"You're not even close" - When Shark Tank's Mark Cuban rejected MuteMe

MuteMe founders Parm Dhoot and Tye Davis appeared on Shark Tank season 13 episode 2 seeking $200,000 for 10% equity in their mute button company. The product was designed to help remote workers easily mute microphones during virtual meetings. It retailed for $39 with manufacturing costs of $11.62 per unit.

Despite raising over $400,000 through crowdfunding campaigns on Kickstarter and IndieGoGo, the founders faced harsh criticism from the Sharks. After hearing their pitch and sales figures of only $61,000 in web sales plus 150 units through Staples, Mark Cuban stated:

"You've got to come up with a way to sell it. Do some fun with it on TikTok. You have got to be great content creators. You're a product and you haven't figured out how to sell it. I mean you're not even close. That's what I think you need to be successful at. So for those reasons I'm out."

All Shark Tank investors declined to offer funding, but MuteMe later achieved over $2 million in lifetime sales by July 2023.

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MuteMe button creators left Shark Tank empty handed in season 13

MuteMe button founders Parm Dhoot and Tye Davis entered Shark Tank with their wives joining virtually via screens positioned onstage. The founders delivered a rhyming pitch that explained their illuminated mute button concept while showcasing the physical product to the Sharks.

"We can hear you," Parm yelled when their wives started commenting about not being physically present. By doing so, they highlighted the common audio confusion in virtual meetings that their product aimed to solve.

The founders explained that MuteMe changes color depending on microphone status - green when live and red when muted. This was aimed to give users an immediate visual indicator of their audio status during calls.

The company founders detailed how their USB button worked with all virtual conferencing platforms by downloading software that synchronized with the computer's microphone.

This universal compatibility made it useful across different meeting applications like Zoom, Microsoft Teams, and Google Meet. They explained their bulk discount structure for companies ordering 25 or more units, positioning MuteMe as both a consumer and business product.

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Sharks' reactions

Shark Tank investor Mark Cuban suggested using social media platforms like TikTok to create fun, engaging content around their product. Cuban emphasized that being good product creators was insufficient without strong marketing.

Kevin O'Leary stated the business was "going to zero" before declining to invest. Peter Jones revealed he owned a gadget company in Asia and could easily produce a similar product. Jones wrestled with his decision, ultimately saying he worried his team would mock him for investing $200,000 in "a button that turns red and green."

Daymond John highlighted significant changes needed in manufacturing costs and marketing approach. He offered the full $200,000 requested but asked for 50% equity due to the amount of work he anticipated putting into the business.

The founders hesitated at this substantial equity request, which valued their company at just $400,000 rather than their proposed $2 million valuation. Lori Greiner also declined to invest. After Peter Jones also declined, MuteMe left without securing any Shark investment.

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Post-Tank developments

Following their appearance, MuteMe encountered significant production obstacles. As per Shark Tank Blog, global supply chain disruptions and semiconductor shortage created major delays in product delivery. The company adapted by programming their own chips and manually installing them to maintain production.

Despite manufacturing challenges, MuteMe expanded their product offerings by introducing the MuteMe Mini, a smaller version designed for travelers and those with limited desk space. They also expanded their sales channels by launching an Amazon store while maintaining direct website sales.

By October 2022, approximately 19 months after their Shark Tank episode aired, MuteMe had surpassed $1 million in sales. By July 2023, their lifetime sales had doubled to over $2 million.

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Shark Tank season 16 airs on ABC network.