How Sun-Staches Turned a Tough Shark Tank Deal into $20M Success

Investor: Daymond John
Shark Tank Appearance: October 17, 2014
Offer: $300,000 for 20% stake
Results: Sales soared from $5.7 million to over $20 million.

Entrepreneurs who secure a deal on Shark Tank often leave the set thrilled. Not so for David Levich, Eric Liberman, and Dan Gershon, lifelong friends who launched Sun-Staches in 2011. Despite landing an investor, Levich wasn't celebrating. "We got our asses kicked," he recalls. Back in their trailer, the trio felt they'd made a poor bargain.

They had their sights set on Mark Cuban but partnered with Daymond John instead. Their initial ask was $300,000 for 5% equity; John countered with 20% for the same amount. "We just gave away 20% of our business for peanuts?" Levich wondered.

Minutes later, a knock at the door: a member of John's team and a top executive from a major toy company. "You're in very good hands," the executive assured them. "You should celebrate."

He was spot on. Soon after, Sun-Staches—already available online and at retailers like Toys "R" Us and Party City—landed coveted licensing deals with Marvel, Nintendo, and Warner Bros. Studios. "Daymond was instrumental in securing those," Levich says. "He opened doors, negotiated strong terms, and leveraged his connections."

Some view Sun-Staches' $20 million in sales of fun mustache sunglasses as one of Shark Tank's biggest surprises. Even John nods to the appeal: "The world loves simple, silly things like Snuggies or Sun-Staches—affordable items that bring joy and distract from daily stresses."

For their pitch, the founders customized samples: a football helmet for John, cowboy for Robert Herjavec, black cat for Lori Greiner, devil for Kevin O'Leary, and pixie for Cuban. As the Sharks (minus Cuban, who passed) tried them on, the room lit up. "It was instantly a party," John said. "Proof of concept right there."

Unlike many Shark Tank alumni, Levich, Liberman, and Gershon were ready for the post-episode surge, with inventory and infrastructure in place. Knockoffs proved the real challenge. "We didn't expect so many copycats worldwide," Levich notes. They built an in-house team to combat IP theft, removing over 1,000 fakes from Amazon and eBay, and halting sales by big retailers—leading to arrests in Hong Kong.

"We argue constantly, but that's because we make all decisions by consensus, not majority rule."

"If we don't protect our IP internationally, we won't have a business," Levich emphasizes. Innovation is key too: Five in-house designers create concepts, with 20-30% advancing to production (each mold costs $10,000-$20,000). Sun-Staches now offers 500 models, with Batman as the top seller.

Maintaining a strong team is toughest. "It's the hardest thing we do," Levich admits. "We recently hashed out a new sunglass line over sushi—it demanded a new distribution network. Without full buy-in from Eric and Dan, we wouldn't have moved forward."

The trio prioritizes fairness. "We support each other to build a thriving business while treating customers, suppliers, and employees right," Levich says. "Our goal is peace of mind, not billions."

This article originally appeared in the November 2017 issue of SUCCESS magazine.