Nohbo Water-soluble Packaging
DEAL
EPISODE SUMMARY
🕓 Air Date: February 19, 2016
Asking For:
$100,000 for 20%
Investor:
Mark Cuban
Deal:
$100,000 for 25%
PRODUCT SUMMARY
Nohbo offers eco-friendly shampoo balls that dissolve in water to eliminate plastic waste.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Benjamin Stern, a 16-year-old from Melbourne, Florida, is the CEO of Nohbo. Passionate about the environment, he was inspired to create an eco-friendly solution after realizing the significant environmental impact of bathroom waste. Supported by his grandmother, Lois (Bubbe), who invested in the business, Benjamin started Nohbo to address the environmental concerns associated with plastic shampoo bottles.
Born into a generation taking environmental issues seriously, Benjamin envisioned a product that could contribute to reducing waste and benefit the world. He embarked on this journey with the support of Bubbe, aiming to make Nohbo a staple in every grocery store in the United States.
The Product
Nohbo revolutionizes hair care by introducing dissolvable shampoo balls that eliminate the need for plastic bottles. The portable Nohbo balls expand and dissolve in water, providing the perfect amount of product for a single use. By removing the outer container, Nohbo not only reduces waste but also proves to be more cost-effective than bottled alternatives.
The process is simple—unwrap the compostable ball, place it under shower water, rub it to create a lather, wash, and rinse. Benjamin emphasizes the environmental impact, stating that the majority of U.S. trash comes from bathrooms, and Nohbo aims to address this issue.
How It Went
The company’s position before Shark Tank
Nohbo is in its early stages, seeking a $100,000 investment for a 20% equity stake. Benjamin and Bubbe have engaged with major corporations like Clorox and Hyatt Hotels, generating interest and potential licensing deals. The product’s patent is pending, but financial constraints hinder the conversion to non-provisional status. The current inventory is limited, with each ball individually hand-pressed by a chemist.
The estimated cost to produce is 6 cents per unit, but Benjamin envisions reducing it to 4 cents. The target market includes not only individual consumers but also potential licensing to major shampoo companies, such as L’Oréal and Pantene.
The Negotiations:
In the negotiation phase, Mark Cuban makes an offer of $100,000 for 25%, emphasizing his experience and resources in patents and the personal care market. Kevin O’Leary offers $100,000 for 20%, with an option to wait for the patent and pursue a licensing deal. Lori Greiner expresses concern about the challenges in educating hotel consumers and declines to invest. Robert Herjavec and Daymond John also decide not to invest.
Mark Cuban and Kevin O’Leary present competing offers, both emphasizing the importance of securing the patent. Cuban proposes a licensing deal with an option for Benjamin to sell to certain sectors independently. Ultimately, Benjamin accepts Mark Cuban’s offer, excited about the prospect of Cuban becoming his mentor. The deal concludes at $100,000 for 25%, marking a significant milestone for Nohbo and its young CEO.
