The biggest challenge Stryx faces during its “Shark Tank” Season 13 appearance is its valuation. Asking for $600,000 in exchange for just 5% of the company, it asserts itself as a $12 million entity. Though Stryx had more than decent sales (at the time, it was averaging over $100,000 per month), this rich equity ask is seemingly an attempt to keep what little of the company Devir Kahan and John Shanahan had left in their control. Between the two of them, they only owned about 30% of Stryx.
As for the pitch itself, the aim of Stryx seems to be to make men more comfortable using makeup by offering it in brick-and-mortar retail stores (alongside its feminine counterparts) while keeping the packaging as discreet as possible so customers don’t attract any unwanted attention. Mark Cuban takes issue with this stealth marketing approach and withdraws from negotiations.
Daymond John and Lori Greiner are next to bow out, leaving Stryx a choice between a classically greedy Kevin O’Leary royalty agreement or an equity deal with Robert Herjavec, who seeks 10% ownership in exchange for his investment. The entrepreneurs ultimately accept Herjavec’s offer.