Monique Little and David Dundas' "Shark Tank" pitch for You Go Natural started on a high as they shared they had hit a whopping $15 million in sales since the company's six-year inception and estimated another $10 million from their current-year sales. But things swiftly went downhill as the duo revealed they had raised $2 million to increase their inventory to match the rising demand. Although Little and Dundas had garnered impressive sales of $7.5 million the year prior, they incurred a loss of $2 million and had only $100,000 left because they overestimated demand.
Dundas also disclosed that their $30 customer acquisition costs and $3 million advertising expenditure in the previous year had also contributed to the loss. Little and Dundas aimed to expand their business into retail with their headbands. Sharks Barbara Corcoran and Kevin O'Leary disagreed with their retail expansion idea and asserted that the business should stay a direct-to-consumer, online business, so they bowed out. Meanwhile, Daymond John felt their low margins waned his profits and ultimately didn't make an offer as a result.
Although the product impressed Lori Greiner, the losses dampened her confidence, so she didn't invest either. The "Shark Tank" star who ranks the highest by net worth, Mark Cuban, offered up $400,000 for 20%, bringing YGN's valuation to $2 million. After some negotiating, Cuban agreed to give them $400,000 as a debt in exchange for a $3 royalty on their headband range and $5 on the rest of their products. Once they paid their debt, Cuban would get 10% of the company.
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