Biz Tips: Shark Tank Recap: Makeup Junkie Bags, Angel Shave Club, Kitty Kasas and Sonnet James

Biz Tips: Shark Tank Recap: Makeup Junkie Bags, Angel Shave Club, Kitty Kasas and Sonnet James

Biz Tip:

Shark Tank Recap: Makeup Junkie Bags, Angel Shave Club, Kitty Kasas and Sonnet James

Guest Shark, Sara Blakely, joined Mark Cuban, Barbara Corcoran, Lori Greiner, and Kevin O’Leary in the Shark Tank to learn more about four featured businesses seeking strategic partners and financial investors. Makeup Junkie Bags, Angel Shave Club, Kitty Kasas and Sonnet James presented their business models and key products to the Sharks in the hopes of getting one of them to bite on their business proposition.

Makeup Junkie Bags Catch A Deal From Lori Greiner

Meredith Jurica came into the Shark Tank seeking $200,000 in exchange for 15% of her business, Makeup Junkie Bags. Her signature product is a multi-functional bag that lays flat. The flat design maximizes storage space, is leak proof, doubles as a clutch and stacks easily for travel. Meredith has the grit and determination that the Sharks are looking for in a business partner. They are also impressed with her financials as sales reached $1.5 million over an 18 month time period. The company is also debt free which is also attractive to the Sharks.

Lori Greiner is the first Shark to make Makeup Junkie Bags an offer. Lori offers Meredith $200,000 as a loan for 5% of her company and $1 per bag in perpetuity. Sara Blakely does not want to see Meredith give up any equity in her company and offers to give her a $200,000 loan with a $1 royalty per bag until the loan is repaid. Kevin O’Leary also extends an offer for $200,000 in exchange for 3% of the company and a royalty of $1.50 per bag until $750,000 is paid back at which time the royalties will go away. Meredith decides to accept Lori’s offer as she told her exactly how she would be present in the partnership which is exactly what Meredith was looking for in a business partner.

Angel Shave Club Walks Away From The Shark Tank Empty-Handed

Iskra Tsenkova and her husband Brian came to the Sharks in hopes of receiving a $300,000 investment for a 10% share of their company, Angel Shave Club. The Angel Shave Club is a subscription shaving service for women that does not charge them a “pink tax” just for being a woman. Women are often charged 13% more for personal care products than men. Iskra would like to see the consumer playing field even–especially when it comes to subscription razor services. This service would send a razor and refillable blades to the users in 2 or 4-month increments depending on the consumer’s replenishment preference.

Although the company has seen $390,000 in sales over the last year and their customers are sticking with them for 4-6 billing cycles, the Sharks are concerned that this business is not sustainable in the event that a big box store or another more prominent subscription service wanted to begin offering a similar service. They also are experiencing problems with their supply chain which is concerning for the Sharks. One of the largest questions that the Sharks are trying to understand is their valuation relative to their churn rate, as well as the financial risk associated with investing in the company. None of the Sharks are prepared to assume the financial risks that they believe are associated with Angel Shave Club and decline to extend offers to Angel Shave Club.

Kitty Kasas Lands A Deal With Lori Greiner

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Nikki Linn and husband Rusty made a roaring entrance to introduce their cleanable, stackable cat shelters, Kitty Kasas. The couple has run a no-kill shelter for 20 years and became frustrated that they could not find a modular, stackable shelter for cats that could be easily cleaned and sanitized. They decided to create their own and have been successful with selling their product on their shelter’s webite. They would like to find a strategic financial supporter that would provide $200,000 in exchange for 20% of their company.

One of the major needs for Kitty Kasas is to help secure a supply change and plastic molder. They also are in need of additional employees for expansion, sales, and marketing. Kevin offers Nikki and Rusty $200,000 for a 33.3% share of their company. His plan is to expand consumer sales. Notorious cat lover, Lori Greiner, also makes Kitty Kasas an offer for $200,000 for 33.3% share. Lori explains that she would like to be an equal partner in their business so that they are all in the trenches together. They counter for 30% and she agrees. Kitty Kasas accept Lori’s offer.

Sonnet James Strikes A Quick Deal With Sara Blakely

Whitney Lundeen, founder of Sonnet James, was seeking $350,000 for 25% equity in her company. This single mom started her business when she realized that women’s apparel choices can hold them back from playing with their children. She designed a versitale line of clothing that could be worn to work, on a date or playing with your kids on the playground. These washable and comfortable clothes help moms to feel put together while also enjoying the comfort of pajamas.

All of Sonnet James’ sales are direct to consumer through their website and they have seen $1.2 million in sales throughout the last year. Whitney has also created a network of moms which is important for the marketing of her brand. The Sharks are concerned with her valuation of the company and the diversity of her product from others in the market that are similar, however, Sara Blakely likes to invest in female entrepreneurs. Sara offered Whitney $350,000 for a 25% share in the company. Whitney quickly accepts before any other Sharks have an opportunity to extend her an offer.

What was your favorite business on this episode of Shark Tank? How did you feel about the business investments and the products mentioned? Would you purchase any of these products or services? Leave your comments below!

Shark Tank airs Sunday at 9:00 EST on ABC.

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