Shark Tank's Biggest Missed Opportunity Became A $1 Billion Success Story Thanks To Shaquille O'Neal

Summary

• Shark Tank has seen major successes like The Bouqs, Scrub Daddy, and Bombas, but also missed out on Ring Cameras, sold to Amazon for $1 billion.
• CEO Jamie Siminoff turned down Kevin O'Leary's offer on Shark Tank, only to rebound with help from Shaquille O'Neal's $1 million investment.
• Despite losing out on Ring Cameras, Kevin O'Leary has no regrets and remains focused on future successes in the ever-growing world of investments.

Whether or not Shark Tank is in its flop era is debatable, but the reality tv show certainly launched many huge businesses. We all know about Shark Tank's biggest success stories - The Bouqs, Scrub Daddy, and Bombas, just to name a few. The Sharks have also correctly sniffed out some investment duds. But sometimes the Sharks miss the mark and lose out on a gold mine.

One such company was Ring Camera. Originally pitched on Shark Tank as DoorBot, the company was sold to Amazon for a reported $1 billion dollars. To put that in context, that valuation is more than all the companies the sharks have invested in combined in the ten-year history of the show.

Why Shark Tank Missed Out On Ring Cameras

When CEO Jamie Siminoff originally pitched his idea in 2013, during Shark Tank's season 5, episode 9, only one shark, Kevin O'Leary, was interested. However, the deal fell apart as Jamie and Kevin weren't able to agree on the terms of the deal. Jamie was looking for a $700,000 investment, for a 10% stake in the business. Kevin countered that offer by offering a loan for that amount combined with a royalty deal and a small amount of equity. Jamie turned down that offer, unable to agree to the royalty, and left Shark Tank empty-handed.

Jamie admitted that losing the deal left him heartbroken, telling CNBC, “I remember after that Shark Tank episode literally being in tears."

"I needed the money. We were out of money at the time."

The most successful Shark Tank business is the sock company Bombas - valued at $1 billion dollars.

Shaquille O'Neal's Role In Ring Cameras Success

So, how did DoorBot's Jamie Siminoff rebound from the Shark Tank rejection? After his episode of Shark Tank aired, the company's sales increased significantly, and nearly a year after Jamie's Shark Tank episode, the company was rebranded as Ring and launched second-generation hardware. In 2016, Ring received a lucrative investment from the one and only Shaquille O'Neal.

In 2015, Shaq attended the Consumer Electronic Show and expressed his interest in investing in Ring. He already had a Ring camera of his own and saw the potential of the company. Shaq invested $1 million dollars in Ring along with an equity stake.

We all know Shaq is never one to shy away from the spotlight, so he also agreed to promote Ring camera in various public appearances. He even agreed to help install the security cameras in homes all around Georgia. Thanks to Shaquille O'Neal's investment, Ring went on to secure $200 million dollars in their next round of funding.

Ring raised over $200 million with additional investments from Kleiner Perkins Caufield & Byers, Qualcomm Ventures, Goldman Sachs, DFJ Growth and Sir Richard Branson.

More Of Shaquille O'Neal's Entrepreneurial Endeavors

There's a reason you've seen Shaq in so many commercials over the years. The former NBA star is a sharp businessman. Shaq owns multiple franchises of fast food restaurants and car washes. He has reportedly made more than $144 million dollars through his franchises.

On top of that, he is a shareholder in Authentic Brands Group, which has holdings in apparel, entertainment, and athletics brands. As a venture capitalist, Shaq has invested more than $100 million dollars in start-ups, and he's sure to be getting a big pay day from the Amazon Ring deal.

Does Kevin O'Leary Regret Losing The Deal On Ring Cameras?

You would assume that Kevin O'Leary is kicking himself after losing out on such a lucrative investment, but he claims to have no regrets.

Years later, in an interview with CNBC Make It, Kevin explained why the deal with Jamie Siminoff didn't work out. “He didn’t want to be $700,000 in debt, but it was the only way to structure it... We were both frustrated, which is what happens, because that pitch was actually over an hour long. And I was the only guy that offered anything."

“I liked him a lot. I thought he was a great sales guy, but at that time his valuation was insane,” Kevin told CNBC. He explained his mindset, saying, "I never think about it a second time, I really don’t... I feel that the road is always going forward. You can’t go looking back — you can’t second guess yourself. You have to do what you think is right in the moment.... For that time, I made the correct decision.”

There's no bad blood between Jamie and Kevin, as Kevin says “I’m very happy for him."

Despite recent controversy on the show, Kevin doesn't have too many reasons to feel sad. He prefers to focus on his successes rather than his losses.

“I never cry over spilled milk because I’ve learned on ‘Shark Tank,’ over 10 years, I’m going to see 10 great deals right after his, and I did,” Kevin stated. "[Ring] won’t be the last to sell for $1 billion...."

"The deals are getting bigger every year."

In 2017, a company Kevin invested in through Shark Tank, Plated, sold to Albertsons for $300 million dollars. It's not $1 billion, but certainly nothing to sneeze at.