"The numbers don't make sense to me" — When Shark Tank investor Mark Cuban rejected Candi

Shark Tank season 13 episode 10, released on January 7, 2022, saw Keithan and Quiante Hendrick pitch their company, Candi, a social network that allows fans to video chat with their favorite celebrities. They sought $500,000 for a 15% stake in their business. However, like the other Sharks, Mark Cuban backed out of making an offer, expressing concern over their ask and valuation.

"You made a fundamental Shark Tank mistake. You asked for $500K and you only gave up 15%, and you're expecting us to be that door opener all the time. That's a lot of work. That's a lot of obligation and so the numbers don't make sense to me. So for that reason, I'm out," Mark said.

The other Shark Tank panelists also removed themselves from discussion, citing issues with their valuation and overall business model. While some said the business was still in its early stages and needed more experience to become an investable one, others were apprehensive about the technology used. Consequently, Candi had to leave the Tank empty-handed.

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"Extremely aggressive with the number" — Shark Tank guest panelist Kevin Hart refused to make an offer to Candi

While demonstrating their social network to the Sharks, founder Keithan explained that with Candi, fans could get the opportunity to interact with their favorite celebrities and influencers on a deeper level, unlike impersonal calls.

"Well, at Candi, we're making dreams come true with one memorable meet-and-greet at a time," Quiante added.

The husband and wife twosome then introduced American singer-songwriter, Mya, who appreciated her experience with Candi, via video chat. As soon as their pitch ended, Shark Tank panelist Lori asked the entrepreneurs if they had their network up and running. Quiante responded in the affirmative and shared that they launched their company in 2020, and had $100,000 in sales.

Kevin O'Leary, on the other hand, asked the owners to explain the business model and how it worked. Keithan responded, saying each celebrity would state their rate for a five-minute virtual meeting. Of that rate, the celebrities would keep 75%, whereas the other 25% would end up with the company.

He further told the Shark Tank investors that customers could come up on their website and set their preferred time, which then the Candi team would convey to the celebrities and try to make it happen. When asked about the celebrity rates, the business owner revealed that some people charged $5-$10, whereas others, like Chaka Khan, charged $400.

With over 350 celebrities and influencers, Candi at the time of the episode's airing, had arranged over 2000 meet-and-greets. When Kevin asked where the fans came from, Keithan explained that they received customers and engagement from celebrities posting about Candi on their social media platforms.

When Barbara Corcoran inquired about the inception of the company, Keithan revealed he wanted to create a platform where fans could have interpersonal meetings and not have to watch a pre-recorded video.

However, they needed at least one Shark Tank investor's assistance and investment to better their technology to create an app, hire people to acquire talent, and increase their marketing efforts.

Kevin Hart expressed concern over how the business depended on their "talent pool" for the return and engagement. He suspected the company's success rate and feared other competitors might create a better version of Candi.

"I think you guys came in extremely aggressive with the number and the business model, it just didn't match the ask. So, it's honestly too early for me. I have to say it, I'm out," Kevin said.

Shark Tank investor Kevin O'Leary expressed a similar sentiment and removed himself from consideration. Barbara also noted that the ask was "just too much" and bowed out of discussion.

Lori explained the issue to the business owners, saying their ask was "much higher" than their sales. Since she was unsure about the company's growth rate with all the competition in the market, she also refused to invest.

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Shark Tank season 16 airs new episodes every Friday at 8 pm ET exclusively on ABC.