A franchise was offered to the sharks in one episode of the Shark Tank. It was a graffiti removal business, which operated out of a single truck per operation, and used a secret chemical which would be used by the business.
The offer from the Paul, the business owner, was $350,000 for 15% equity in the company. Kevin O'leary immediately made him an offer of $350,000 for 110% because of how young the business was.
Two high offers where made for 75% of the business, but both we're rejected by Paul, knowing that the business had more potential than that. Those offers would also make Paul an employee of his own business and not a sole owner.
I believe this episode was a good example of the sharks jumping the gun, and underestimating a company. If they had looked at the company honestly, I believe they would see the potential in it and offer a reasonable investment.
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