R. Riveter Handbags
DEAL
EPISODE SUMMARY
🕓 Air Date: February 5, 2016
Asking For:
$100,000 for 20%
Investor:
Mark Cuban
Deal:
$100,000 for 20%
PRODUCT SUMMARY
R. Riveter is a handbag company that empowers military spouses by creating handbags made from upcycled military materials, providing mobile income and employment opportunities.
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Background Story
The co-founders, Lisa Bradley and Cameron Cruse, both military spouses, met in Georgia while their husbands were stationed with the Army. Recognizing the challenges military spouses face due to frequent relocations, they founded R. Riveter with a mission to empower and create mobile income for military spouses.
Inspired by Rosie the Riveter, a World War II icon, they named their company after her, adopting the motto “We Can Do It.” The business focuses on providing employment to military spouses who contribute to the production of handbags made from upcycled military materials.
The Product
R. Riveter’s handbags are crafted from materials like wool blankets, uniforms, and tents, with each bag telling a unique story. The manufacturing process involves military spouses across the country, with different parts and pieces being made in various locations.
The “Support” tag, for instance, is dyed in Colorado, the leather is cut in Georgia, and the liner is made in New York. All these components come together at the company’s shop in North Carolina, creating a product that embodies the spirit of American manufacturing.
The handbags are stamped with the ID of the military spouse who contributed, allowing customers to trace the story behind their bags. Priced at $220, the cost to make a bag is $55.
How It Went
The company’s position before Shark Tank
R. Riveter has experienced significant growth, with almost $300,000 in sales over the last 12 months and $190,000 year-to-date. The target market consists largely of military supporters who understand the value of investing in a community. Currently, 60% of sales occur online, with the remaining 40% from their brick-and-mortar store.
The company’s unique model, combining a social mission with American manufacturing, has garnered attention from customers and media alike. They have invested a total of $9,000 in the business, with minimal external funding. Seeking an investment of $100,000, they aim to use the capital for marketing to further scale the business.
The Negotiations:
The pitch received offers from Mark Cuban and Lori Greiner, both proposing $100,000 for a 20% equity stake. Kevin O’Leary expressed interest but didn’t want to partner with the entrepreneurs. Daymond John and Robert Herjavec opted out, believing the founders could succeed without their assistance. The co-founders considered all offers, expressing gratitude for the support and the chance to share their stories.
Ultimately, they accepted Mark Cuban’s and Lori Greiner’s joint offer of $100,000 for 20%, providing not only the investment but also strategic assistance and credit for inventory. The negotiation showcased the emotional connection between the founders and their mission, emphasizing the significance of empowering military spouses and the broader community impact.
