'Shark Tank' contestant gets offers from four judges — makes two of them team up for $250,000 deal
Getting a single deal on "Shark Tank" is challenging, but entrepreneurs who pull it off can make their know how tough it is to get a single offer on the show. That's why when the founder of Kinfield, Nichole Powell, got four offers, she was naturally overwhelmed. However, Powell used her interest in her eco-friendly, chemical-free sunscreen and bug repellents to her advantage to get the deal of her choice. While the big Sharks offered her blood sucking royalty deals, she got Barbara Corcoran and guest SharkTony Xu to team up for a straight $250,000 equity deal.
She began her pitch by telling the Sharks that she grew up in Minnesota, where the mosquito is the state bird, and in her childhood, her parents covered her with icky, chemical-laden bug spray and greasy sunscreen every time she stepped out. When she found herself using the same products years later, she decided to create an eco-friendly, chemical-free line of bug repellent and sunscreen, 'Kinfield'.
She introduced her first product, After Hours, a bug spray made from citronella, lemongrass, and vanilla that offered protection from mosquitoes for three hours. She then displayed the brand's repellent wipes, recovery products, and a line of sunscreen as well. As the sharks looked at the samples, all of them fell in love with the smell and feel of the products. "This smells so good, I can't believe it's a bug spray," Corcoran said.
On the other hand, Kevin O'Leary was more concerned about the numbers. Since she asked for $5 million, he asked Powell to share her sales numbers. The entrepreneur shared that the brand launched in 2019, and in the year of filming (2022), she had done $1.5 million and was on track to close the year with $2.1 million in sales. However, she admitted that the company hadn't made profits yet, but they were positioned to become profitable in the next year and a half.
Powell further added that she had a 75%-80% margin, but her customer acquisition cost was a whopping $26. She told the Sharks that she needed the investment to take the product to retail and bring the cost down. With this, Mark Cuban made the first move, expressing concerns with her plan. He told the entrepreneur that she would need to raise a lot more money, and retail wasn't a great idea, so he was out.
Next was Corcoran, who saw things differently and was ready to make an offer. She put up $250,000 for 10% but with a $2 royalty on each product sold until she’s paid back. Sensing a royalty deal, O'Leary jumped in too, offering $250,000 for 5% with a $1.50 royalty until he recoups $750,000. The third offer came from the queen of QVC, Lori Greiner, who bragged about her success with the 'Bug Bite Thing' before offering $250,000 for 5% with a $4 per unit royalty until she gets her money back.
However, at the very end of the panel, guest Shark and the CEO of DoorDash, Xu, saw how important Powell's margins were. Thus, he offered $250,000 for a straight equity deal of 10%. "No royalty, straight equity, clean deal, and no ratchets. Let's reinvest back in the business and go for it!" he said.
After this, Corcoran decided to revise her offer and match Xu. Powell then asked if they would team up together, and hearing this, Greiner decided to drop out. After Xu and Corcoran agreed to team up, Powell didn't waste time accepting the deal.
According to "Shark Tank" Recap, the deal closed after the show, and Powell successfully brought her products to retail in stores like Credo, Goop, Grove Collaborative, Free People, and more. The company also expanded its product line with anti-chafe balm, pH-balancing deodorant, hydrating face masks, and more eco-friendly products.
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