Mark Cuban-backed 'Shark Tank' beauty brand closes, no bankruptcy

“Hi, I'm Fiona Co Chan. I'm from San Francisco, California, and I'm here seeking $400,000 for 5% equity in my company.”

That's how Co Chan started her appearance on “Shark Tank,” which led to an unlikely outcome for her company, Youthforia.

“Shark Tank,” a show where businesses pitch shares in their companies to actual investors (the Sharks), has funded hundreds, maybe thousands of entrepreneurs, but the Sharks tend to stay in their lane.

Kevin “Mr. Wonderful” O'leary, for example, has a wedding platform and while that may not seem like his niche, he often looks for companies that expand that portfolio. Lori Grenier tends to look for products that she can launch on the QVC shopping channel while Daymond John often leans into his experience manufacturing clothing.

Mark Cuban has done a wide array of deals, but he tends to stay in the technology space, That's not the only area where he has invested, but he generally has avoided beauty companies because that's not exactly his brand.

Co Chan, however, seemed to captivate him as she sold her beauty brand, Youthforia, as a tech company of sorts.

“Our beauty products are bio-based, meaning we're using plant-based, renewable ingredients which are great for your skin and good for the planet. We are best known for our BYO Blush, the world's first color-changing blush oil that reacts to your skin's pH to give you the perfect shade,” she shared.

Cuban is stepping down from “Shark Tank” after this season.

Image source: Jerod Harris/Getty Images for Vox Media

Youthforia landed Mark Cuban as an investor

“You know, I don't know anything about this, but to Barbara's point, I was super curious because when you have something that's completely differentiated, you ride that and you don't do anything else because that just dilutes your efforts. And sometimes you shouldn't listen to your customers. When you have something unique, you play that edge,” Cuban said.

He then dropped out of the bidding.

Cuban, however, never really went away and it's not uncommon for Sharks to drop out then come back in.

“I wish I knew a lot about this space because I think this could be the real deal and you could use some guidance on it,” Cuban added.

He then jumped back in.

“Would you do $400,000?…No, for me. Maybe my daughters will like this. I know they'll understand it, right? But I need more equity, right? Because you're getting three of us, Alyssa, Alexis, and Mark. And Tiffany, my wife, too. So 400,000 for 10%, no royalty,” he offered.

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Co Chan countered asking if Cuban would do the deal at 8%.

“I'll even go do demos,” Cuban offered.

O'Leary countered offered to take lower equity, but asking for a higher royalty, while Cuban did not ask for a royalty at all.

“Just to prove a point, I'll do it at 8% no royalty,” Cuban countered.

Co Chan barely hesitated.

“You've got a deal.

Youthforia closes unexpectedly

Co Chan posted a message on Instagram that bluntly shared that Youthforia was being closed.

“We're closing Youthforia,” she wrote. “I just want to thank you from the bottom of my heart for all of your wonderful support over the past few years. It's been a dream to create such a beautiful brand — but unfortunately, I've made the hard decision to shut down Youthforia.”

Co Chan did not explain the decision.

She did announce that the Youforia website was still open and that the company would be selling off its inventory in a 50% off sale.

The website shared the news as well.

“We’re shutting down our business — thank you so much for the past few years. We appreciate you. No code needed. Shop makeup that acts like skincare,” it posted on its homepage.

The company is not accepting any returns and is offering free shipping on orders over $100.

Youthforia's website still shares Chan's original mission prominently.

“I believe that makeup should be an extension of your skincare and that means being able to fall asleep with makeup on without waking up feeling guilty,” she wrote.