Do The Sharks Believe that Stakt Is Investable? | Shark Tank US | Shark Tank Global

Summary

Two best friends, Millie and Taylor, present their innovative foldable yoga mat called Stacks to the Sharks, seeking $100,000 for 10% equity. Stacks is a versatile mat that offers extra cushion, folds into a block for exercises, and lays flat, making it more supportive than traditional mats. Despite initial skepticism from some sharks, Lori Greiner offers $100,000 for 15% equity with a royalty structure. After negotiations, they settle on 15% equity and a $0.75 royalty per unit sold, securing Lori as a partner to scale their business.

Takeaways

• 💪 The entrepreneurs, Millie and Taylor, are best friends from New York, seeking $100,000 for 10% equity in their company.
• 🧘 They developed a new type of foldable mat called 'Stacks,' designed for versatile workouts and extra support during exercises like Pilates, yoga, and strength training.
• 🧱 The Stacks mat can be folded to provide extra cushioning or transformed into a block for exercises like tricep dips and planks.
• 🏋️‍♀️ They saw a gap in the market because traditional yoga mats lack the support and versatility needed for the evolving workout routines during the pandemic.
• 📦 The cost to produce the mat is $14.90, and they sell it for $86, placing it in the premium segment of the market.
• 📈 In 6.5 months, they achieved over $110,000 in sales without spending any money on marketing, relying on building a community through content.
• ♻️ The mat is made of non-toxic, non-porous EVA foam, which competes with other mats in the $70 to $130 price range.
• 💰 One Shark offers $100,000 for 15% equity with an additional $1 royalty per unit sold until the investment is recouped.
• 💼 Millie has a background in sales and startups, while Taylor has experience in product management for fintech, giving them complementary skill sets for the business.
• 🎉 The entrepreneurs accept Lori's offer of $100,000 for 15% equity with a 75-cent royalty per unit, choosing her as their partner to help scale the business.

Q & A

What product are Millie and Taylor presenting to the sharks?

Millie and Taylor are presenting 'Stacks,' a versatile yoga mat with a unique foldable design that provides extra support and can be transformed into a block for various exercises.

What is the purpose of the Stacks mat according to the founders?

The purpose of the Stacks mat is to offer additional support and versatility for exercises beyond yoga, such as strength training, Pilates, and sculpting. It can be folded to provide more cushioning or used as a block for various workouts.

How much are Millie and Taylor asking from the sharks?

Millie and Taylor are asking for $100,000 in exchange for 10% equity in their company.

What is unique about the Stacks mat compared to other foldable mats?

The Stacks mat is unique because it combines the functionality of a standard yoga mat with the added versatility of foldability. It is thicker than typical yoga mats, always lays flat, and can be folded to offer extra support or used as a workout block.

What are the production costs and retail price of the Stacks mat?

The Stacks mat costs $14.90 to produce, lands at $21.50 for Millie and Taylor, and is sold for $86.

How much in sales have Millie and Taylor achieved in their first six and a half months?

Millie and Taylor have achieved a little over $110,000 in sales in the first six and a half months without any investment in marketing.

What concerns did some of the sharks raise about the product?

Some sharks expressed concerns about the competition in the fitness mat market, the need for constant customer acquisition since it's not a repeat purchase product, and potential conflicts with existing investments in similar companies.

What was Lori's final offer to Millie and Taylor?

Lori's final offer was $100,000 for 15% equity and a 35-cent royalty per unit sold until she recouped her investment. After negotiations, she agreed to this offer.

What did Millie and Taylor initially propose in their counteroffer to Lori?

Millie and Taylor proposed $100,000 for 20% equity without the royalty structure, as they were concerned that the royalty would siphon growth.

What is the material used for the Stacks mat, and how does it compare to other yoga mats on the market?

The Stacks mat is made from EVA foam, which is non-toxic and non-porous. It competes in the premium segment of the yoga mat market, where prices range from $70 to $130. This positions it against cheaper PVC mats, which are made from toxic materials.