Heart Pup Dog Carrier Scarf
DEAL
EPISODE SUMMARY
🕓 Air Date: October 3, 2014
Asking For:
$25,000 for 10%
Investor:
Daymond John
Deal:
$50,000 for 40%
PRODUCT SUMMARY
Heart Pup offers functional, fashionable, and comfortable dog carriers made of an Italian cashmere-wool blend. The carriers feature an ergonomic design with a large outside pocket for personal items and a clip for the puppy's harness or collar.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Anastasia Balyura, the entrepreneur behind Heart Pup, entered the Shark Tank seeking an investment of $25,000 for a 10% equity stake in her company. The backstory of Heart Pup unfolds with Anastasia’s journey through law school, where her constant companion was none other than her beloved dog, Trixie. Anastasia’s desire to keep Trixie close during her demanding law school hours sparked the idea for the world’s best dog carrier. During her final semester of law school, Anastasia faced the challenge of balancing massive law books and the need to hold Trixie simultaneously.
This struggle led her to conceive a solution that not only catered to the practical aspects of carrying a dog but also infused a sense of fashion and luxury. Her creation, Heart Pup, was born out of the necessity to balance academic commitments with the love for her canine companion. An accidental entrepreneur, Anastasia embarked on this venture, combining her legal studies with her newfound passion for creating functional, fashionable, and comfortable dog carriers. The turning point came when her patent law professor enlightened her about imminent changes in patent laws, prompting Anastasia to promptly post her invention online and secure common-law patent protection.
Based on this legal foundation, Heart Pup emerged, offering carriers handmade from an Italian cashmere-wool blend. The carriers feature an ergonomic design, distributing weight evenly across both shoulders, with a large pocket for personal items and a clip for the puppy’s harness or collar. The product not only reflects Anastasia’s innovative spirit but also showcases her commitment to providing a stylish solution for pet owners who share a deep connection with their furry friends.
The Product
Heart Pup, crafted by Anastasia Balyura, stands out as a premier dog carrier designed to meet the needs of pet owners seeking a blend of functionality, fashion, and comfort. Made from an exquisite Italian cashmere-wool blend, the carriers deliver a luxurious feel and aesthetic appeal.
The ergonomic design ensures a snug and comfortable wear by distributing weight evenly across both shoulders. A large outside pocket offers practicality, allowing pet owners to carry essentials such as phones, wallets, and keys conveniently. The carrier’s versatility is enhanced by a clip inside that attaches to the puppy’s harness or collar, providing security for active or jumping pets.
Priced at $138 each, Heart Pup positions itself as more than just a pet accessory – it’s a fashionable solution for pet owners who wish to integrate their love for their furry friends seamlessly into their lifestyle. The carriers are available for purchase primarily through online channels, emphasizing ease of access for customers.
The fashion-forward approach, combined with the practical features, makes Heart Pup an attractive choice for those who prioritize both style and functionality in their pet accessories. With healthy profit margins and a successful track record, Heart Pup offers a unique and sought-after product in the pet accessory market, catering to pet lovers with a taste for sophistication and convenience.
How It Went
The company’s position before Shark Tank
Heart Pup demonstrated a robust performance and a promising position in the pet accessory market. Founded by Anastasia Balyura, the company had achieved total sales of $135,000, showcasing a significant traction within a relatively short period. Anastasia, an accidental entrepreneur, successfully combined her law school background with her passion for pets to create a unique and niche product. Heart Pup primarily sold its carriers through online channels, relying on a combination of internet sales and word of mouth to drive business.
The company targeted a diverse customer base, with 30% of customers being men, expanding beyond the stereotypical market for pet accessories. Anastasia emphasized the doubling sales each year, indicating a healthy and upward trajectory for the business. During the pitch, Anastasia expressed the need for a $25,000 investment to outsource production to a factory, allowing her to focus on running the business more efficiently. Currently, the production was a manual process handled by Anastasia herself. The cost of production was revealed to be $16 per carrier, leading to impressive profit margins.
Anastasia sought strategic partnerships and considered the Sharks as potential buttons to provide valuable insights and expertise. While Robert Herjavec and Mark Cuban opted out, Daymond John recognized the potential in the pet industry and made a successful deal, offering $50,000 for a 40% equity stake. This investment was crucial for Heart Pup to scale its production and operations. As for the company’s structure, additional details about specific partners, wholesalers, and available capital were not provided during the pitch. However, the successful deal with Daymond John indicated a positive outlook for Heart Pup, leveraging the expertise and network of a Shark to propel the business further into the pet accessory market.
The Negotiations:
The negotiations for Heart Pup in the Shark Tank were a rollercoaster of interest, concerns, and ultimately, a successful deal. Anastasia Balyura entered the Tank seeking a $25,000 investment for a 10% equity stake in her dog carrier business. The pitch attracted attention with its unique combination of fashion, function, and comfort for pet owners. Robert Herjavec and Mark Cuban expressed early concerns about the scalability and personal compatibility of the product, leading them to bow out of the negotiations. Lori Greiner and Kevin O’Leary followed suit, citing the niche nature of the product.
However, Daymond John saw potential in the pet industry and recognized the success Anastasia had achieved. He offered a deal of $50,000 for a 40% equity stake, effectively doubling the investment amount in exchange for a larger share of the company. While Mark Cuban and Lori Greiner remained unconvinced and opted out, Anastasia eagerly accepted Daymond’s offer, securing a strategic partnership with the FUBU founder. Mark Cuban’s concerns about being driven crazy by the intricacies of the pet industry and dealing with the product intricacies became a point of discussion, leading to his decision to opt out.
Despite initial hesitations and differing visions among the Sharks, Daymond John’s offer provided Anastasia with the necessary funding and expertise to take Heart Pup to new heights. The negotiation showcased the challenges of selling a niche product but also highlighted the importance of finding the right partner who shares the founder’s vision. In the end, the deal with Daymond marked a successful outcome for Heart Pup in the competitive world of the Shark Tank.
