Mark Cuban Revealed The Business That Had The 'Worst Execution' In Shark Tank History

Twice. Mark Cuban has named Breathometer as his worst business in the history of "Shark Tank." The first time was in 2019, on "Vanity Fair," where he described it as a "Great idea, great concept for a product, [but the] worst execution in the history of Shark Tank." Then in 2022, during his "Full Send" podcast appearance. This time, he struggled to recall the brand's name, but it's clear that he still felt the sting of losing $1 million, the bulk of which he contributed, to a product you can blow into and check your alcohol content.

Charles Michael Yim, the founder of Breathometer, appeared on Season 5 of "Shark Tank" in 2013. He presented the device with a scenario many could relate to: You're at a dinner party, tailgate, or local bar, enjoying some champagne with friends. As the night winds down, the question arises: who is safe to drive? Carrying a bulky old breathalyzer is impractical, but why do so when you have a Breathometer, the world's first smartphone breathalyzer? It's so compact it fits in your pocket. You simply pull out the audio jack, plug it into your smartphone, activate the app, and blow into it. Within seconds, you'll know your breath alcohol level and how long it will take to sober up. Cuban, Lori Greiner, Robert Herjavec, Daymond John, and Kevin O'Leary were the Sharks present during this episode. Little did anyone know that Yim was the real Shark in that room.

Charles Michael Yim requested $250,000 for a 10% equity stake in his company. The product already had market traction with 4,000 units sold within 30 days of its launch, pulling $140,000 in revenue. His immediate goal was to secure a $1 million funding round for Breathometer within the next 60 days. The Sharks agreed to fund the entire $1 million instead of the 250,000 requested.

Negotiation was intense. Cuban opened with an offer of $500,000 for 20% equity. O'Leary proposed $250,000 for 15%, aiming to keep equity dilution minimal. Herjavec and Greiner, along with O'Leary, pooled together to offer $750,000 for a 30% stake. It concluded with Cuban and the other Sharks combining their offers to invest a total of $1 million for 30% — $500,000 for 15% from Cuban and 4 Sharks funding the other $500,000 to split 15% equity. In 2016, O'Leary sat down with Yim on an episode of "Beyond the Tank" to evaluate the progress of Breathometer. The company's valuation had reached approximately $50 million. (These successful companies passed on their Shark Tank offers).

In a 2017 press release by the U.S. Federal Trade Commission (FTC), it was found that the Sharks' investment, which was supposed to measure blood alcohol content (BAC), did not perform as promised. Breathometer positioned itself as a reliable tool to help users make safe driving decisions. However, the FTC discovered the devices often gave lower readings — they could falsely indicate you are safe to drive when you are not.

As a result of these findings, the brand had to stop making any claims about the accuracy of its products unless they could be supported by rigorous testing. The FTC required the company to notify all customers who purchased the devices and offer them full refunds. Following this issue, the business shifted its focus from alcohol breathalyzers to a new product called Mint, which is designed to monitor oral hygiene rather than BAC​​​​​​​​. And even this failed because of the personal actions of Charles Yim.

Mark Cuban said via International Business Times the founder of Breathometer squandered resources on unnecessary expenditures like luxury trips and exotic islands rather than reinvesting in the company. Breathometer ceased operations related to its breathalyzer product by 2017 and faded from the market shortly after. This experience offers takeaway lessons for entrepreneurs on many fronts: execution is paramount. A brilliant idea can crumble without strategic planning, spending, and adherence to quality standards. Here is advice from Jeff Bezos to change your approach to business.

[Featured image by Garymonk via Wikimedia Commons | Cropped and scaled | CC BY-SA 3.0]