Shark Tank's Robert Herjavec Reveals How His Family's Struggles Drove Him to Build a $600M Fortune

Shark Tank investor and cybersecurity entrepreneur Robert Herjavec revealed in a recent episode of the YouTube show Hustle Meals that witnessing his parents' financial struggles as a child motivated him to work tirelessly and earn more money. His sole goal was to lift his family out of poverty, not to amass wealth for its own sake.

'I just didn't want to be poor,' Herjavec said on the talk show. Today, he is estimated to have a net worth of approximately $600 million (£454.7 million).

Born in a rural village in former Yugoslavia, Herjavec's early life was marked by hardship. 'It was really hard, only in hindsight. I didn't know we were poor until we came to Canada,' he explained.

Immigrant Struggles Shaped His Financial Drive

Herjavec's father was imprisoned several times for speaking out against the Communist government. His family eventually moved into a friend's basement in Toronto, where they faced ongoing difficulties. These early challenges served as the catalyst for Herjavec's determination to succeed.

'The struggles after coming to Canada are what made me want more,' he said. 'You have to have the ability to take care of yourself.'

His primary motivation was to ensure his parents' wellbeing. 'I just didn't want to be taken advantage of. I didn't want to feel like I wasn't in control of my own destiny and my own world. And it wasn't for me at that age — it was for my parents,' he explained.

Herjavec recounted an incident where his mother was duped into buying a vacuum cleaner through a monthly payment plan, which accounted for a third of their rent. 'Some crappy salesman conned my mom into signing this agreement,' he said. Such experiences made him realise the importance of financial security to protect loved ones.

Overall, Herjavec believes that in North America, you don't need to be a millionaire, but you should have enough money to care for yourself and your loved ones.

Herjavec's Path to Business Success

Herjavec's journey was anything but traditional. Lacking formal training in business or accounting, many doubted his potential as an entrepreneur. Nonetheless, he developed his skills and technical expertise to build leading cybersecurity firms.

He scaled these companies to impressive heights before selling them to global tech giants and private equity firms. His breakthrough came in 2000 with the sale of Brak Systems, an internet security software integrator, to AT&T Canada for nearly $30.2 million (£22.8 million). Over the past two decades, Herjavec has followed a similar pattern—building and selling multiple companies to industry giants such as AT&T and Nokia.

Today, Herjavec advises governments and enterprises on cybersecurity strategies. He has also authored several books, continues to invest in various businesses, and mentors aspiring entrepreneurs. To date, he has invested over $16 million (£12.1 million) across 57 deals on Shark Tank.

Most Notable Investments

One of Herjavec's most successful Shark Tank deals is a $100,000 (£75,783) investment for a 10% stake in Tipsy Elves, a holiday-themed apparel company. By May 2023, Tipsy Elves had recorded $317 million (£240.2 million) in cumulative sales.

Herjavec's story exemplifies how perseverance, driven by a desire to protect and uplift his family, transformed him from an immigrant facing hardship into a successful entrepreneur and investor worth hundreds of millions.

Herjavec's journey from poverty to wealth highlights the importance of resilience, adaptability, and a clear motivation to succeed. His story continues to inspire entrepreneurs worldwide, demonstrating that even in the face of adversity, determination and hard work can lead to extraordinary success.

Note: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research or consult a professional before making investment decisions.