A shocking and embarrassing moment on the pitch competition show “Shark Tank” in 2015 turned into a multi-million-dollar success story. When Kevin O’Leary called two Black women entrepreneurs “colorful cockroaches” during their pitch, no one could have predicted how thoroughly they would prove him wrong. Melissa Butler and Rosco Spears had come to the show seeking $125,000 for their cosmetics company, The Lip Bar. The cruelty-free lipstick brand, offering unconventional colors like purple and green, was met with immediate skepticism from the sharks. The Lip Bar Founders Proved Shark Tank Judge Wrong After He Passed on Investing and Called Them ‘Colorful Cockroaches’ (Screenshots: YouTube) O’Leary first said, “This is a new innovation. I can see a massive market share in the clown market.” “The chances that this is a business are practically zero,” O’Leary declared. “You can’t get a share, if anybody thought you could sell purple or green lipstick they’d do it.” He added, “And they would crush you like the colorful cockroaches you are.” The “colorful cockroaches” comment sparked immediate outrage on social media. “‘Colorful cockroaches’ was actually so egregious. He’s on my ‘eat the rich’ list. I will flay him,” one person tweeted. Another wrote, “GENUINELY! i literally f—king gasped when he called them that. Genuinely one of the nastiest f—kin people on the planet and he will be among the first to go when the war begins.” The reactions continued to pour in, with viewers noting, “Mark knew it was wild as soon as he heard it lol,” and another declaring it was a “Swear it was a slur.” Speaking to CNBC’s “Make It,” Butler revealed how deeply the comments hurt, calling them “really cruel.” However, she refused to let the rejection derail her vision, saying, “At the end of the day, if I stopped my business after one ‘no’ — even a public ‘no’— then maybe I shouldn’t have started.” Butler said, “I couldn’t allow someone else to be the authority on my dream.” That determination transformed The Lip Bar from a rejected “Shark Tank” pitch into a beauty industry success story. As one X user recently pointed out, “Do y’all remember the two black women who were compared to ‘colorful cockroaches’ on Shark Tank? Their brand is now available in 1000+ Target stores and is valued at an estimated $15 million,” before sharing a video update from the founder. Do y’all remember the two black women who were compared to ‘colorful cockroaches’ on Shark Tank? Their brand is now available in 1000+ Target stores and is valued at an estimated $15 million. pic.twitter.com/F2xdLV1sGZ— Pop Culture News Unlocked (@popnewsunlocked) September 4, 2023 The company recently secured $6.7 million in seed funding from Pendulum, The Fearless Fund, and Endeavor. Pendulum’s co-founder and CEO Robbie Robinson praised the company, stating, “TLB’s tremendous success is a direct testament to Melissa Butler’s dedication to building an innovative house of brands,” according to Forbes. Arian Simone, general partner and co-founder of Fearless Fund, added, “I have personally witnessed Melissa’s journey from leaving Wall Street to the inception of TLB and the subsequent execution that has turned TLB into a first-class beauty company revolutionizing the variety of colors and bold lips for women of color.” Butler has specific plans for the new funding. “We plan on growing our team and improving our ability to better service the needs of our consumers across different divisions because we understand how experience and expertise can spur growth quickly,” she said in 2024. She attributes their success to having a strong sense of purpose. “When you’re starting a business, you have to have a really strong ‘why’ and a really strong purpose, because you’re always going to be told no, you’re always going to face challenges,” she explained. Even O’Leary eventually admitted his mistake. In an interview with “The Breakfast Club,” he said, “I’m proud of them for taking the heat, I’m proud that they’re entrepreneurs that are successful, and it’s a wonderful thing to see that happen.” He added, “They were facing an almost impossible task because going into the cosmetics industry is so difficult to get market share, but they pulled it off so, look, you got to applaud them, there’s no question about it.” With just $2 million in funding, Butler has flourished, launching Thread Beauty and redefining beauty standards. Looks like those “colorful cockroaches” turned out to be butterflies, soaring high while O’Leary stays grounded, proving yet again that underestimating visionaries can really bug you. ‘Swear It Was a Slur’: Shark Tank Judge’s Disturbing Interaction Calling Two Black Female Entrepreneurs ‘Colorful Cockroaches’ Resurfaces