Legacy Shave founded by brothers Mike and Dave Gutow in 2016
Mike Gutow and his brother gave their father a gift (old-fashioned shaving brush) for Father's Day.
Mike's father used a clay-like putty to shape a disposable paintbrush into an improvised shaving brush that worked perfectly.
Mike, his father, and his brother put the project on hold for 20 years. Unfortunately, they lost their father to cancer.
A year after his passing, the brothers revisited their father's basement and discovered not just 20 or 30 prototypes, but a staggering 3,000 originals.
Mike and his brother found a note from their father, "Don't wait, life's short, take the shot."
After reading the note, the brothers realized they had to pursue their invention.
On November 18, 2022, it was featured in Shark Tank season 14 episode 7.
Mike Gutow, the founder of Legacy Shave, entered the competition hoping to win $300k for 10% equity.
Lori offers to pay $1 million for 100% of Mike's company and, on top of that, to pay him a 3% royalty on net sales every year going forward.
Mike said to Lori, "Would you be willing to consider an arrangement where we retain 5% equity in our company, ensuring that we can continue our legacy?"
Lori's counter offer: $700k + a royalty of 3% of net sales in perpetuity for 95% of the company.
Finally, Lori and Mike made the deal for $700K + 5% equity.