Why Coffee Meets Bagel Rejected Mark Cuban After He Made The Biggest Offer In Shark Tank History

Highlights

• Coffee Meets Bagel founders rejected Mark Cuban's $30 million offer on Shark Tank, believing their app may just grow as large as Match.com.
• The app blended social media components with relationship, offering day by day matches according to customers' pals, and had a novel earnings style.
• Coffee Meets Bagel raised $23.2 million in investments and was valued at $A hundred and fifty million in 2023.

Throughout Shark Tank history, the display has made many people richer. For instance, Kevin O'Leary is rich sufficient that people wonder what will happen to his fortune when he dies. On top of that, some of the people who were given to pitch on the show have become wealthy.

Even although Mark Cuban has a history of calling out businesses he thought were scams, he has made many offers that have made him richer. However, Cuban once tried to make a big cash deal for Coffee Meets Bagel and used to be briefly rejected.

This article will expose why Mark Cuban's Coffee Meet Bagel offer was quickly rejected. Then, the article will have a look at what took place to Coffee Meets Bagel after Shark Tank.

Coffee Meets Bagel's Founders Rejected $30 Million From Mark Cuban During A Shark Tank Episode

When the founders of Coffee Meets Bagel seemed on Shark Tank, the Kang sisters began their pitch with something that might in most cases get them skewered. The corporate's 3 founders asked the sharks to take a position $500,000 in trade for 5% of the corporate.

Given how much money the founders have been looking for, they were asking the sharks to value their corporate at $10 million. Even though that could be a huge number, one in every of the sharks gave the impression open to going even further.

After the founders described their industry in great element, the sharks have been lovely taken aback. Ultimately, Mark Cuban was once interested sufficient that he suggested that he might pay $30 million for the deal, and he was rejected amazingly enough.

After the founders of Coffee Meets Bagel began explaining their trade, the sharks went out one after another. As a YouTube video of the pitch finds, it initially appeared like the dating app's founders were not going to get an offer.

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However, since Mark Cuban is very rich, he can afford to take a position some huge cash in companies he believes in. With that in mind, it isn't shocking that Cuban floated the idea of making the biggest cash deal in Shark Tank history.

"Let me ask you a question. If I offered you $30 million for the company, would you take it."

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For most of the people in the international, the idea of rejecting $30 million could be hard to even fathom. For the founders of Coffee Meets Bagel, then again, they didn't seem to even actually believe what Cuban used to be suggesting.

Instead, certainly one of the 3 founders rejected Cuban's offer whilst in brief explaining why they weren't .

"No. I would not be taking it because we see, we see this business going, growing as big as Match.com, and you know how much revenue they're generating? $800 million a year. They're becoming a billion-dollar revenue company and we think this model and the product has potential to be as big as match."

It is worth noting that the founders of Coffee Meets Bagel published that one in every of Match.com's co-founders invested in their industry and believed in them.

Considering how assured the founding sisters have been, that begs an obtrusive query. What made Coffee Meets Bagel other from the slew of alternative relationship apps? The thing that made Coffee Meets Bagel stand out used to be that it blended social media parts with a dating app.

Users of the app may buddy people they already know and like in real existence. Then, the app provided users with one fit daily according to who their buddies had been. For instance, the app would match a user with a chum of considered one of their buddies. In idea, that should have equipped some assurance that customers wouldn't be matched with entire creeps.

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During Coffee Meets Bagel's Shark Tank pitch, the founders additionally printed some worrisome attainable main points of their trade. Most particularly, the founders said that the corporate would only begin to earn money as soon as the industry exceeded $10 million in annual revenue.

Once the match used to be supplied, the person could like or cross on them. The handiest manner the users may then keep in touch is that if either one of them appreciated every other's profile. The app stood out as it promoted itself as being for individuals who have been interested in critical dating.

The founders additionally defined their income type to the sharks. While the app used to be unfastened to make use of, users needed to pay money to get access to a few options. For example, customers had to pay to be informed what number of in their pals knew the person they matched with.

Coffee Meets Bagel's founders went directly to state that a part of the app's appeal was once its title. Since Coffee Meets Bagel does not sound love it can be the title of a dating app, their users may speak about their enjoy whilst keeping up their privacy higher.

Coffee Meets Bagel Went Through Ups And Downs After Shark Tank

After Coffee Meets Bagel's Shark Tank pitch first aired, the founders were met with many astonished audience. However, the founding sisters stood through their determination to reject Mark Cuban's offer.

According to an article from The List about what happened to Coffee Meets Bagel after Shark Tank that The List printed, things to begin with seemed nice. In fact, that article cites a declare from SEOAves that stated that the founders raised $23.2 million during five rounds of investments.

Another explanation why the founders needed to be glad is that, as of June 2024, Coffee Meets Bagel continues to be in business. Most particularly, Coffee Meets Bagel remained available to obtain for iPhone and Android users.

Unfortunately for everyone involved with Coffee Meets Bagel, alternatively, the corporate hasn't reached the level that match.com once did.

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According to The List's article which cited SEOAves again, Coffee Meets Bagel had 10 million customers. That intended that Coffee Meets Bagel was once only in the top 20 courting apps at the time. It is also worth noting that many other courting apps are more famous than Coffee Meets Bagel in 2024.

Another drawback for Coffee Meets Bagel was once that the app went down in August 2023. At that time, the BBC reported on how disappointed some of the app's users had been. After all, customers lost the skill to contact their suits or see their previous messages. That supposed that some customers showed up for planned dates only to be stood up.

Despite some hiccups, the founders are still likely satisfied they turned Mark Cuban down. After all, a January 2023 article from The Richest estimated that Coffee Meets Bagel was valued at $150 million as a trade.

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