evRewares – Plastic Adhesive Tie
DEAL
EPISODE SUMMARY
🕓 Air Date: January 13, 2015
Asking For:
$100,000 for 30%
Investor:
Mark Cuban
Deal:
$200,000 for 100%
PRODUCT SUMMARY
evREwares designs and manufactures wearable fabric sticker accessories, including their flagship product, the Sticky Tie, aimed at adding instant fun to any occasion.
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Background Story
Founded by Ellie Brown and Becca Nelson, evREwares is a company born out of a shared passion for design and a desire to infuse everyday life with a sense of fun and creativity. The founders present a story that reflects their journey through the ups and downs of entrepreneurship. Ellie and Becca, two sisters with an entrepreneurial spirit, embarked on a three-year adventure to bring their vision to life. Drawing from their backgrounds in design and fueled by a determination to create something unique, they conceptualized wearable fabric sticker accessories.
The idea for their flagship product, the Sticky Tie, was conceived as a solution to add instant flair to any occasion, transforming ordinary T-shirts into extraordinary expressions of individuality. The founders’ journey reflects the emotional rollercoaster of entrepreneurship, with moments of triumph and setbacks. Despite facing challenges, such as a delisting from major retailers due to sell-through issues, Ellie and Becca remained committed to their creation.
Their resilience is evident in their pursuit of a business strategy that aligns with market demands and consumer awareness. The sisters’ background experiences, marked by a blend of creativity and business acumen, became instrumental in navigating the competitive landscape. As they pitched their product on Shark Tank, their genuine enthusiasm for design and their emotional connection to the brand shone through.
The Product
evREwares’ flagship product, the Sticky Tie, stands as a unique and innovative accessory designed to add an element of fun and creativity to everyday attire. The tie is a wearable fabric sticker that can be easily affixed to ordinary T-shirts, instantly transforming them into extraordinary pieces. Its primary appeal lies in its reusability, tear-proof nature, and residue-free application.
The Sticky Tie works by peeling off the backing and sticking it onto any garment, creating a personalized and customizable fashion statement. It offers versatility for various occasions, turning a plain white T-shirt into a party shirt or an instant black-tie formal attire. The ties are not only eye-catching but also durable, ensuring they won’t tear or lose their shape, even with repeated use.
The pricing reflects the product’s premium quality, emphasizing its reusable and exclusive material. The founders envision a product that not only adds a touch of whimsy to wardrobes but also aligns with sustainability goals, as the ties can be wiped clean and worn again and again. The Sticky Tie’s design and functionality make it an attractive accessory for those seeking a playful and customizable fashion experience.
How It Went
The company’s position before Shark Tank
evREwares, despite facing challenges, has maintained a relatively healthy position in the market. The company has strategically partnered with major retailers such as Party City and The Container Store, showcasing the appeal and market potential of their product, the Sticky Tie. These partnerships reflect the initial success and recognition the brand garnered within the retail landscape. Wholesalers play a significant role in evREwares’ distribution network, with the company collaborating with major retailers to ensure widespread availability of their products.
However, a notable setback occurred when the company faced a delisting from these retailers due to sell-through issues. This raised concerns about consumer awareness and acceptance of their innovative wearable fabric sticker concept. Customers of evREwares are individuals seeking a creative and customizable approach to fashion. The appeal spans across those looking to express themselves uniquely during various occasions, from casual gatherings to formal events. The company’s challenge lies in increasing consumer awareness and overcoming the novelty barrier associated with their distinctive product.
Funding for evREwares has likely come from a combination of sources, including initial investments from the founders, potential loans, and, if applicable, revenue generated from sales. The founders mentioned a conscious decision to reassess their strategy, indicating that the company might be self-funded or exploring alternative funding avenues. Profits and losses for evREwares have seen fluctuations. With an initial peak in sales at $300,000, the company experienced a decline, projecting sales of only $50,000 for the current year. The founders attributed this decline to a deliberate decision to slow down operations and reevaluate their approach, indicating a strategic move to ensure long-term sustainability.
The Negotiations:
In the “Shark Tank” episode featuring evREwares and their Sticky Tie product, the negotiations unfolded with a mix of excitement, skepticism, and ultimately, a historic moment in the show’s history. Ellie Brown and Becca Nelson, the founders of evREwares, entered the Tank seeking $100,000 for a 30% equity stake in their business. As the sisters presented their wearable fabric sticker concept, the Sharks raised concerns about the product’s viability and the company’s recent decline in sales. Kevin O’Leary expressed skepticism about the business, calling it a “howling dog from hell” and ultimately declaring himself out.
Other Sharks echoed concerns about the product’s pricing and market appeal. Mark Cuban, known for his straightforward approach, made a surprising turn in the negotiation. Instead of offering a deal for a portion of the equity, he proposed a unique arrangement — $200,000 for the entire business. Mark saw potential in the product but expressed doubt about the founders’ ability to run the business effectively. The negotiation took an emotional turn as Ellie and Becca grappled with the decision to let go of their creation.
After a brief deliberation, the sisters accepted Mark’s offer, marking a significant moment in “Shark Tank” history. The negotiation concluded with Mark Cuban acquiring the entire evREwares business for a $200,000 investment, a departure from the typical equity-for-investment deals seen on the show. The founders’ emotional attachment to their creation and Mark’s practical assessment of the business dynamics created a unique and memorable negotiation, demonstrating the unpredictable nature of entrepreneurial ventures in the Tank.
