"You can't make any money" — When Shark Tank star Kevin O'Leary urged Wen Muenyi to abandon his brand HercLeon

Entrepreneur Wen Muenyi is the founder of HercLeon and Jax Sheets, which he presented on Shark Tank season 12 episode 13, which aired in February 2021. HercLeon is the parent company that designs clothes that are designed to stay fresh for longer. Meanwhile, Jax Sheets is one of their product lines and focuses on copper-infused bedsheets that are odor-free.

On Shark Tank, Wen was seeking $212,000 for a 10% stake in his company, Jax Sheets. He began his enthusiastic pitch with a statistic about single men washing their sheets once every three months. This sparked reactions ranging from disgust to laughter from the Sharks.

The entrepreneur explained to the Sharks that he designed the sheets so that they were odor-resistant and had bacteria-reducing properties. He said that the sheets were designed for men who neglected to wash their sheets regularly.

While his pitch impressed the Sharks, Kevin O'Leary urged Muenyi to abandon parts of his business. He wondered why Wen was selling T-shirts under his HercLeon brand.

"Why don't you burn those? Why are you selling T-shirts? You can't make any money doing that,” O'Leary asked.

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Shark Tank: What happened during the pitch?

Wen's pitch for Jax Sheets on Shark Tank included samples of his products including the copper-infused clothing. While Mark Cuban and the other Sharks admired the innovation and humor in his presentation, they zeroed in on the challenges of scaling the business.

Kevin O’Leary praised the copper-infused sheets for their practicality but was skeptical of HercLeon's product lines, including T-shirts and underwear. He questioned why Muenyi spread himself across such distinct categories instead of focusing solely on sheets.

“Okay, but you realize that the underwear business is different than the T-shirt business, is different than the sheet business,” he said.

Meanwhile, Robert Herjavec was critical of the company’s unclear customer acquisition cost outside Kickstarter, noting that it was "almost like an unreal environment." The Shark then emphasized the need for proof of sustainable customer acquisition beyond crowdfunding campaigns.

Despite his skepticism, O’Leary acknowledged the potential of Jax Sheets products. He said that if he were in Wen's shoes, he "would forget about HercLeon," adding that the sheet business was "intriguing." The Shark went on to say that he loved the story of having copper-infused sheets for men to "stop them from rotting in their own beds."

“We don't know yet the customer acquisition cost, and so you can't say to me that you're worth close to $2 million. I don't buy it," O'Leary noted.

Throughout the pitch, Muenyi’s transparency and enthusiasm won over the Sharks on a personal level. He admitted that his specific $212,000 ask stemmed from his difficulty saying round numbers like $200,000 without stuttering. His honesty and background endeared him to the panel.

However, the Sharks agreed that while HercLeon had an intriguing concept, it lacked the structure and data needed to justify Muenyi’s $2 million valuation. Muenyi revealed that his Kickstarter campaign for Jax Sheets raised $350,000 but hadn’t led to sustained sales due to inventory challenges.

This lack of sales beyond crowdfunding raised concerns for investors like Robert Herjavec. The Shark said that they got excited when they saw pitches that were "pure and honest and full of joy." He called the entrepreneur "purity," before saying that he wasn't an "investable business" at the time. Herjavec noted that Kickstarter wasn't a business, stating that Wen needed to "go out and actually get customers."

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Why the Sharks passed on HercLeon

The Shark Tank investors Mark Cuban and Lori Greiner praised Muenyi’s personality and entrepreneurial spirit but decided not to invest. Cuban called the pitch "the best ever" but acknowledged that the business was better suited for Muenyi to grow on his own without investor interference.

Daymond John shared a similar sentiment, stating that Muenyi’s freedom to experiment and learn as a solo entrepreneur was an asset. The Sharks’ primary concerns revolved around HercLeon’s lack of focus and the absence of verifiable customer acquisition costs in a non-Kickstarter environment.

Kevin O’Leary, despite his sharp critiques, expressed hope for Wen’s return to the Shark Tank with more concrete data.

“When you know your customer acquisition costs, daddy has cash. But you don't have what I need right now,” he added.

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Shark Tank airs every Friday on ABC at 8/7c.