SwipenSnap Diaper Cream Applicator
DEAL
EPISODE SUMMARY
🕓 Air Date: January 22, 2021
Asking For:
$120,000 for 10%
Investor:
Kevin O'Leary, Lori Greiner (50/50)
Deal:
$120,000 for 50%
PRODUCT SUMMARY
SwipenSnap is a patented one-hand cream applicator designed to simplify the process of applying diaper cream to babies, making it more convenient for parents.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Alina Kravchenko, the founder of SwipenSnap, hails from Ukraine and moved to the United States with her family in pursuit of the American dream. She grew up with a strong belief in the opportunities that the U.S. offered. Alina came up with the idea for SwipenSnap when she became a young single mom and struggled with the challenges of applying diaper cream with one hand while holding her baby.
Recognizing the need for a solution, she developed SwipenSnap, the world’s first patented one-hand cream applicator. Despite facing financial constraints and challenges in obtaining a patent, Alina persevered for a decade to bring her product to market.
The Product
SwipenSnap is a diaper cream applicator that simplifies the process of applying diaper cream to a baby’s skin. It consists of a suction cup-based lid that attaches to any hard surface and an applicator tube.
Users attach the applicator tube to their preferred diaper cream, pull it from the suction cup-based lid, squeeze the desired amount of cream, and swipe it onto the baby’s skin—all with just one hand. The applicator is designed to be gentle and soft, allowing for precise control over the amount of cream applied.
SwipenSnap offers several benefits to parents, including convenience, ease of use, and mess reduction. It eliminates the need to struggle with holding a baby with one hand while applying cream with the other, making diaper changes quicker and less messy.
How It Went
The company’s position before Shark Tank
SwipenSnap had faced challenges in its early years, with limited sales and a lengthy patent approval process. Alina had sold approximately $15,000 worth of the product over the course of two years, primarily through organic online sales. Her initial price point was $10 but had increased to $20. Alina had secured an angel investor who invested $60,000 for a 5% stake in the company.
She had also been working part-time for her investor to support her income. The company had limited funding and resources due to her status as a single mom with limited connections. While SwipenSnap had received interest from retailers, Alina chose not to enter retail distribution at that time. Instead, she conducted market research to improve the product based on customer feedback.
The Negotiations:
In the Shark Tank, Alina initially asked for $120,000 for 10% of her company. Kevin and Lori offered the exact amount she requested but for a combined 50% equity in the company, with Kevin wanting 100% ownership of the patent for other uses. Daniel expressed interest in partnering as well, initially at 33.3%, but later modifying his offer to 25% with Lori taking 25% and him and Alina being 50/50 partners.
Eventually, Kevin and Lori teamed up, offering Alina $120,000 for 50% of the company and exclusive rights to the patent for other uses. After some negotiation, Alina accepted their offer, excited about the prospect of working with two experienced Sharks who could help her commercialize her product and explore licensing opportunities.
