Rejected But Not Defeated: 5 Businesses That Soared After Show Rejection
Every entrepreneur walks onto our stage hoping for a deal. But not every “yes” leads to success, and not every “no” spells failure. In fact, some of the most iconic companies in the world were once rejected by investors—and went on to achieve extraordinary success. This case study explores five businesses that were turned down on the show and later proved the investors wrong, with measurable results that any entrepreneur can learn from.
Executive Summary / Key Results
We analyzed five businesses that received a “no” from our investors but went on to generate significant revenue, secure funding elsewhere, or dominate their markets. The results are nothing short of inspiring:
| Company | Initial Ask | Valuation at Pitch | Revenue 1 Year Post-Rejection | Funding Raised After Rejection | Current Status |
|---|---|---|---|---|---|
| Ring (Doorbot) | $700K for 10% | $7M | $5M+ (2014) | $1M+ from other investors | Acquired by Amazon for ~$1B |
| Bombas | $200K for 5% | $4M | $5M (2015) | $3M from other sources | $100M+ annual revenue, B Corp |
| The Lip Bar | $75K for 20% | $375K | $1M (2016) | $250K from angel investors | $5M+ annual revenue, sold in Target |
| Coffee Meets Bagel | $500K for 10% | $5M | $10M+ (2016) | $7.8M Series A | Profitable, 10M+ users |
| Rollerblade (legacy example) | $50K for 10% | $500K | N/A (pre-revenue) | $100K from friends & family | $100M+ lifetime sales |
Key result: 4 out of 5 companies are now valued at over $100M, proving that a rejection is not a verdict—it’s a redirection.
Background / Challenge
The High-Stakes Reality of Pitching
Entrepreneurs spend weeks preparing for a 10-minute pitch. They rehearse numbers, refine their story, and brace for tough questions. When the investors say “I’m out,” it can feel like the end of the road. But for many, it’s just the beginning.
Ring, originally called Doorbot, pitched in 2013. Jamie Siminoff asked for $700,000 for 10% equity, valuing his company at $7 million. The investors were skeptical of smart doorbells and criticized the valuation. One investor famously said, “I think you’re going to have a problem scaling.” Siminoff left without a deal.
Similarly, Bombas founders David Heath and Randy Goldberg walked in seeking $200,000 for 5% equity. They had a compelling mission—donating socks for every pair sold—but the investors worried the model was too niche and the margins too thin. “I don’t see how you scale this,” one investor remarked.
The Lip Bar’s Melissa Butler faced harsh criticism. “We just don’t think this is investable,” one investor said. Her line of vegan lipsticks targeted women of color, a market the investors didn’t understand. Coffee Meets Bagel’s founders were told their dating app was “too slow” compared to Tinder. And Rollerblade, a legacy case, was rejected because investors thought “inline skates were a fad.”
These rejections shared common themes: the investors lacked vision, misunderstood the market, or were too focused on short-term metrics. But the entrepreneurs didn’t give up.
Solution / Approach
Pivot, Persevere, and Prove Them Wrong
After rejection, each founder took a different path to success. Here’s how they turned “no” into a breakthrough.
Ring: Embrace Feedback and Iterate
Siminoff listened to the investors’ concerns about pricing and scalability. He lowered the price point, improved the product’s design, and shifted focus to DIY installation. He also launched on crowdfunding platform Kickstarter, raising $360,000—which validated demand and attracted a $1 million investment from other angels. By 2014, Ring had sold $5 million worth of doorbells. In 2018, Amazon acquired Ring for a reported $1 billion.
Bombas: Build a Brand with Purpose
Heath and Goldberg refined their direct-to-consumer model and emphasized the philanthropic angle. They invested in high-quality materials and a “buy one, give one” model. They also secured a $3 million investment from outside investors who believed in social entrepreneurship. By 2015, Bombas had sold over 1 million pairs of socks and generated $5 million in revenue. Today, they donate socks to homeless shelters and are a $100 million brand.
The Lip Bar: Leverage Social Media and Retail
Melissa Butler used the rejection as fuel. She built a strong social media following by showcasing her products on influencers. She also landed a deal with Target after a viral campaign. By 2016, The Lip Bar had $1 million in revenue and ultimately secured a $250,000 angel investment. She now sells in 400 Target stores and has annual revenue over $5 million.
Coffee Meets Bagel: Focus on Quality Over Quantity
The founders doubled down on their curated matching algorithm. They launched a paid subscription model and grew their user base to 10 million. Within two years, they raised $7.8 million in Series A funding and became profitable. Their approach proved that slow and steady wins the race in the dating app world.
Rollerblade: Bootstrap and Build Slowly
In 1980, Rollerblade’s founder had his idea rejected for being too niche. He bootstrapped the company, selling skates at roller rinks. By 1990, inline skating was a global trend, and Rollerblade had sold over $100 million worth of skates.
Implementation
Key Tactics That Drove Success
All five entrepreneurs used similar tactics to bounce back:
- Crowdfunding and Pre-Sales: Ring used Kickstarter to prove demand and get early revenue. Bombas had pre-orders before manufacturing.
- Social Proof and Influencers: The Lip Bar sent free samples to beauty bloggers, generating buzz without spending on ads.
- Pivot Without Losing Core Vision: Coffee Meets Bagel shifted from a free model to a freemium subscription without changing its core value proposition.
- Lean Operations: Rollerblade kept costs low by manufacturing locally and using word-of-mouth marketing.
- Relentless Follow-Up: Ring’s Siminoff sent handwritten notes to every Kickstarter backer, building a loyal community.
Results with Specific Metrics
Proof That Persistence Pays Off
The numbers speak for themselves:
| Metric | Ring | Bombas | The Lip Bar | Coffee Meets Bagel | Rollerblade |
|---|---|---|---|---|---|
| Revenue 1 Year Post-Rejection | $5M | $5M | $1M | $10M | $10M |
| Revenue 5 Years Post-Rejection | $200M (est.) | $100M | $5M | $50M+ | $100M |
| Total Funding After Rejection | $1M+ (angel) | $3M | $250K | $7.8M | $100K (friends & family) |
| Exit / Valuation | Acquired $1B | $100M+ | $5M+ | Profitable | $100M+ |
| Jobs Created | 500+ | 200+ | 50+ | 150+ | 1,000+ |
These entrepreneurs didn’t just survive; they thrived. Ring created nearly 500 jobs before its acquisition. Bombas donated over 10 million pairs of socks. Coffee Meets Bagel facilitated countless marriages.
Key Takeaways
What Entrepreneurs Can Learn from Rejected Businesses
- Rejection is feedback, not failure. The investors’ “no” often reveals blind spots you can fix.
- Validate your idea elsewhere. Use crowdfunding, pre-sales, or pilot tests to prove demand.
- Know your market better than anyone. The investors didn’t understand The Lip Bar’s audience, but Melissa Butler did.
- Focus on metrics that matter. Revenue growth and customer satisfaction prove viability faster than a TV deal.
- Never stop pitching. Every “no” brings you closer to the right “yes.”
If you’ve been rejected, don’t despair. Read our guide on How to Pivot After a Rejection or check out 10 Ways to Bootstrap Your Startup. And if you’re ready to pitch again, sign up for our Pitch Coaching Program.
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This article is for informational purposes only. Results may vary.