Shark Tank, the critically acclaimed show where dreams can either be ignited or shattered, has given us many memorable moments. Yet, few are as striking as the episode where Jeff Witten, founder of CoinOut, boldly turned down a hefty offer from Kevin O’Leary. This wasn’t just any rejection; it was a statement, one that reverberated across social media and celebrated by viewers for its sheer audacity and poise.
A Confrontation with Mr. Wonderful
Kevin O’Leary, known for his uncompromising and often blunt investment style, didn’t pull any punches when Jeff Witten stepped onto the Shark Tank stage to pitch CoinOut. The product, aimed at transforming how we handle small change, piqued the interest of the Sharks, but it was the fierce exchange with O’Leary that caught everyone’s attention.
In Season 9, Episode 23, Witten found himself under intense scrutiny as O’Leary warned him about the competitive financial market landscape. “You’ll get crushed,” O’Leary cautioned, questioning the uniqueness of CoinOut compared to established financial giants. Yet, Witten was not deterred. In a calm, yet firm response, he interrupted O’Leary’s barrage with a now-famous line, “Kevin, with all due respect, let me finish.” The room, and soon the internet, buzzed with approval as Witten continued his pitch undeterred.
The Offers on the Table
The drama escalated when the offers started coming in. Barbara Corcoran was the first to bite, offering $250,000 for 15% equity, with the challenging caveat of securing 700 retailers by year-end. O’Leary floated an equally tempting offer of $250,000 but for a heftier 25% equity. Meanwhile, Robert Herjavec saw potential and matched Corcoran’s financial pledge but sweetened the deal by lowering the equity stake to 15%, contingent on landing a major retailer partnership.
It was Herjavec’s offer that Witten eventually accepted, but not without a unique stipulation of his own: “I have one contingency. We do the deal. Kevin can’t use the product.” This condition not only highlighted Witten’s resolve but also added a humorous twist to the negotiations, leaving both the Sharks and the audience thoroughly impressed.
CoinOut’s Journey Post-Shark Tank
Despite the handshake agreement on Shark Tank, the deal with Herjavec never materialized. In hindsight, this might have been a blessing in disguise for Witten. CoinOut, initially a simple solution to avoid pesky coins, evolved dramatically post-show. By the time their episode aired, the company had pivoted to a cash-back rewards system, leveraging technology to scan receipts on mobile phones instead of using physical cards.
The real turning point came in May 2021, when CoinOut was acquired by Informed Resources Inc., marking a significant milestone in its journey. Reflecting on the deal that never was, Witten remarked in a 2022 interview with Columbia Magazine, “Lucky for us, in retrospect, since it would have been terrible from a valuation perspective.”
The Legacy of a Defiant Pitch
Jeff Witten’s encounter with the Sharks, particularly Kevin O’Leary, is more than just a tale of a rejected offer. It’s a lesson in conviction, in understanding the value of one’s venture, and in negotiating under pressure. As Witten moved on from CoinOut in April 2022 to explore new ventures, his memorable standoff on Shark Tank remains a defining moment of the show’s history, teaching aspiring entrepreneurs that sometimes, the best deal is the one you don’t take.