“Shark Tank” investor and entrepreneur Robert Herjavec has called Tipsy Elves, an ugly Christmas-sweater company, his best investment on the show yet.
Herjavec invested $US100,000 for 10% equity in the business in 2013. Two years later, the company pulled in over $US10 million in sales and has expanded to other holiday apparel.
There’s an important lesson to be learned from the founders’ pitch: They brought energy. Herjavec says if entrepreneurs are able to entertain him, they have his attention.
“Investors are tired, they’re cold, they’re hungry. They hear boring pitches all the time,” Herjavec tells Business Insider. “You have to entertain me.”
When Tipsy Elves cofounders Evan Mendelsohn and Nick Morton appeared on the show in 2013, they gave a quick spiel about their company, then launched into a surprise fashion show.
Models wearing goofy Christmas and Hanukkah sweaters strutted their stuff for the sharks, while Mendelsohn and Morton provided commentary on the looks.
It was silly, but certainly entertaining — which may have helped the former dentist and lawyer grab Herjavec’s interest. Look at that smile on Herjavec’s face.
Herjavec tells Business Insider one of the worst things an entrepreneur can do in a pitch is appear bored. If a founder is excited, an investor will be ready to listen, he says.