What is the fastest angel investment exit you have seen?
Updated: Jan 5
(Answer requested by Jake M.)
Jake, here's a fun story...
Kevin O’leary from Shark Tank invested $75k into a company called “Wicked Cupcakes”.
On the surface, it was a seemingly terrible business. The company sells cupcakes in a mason jar for $7 bucks a pop.
The cupcakes have a short shelf life, overhead is high, and generally speaking, it didn't look like a great opportunity; especially from an angel investor perspective.
After none of the other sharks would invest, Mr. Wonderful came in with an offer:
$75,000 for a $1 cut of every cupcake sold until he got his money back.
45 cents for every cupcake sold in perpetuity thereafter.
What Kevin O’leary didn’t know is that the wife’s husband was an IT guy. Anticipating the traffic from “Wicked Cupcakes” being on Shark Tank, the Husband asked his boss if he could borrow the company servers the night it aired.
The Boss said yes, and when the show finally did air, their website didn't crash like other contestants.
Instead, they ended up selling a quarter million dollars in cupcakes over the course of that next week.
The company is now selling upwards of 19k cupcakes a month.
Kevin got his money back in 74 days.
Not to mention 45 cents every time a cupcake is sold!