'Shark Tank' offers a 6-figure deal to entrepreneur who started her hoodie brand with just $500
“Shark Tank” gained popularity among audiences after inspiring them to believe in their ideas and entrepreneurial instincts, by showcasing business owners who turned their startups into major brands through funding from the show. The journey was an emotional rollercoaster for Philomena Kane, as she made it to "Shark Tank" after fighting the odds to establish her company, Kin Apparel. She started the brand with only $500 but by the time she was on the show, the company had reported sales worth $355,000. She wanted $200,000 for 10% equity in her company and those were always going to be hard numbers to get approved by the sharks.
Kin Apparel is a unique clothing company that focuses on haircare by making satin-lined hoodies. Kane explained how most hoodies are made of cotton, a material that sucks moisture out of one’s hair leaving it all dry and frizzy. The 26-year-old got the idea of creating satin-lined hoodies in college when her hair was growing back after she had chopped it off due to stress as per CNBC Make It.
“Consider the girls with big beautiful curls who can’t find a hood big enough to fit her hair, or the guy with [dreadlocks] trying to stop lint balls from forming on his hair,” Kane said, explaining her target audience. The company clearly meant a lot to her since she left an opportunity to study at the prestigious Columbia University to make the business grow. While her pitch was fantastic, she did not get the response that she wanted at first.
Kevin O’Leary, Barbara Corcoran, and Mark Cuban all stepped back for various reasons. That left Lori Greiner and guest shark Emma Grede, who made a combined offer demanding 30% equity for the sum that she asked. This made the young entrepreneur step back a little but Grede was quick to win back the budding businesswoman. “You’re giving away something, absolutely,” she said. “Think about what you get in return.” And that was enough to convince Kane.
Apparel on “Shark Tank” isn't uncommon but few such products have had a better pitch than Quikflip. The company which was owned by jiu-jitsu trainer Rener Gracie had every single shark entertained, all thanks to Gracie’s showmanship. What he pitched was not a single product but his entire line of hoodies, turtle necks, and raincoats that can be folded into a backpack. When you’re outside and you need to take your hoodie or raincoat off but you don’t have anything to put them in, that’s when these products come in handy. The idea is as innovative as it gets and Gracie recognized a crucial gap in the market. The Sharks seemed visibly impressed and Lori Greiner's deal was the one he went with. He also had an offer from Mr. Wonderful but chose not to take it.
Greiner offered $250,000 and another $250,000 in the line of credit for 10% equity in the company. Gracie had to think about the offer since he had asked for $500,000 for 5% equity but realized it was the best option. In the end, it all turned out great for everyone involved.
