Yahoo Finance Barbara Corcoran: Why She Won’t Invest in Rich Kids
Anyone chancing to enter the Shark Tank reality show looking for seed money has to be prepared for the possibility of harsh rejection. When Ben and Eric Kusin went on the show during its sixth season, they got a surprise from Shark Tank investor Barbara Corcoran.
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Pitching Reviver — their odor-eliminating reusable wipe company — the Kusins revealed to the Sharks that their father, Gary Kusin, co-founder of GameStop and former CEO of FedEx, gave his sons a helpful $2 million in growth funding. That’s when Corcoran took exception.
“I feel very badly saying this, but I, as a matter of principle, don’t invest in rich kids’ businesses,” said the real estate mogul, author and podcaster.
Addressing the episode and Corcoran’s reaction, Eric took to Reddit, posting, “Ben and I both had some really good conversation about it in the Tank that unfortunately just got left on the edit room floor. I honestly think Barbara heard us out, and felt bad about generalizing us.”
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Corcoran has never been shy about the tough grind she experienced establishing her career and financial success. But she clarified her rather harsh words later when interviewed by Business Insider in 2018.
“It’s not that I look down on [privilege]. It’s harder for a kid with privilege and successful parents…to succeed if they’re going to be in business for themselves,” said Corcoran. “I’m not talking about in corporate America or investment banking — all those connections play to your advantage, I think, along with education.”
Speaking at Insider’s Ignition conference, Corcoran expanded on the difference between rich and poor investors and whether her kids will get a financial boost if they follow in their mom’s footsteps.
“[Rich kids] know all about business as an observer, but they don’t know business as a player,” Corcoran said. “Whereas poor kids tend to have had hardships. They’ve had to be a player earlier. They’ve had to contribute to the family, they’ve seen their parents struggle, they know the power of a buck.”
Despite saying that, Corcoran is realistic when discussing whether she’ll give her kids a leg up in the business world.
“Will I give them money when they want to start a business?” she asked. “I’m sure I will. I’m a sucker like every other parent out there.”
Corcoran — who made her estimated $100 million fortune after selling her real estate company, The Corcoran Group, to NRT Inc. for $66 million in 2001 — has built up an impressive portfolio of personal property over the years, including a $15 million penthouse in New York City and a $1 million “double wide” mobile home in a Los Angeles trailer park.
Despite Corcoran’s Shark Tank pass, the Kusins’ appearance was successful, with the brothers settling on a $150,000/15% equity deal with Lori Greiner. Since then, Reviver has ceased operation and Eric and Ben Kusin have been involved in ventures in the restaurant, home renovation, video game development and cookie industries, according to House Digest.
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