Did Lori Greiner 'scam' Legacy Shave founder Mike Gutow? Here's why 'Shark Tank' fans are upset with the $700K deal
LOS ANGELES, CALIFORNIA: The Legacy Shave pitch on the recently aired episode of 'Shark Tank' managed to bring out a totally different side of the Sharks that left fans with mixed feelings. The usually shrewd and stone-cold Mr Wonderful aka Kevin O'Leary was moved to tears when he heard the story of how Mike Gutow, founder of Legacy Shave's father left a prototype for the shaving brush and urged Mike and his brother to pursue their dream of launching the shave brush business. While on the other hand, the usually kind and generous Shark aka Lori Greiner unleashed her really Sharky side by offering a deal that many fans felt was "scamming" Mike out of his business!
Mike walked into the tank seeking a $300K investment in exchange for a 10% stake in his shaving rush brand that could deliver a mess-free and clean shaving experience. Though the Sharks were moved by Mike's very moving and emotional backstory, they were, however, put off when they learned that the business had run out of money. This prompted Mark Cuban, Barbara Corcoran, Robert Herjavec, and even Kevin to sit out from making a deal. Though Lori initially seemed a bit hesitant about investing her money into the business, her eyes immediately perked up on hearing the word patent. Mike explained how he held the patent for the the unique brush and could be used not just on shave cream cans but also on aerosol spray bottles, and various other cans. This prompted Lori to make an offer. The QVC Queen decided to take a leaf out of Kevin's book and extend a royalty deal. But unlike Kevin she wasn't seeking royalty, instead, she wanted to buy out Mike's entire business for a million dollars and offer him a royalty of 3% of net sales for perpetuity.
