Billionaire Chris Sacca absolutely shredded the pitch of an entrepreneur duo on "Shark Tank" Friday.
The founders withheld critical information about their business until the very end of the pitch, and the Silicon Valley investor was having none of it.
Savannah Cowley and Samuel Agboola went on the reality television show seeking $375,000, in exchange for a 5 percent investment in their photo printing service, Flag.
The entrepreneurs presented Flag as "the world's first truly free photo printing app." Customers would be able to order up to 20 free prints per month with no shipping charge and no subscription fee. A customer would not need to enter credit card information to receive free prints with the app, they said.
To pay for the service, Flag charges advertisers to put their message on the back of the photos sent to customers.
In the three months prior to pitching on the show, Flag had made $150,000 in revenue from selling advertising to companies, including credit card giant Visa.
Investor Kevin O'Leary expressed concern early on in the pitch. "There's nothing proprietary about this," he said. Competitors could replicate the Flag offering pretty easily.
Cowley and Agboola continued on. They eventually reveal they have already raised $1.6 million and that they are currently seeking a total raise of $3 million. The $375,000 they were looking for from the sharks was only a small portion of the total raise they were in the midst of.
At that point, billionaire tech investor Mark Cuban expressed his frustration at not being told right at the start of the pitch the total funding round the team was seeking. "Oh! You didn't think you should tell us that?" he asked.
O'Leary piled on, frustrated that Flag didn't have enough data yet to show that the advertisers would come back to the table. "I feel like I have to come over and spank you with a ruler because you are on the cusp of the darkness, the abyss, the evil of going to freaking zero with a bullet," he added.
Almost all the sharks had declined to invest when Agboola revealed that the business model isn't entirely dependent on advertising.
"I want to make sure that one thing is clear. This is a freemium model," Agboola said, referring to a pricing structure where only one tier is free, but users pay a premium to get more functionality or access to different features. "We don't anticipate that all of our revenue is going to come from advertising," he added.
It's at that point that Silicon Valley investor Sacca lost his patience and really laid into the Flag team.