Shark Tank US | Hiccup Has Figured Out How To Be Sustainable On Race Day

Summary

Christina pitches her innovative startup, Hiccup, to the Sharks, seeking $200,000 in exchange for 10% equity. Hiccup offers a sustainable solution for hydration at running events by providing reusable silicone cups that are rented, collected, and cleaned for reuse. While the idea aims to reduce waste and make marathons more eco-friendly, the Sharks question the scalability and profitability of the business. Despite Christina's passion and unique concept, the investors feel it’s too small to generate large returns, and all ultimately decide to pass on the deal, though they commend her entrepreneurial spirit.

Takeaways

• 😀 Christina is seeking $200,000 for 10% of her company, Hiccup, which offers a sustainable solution for hydration at marathons.
• 😀 Hiccup provides reusable silicone cups for hydration stations at running events, aiming to reduce cup waste by collecting, cleaning, and reusing them.
• 😀 The ultimate goal of Hiccup is to eliminate cup waste in the running industry altogether, promoting sustainability at marathons.
• 😀 The service charges 15 cents per cup, with costs dropping to 10 cents per cup for larger orders after 10,000 cups.
• 😀 Christina’s company made $67,000 in sales last year, and the largest order she fulfilled was 50,000 cups, generating $6,500 in revenue.
• 😀 Christina envisions a huge market for reusable cups, targeting world major marathons with a potential of 2 million cups.
• 😀 The idea for Hiccup came after Christina realized the massive waste of cups during marathons, inspired by her experience on a plane after running a marathon.
• 😀 Christina sees a partnership with major sponsors as a key opportunity for growth, including beverage and snack companies.
• 😀 The business currently operates solo, with Christina handling most of the operations, including cleaning the cups.
• 😀 The Sharks are hesitant due to the perceived limited scalability of the business and its niche market, despite recognizing the environmental impact and potential sustainability benefits.
• 😀 Despite being impressed by Christina's determination, the Sharks ultimately decide to pass on the investment, believing the business is more suited for gradual, personal growth rather than large-scale expansion.

Q & A

What is Hiccup's business model?

Hiccup provides a reusable cup service for hydration stations at running events. They deliver silicone cups, collect them after the race, clean them, and reuse them at future events. The goal is to eliminate cup waste in the running industry.

How much does Hiccup charge per cup?

Hiccup charges 15 cents per cup, and after renting out 10,000 cups, they lower the cost to 10 cents per cup for all future cups.

How does Hiccup's cost compare to paper cups?

A paper cup costs around 7 cents each. Hiccup's cost per cup is higher at 15 cents, but it reduces to 10 cents after 10,000 cups are rented.

What was Hiccup's sales performance in the previous year?

In the previous year, Hiccup achieved $67,000 in sales.

What is the largest number of cups Hiccup has sold to a race?

The largest order Hiccup has fulfilled is 50,000 cups, generating $6,500 in revenue.

What is Christina's vision for the future of Hiccup?

Christina envisions Hiccup growing to the point where it can supply 2 million cups for world major marathons like the Boston, Chicago, and London marathons.

How did Christina come up with the idea for Hiccup?

Christina came up with the idea after running a marathon in California and realizing how many cups were wasted during the event. She compared this to the waste created by beverage carts on planes, which led her to think of a reusable cup solution for marathons.

Has Hiccup worked with any major marathons yet?

Hiccup piloted its service at the Chicago Marathon but has not yet established contracts with major marathons like Boston.

Why hasn't Christina pursued sponsorship deals for Hiccup's cups?

Christina explained that she has been focused on the operational aspect of washing and managing the cups and hasn't had the time to pursue sponsorships.

What is the primary challenge Hiccup faces in scaling its business?

The primary challenge is that Hiccup's business model is not considered highly scalable by the investors. They see it as a niche business, serving a specific market, which limits the growth potential.