The Matte Make-up Organizer
DEAL
EPISODE SUMMARY
🕓 Air Date: April 9, 2021
Asking For:
$100,000 for 20%
Investor:
Lori Greiner
Deal:
$100,000 for %
PRODUCT SUMMARY
The Matte is a compact product that unfolds to create an instant counter over a bathroom sink, providing much-needed space for women to get ready while also organizing their makeup and brushes.
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Background Story
Melissa Clayton, the founder of The Matte, hails from Acton, Massachusetts. Prior to launching The Matte, she had already started another successful company specializing in fine personalized jewelry for mothers. With a team of nine people, her first company now operates without her direct involvement.
Melissa conceived the idea for The Matte while working on her jewelry business, recognizing the common problem of limited bathroom counter space for women. This issue led her to develop The Matte, a product that offers a practical solution to this everyday problem.
The Product
The Matte is a versatile product designed to maximize bathroom counter space. It unfolds and lays flat over a bathroom sink, instantly creating a convenient countertop. It can securely hold hairbrushes, makeup, and various beauty products, making the getting-ready process more organized and efficient.
The Matte features small ridges to prevent makeup from falling onto the floor, keeping brushes clean and products in place. Notably, it can support up to two pounds of makeup and accessories.
The product is compact and can be folded down to the size of a tablet for easy storage and travel. It is primarily targeted at women who face the challenge of limited counter space in their bathrooms.
The Matte is available for purchase on Amazon, their official website, and through one third-party retailer, priced at $24.99, with a production cost of $7.
How It Went
The company’s position before Shark Tank
In its three-year lifespan, The Matte has generated approximately $200,000 in sales. The company uses multiple sales channels, including Amazon, its own website, and a third-party retailer. In the previous year, they achieved $85,000 in revenue.
The product has gained traction primarily through word of mouth and collaborations with influencers, as the company has not invested in advertising. The Matte has a utility patent, giving it a competitive edge as there are currently no similar products on the market.
The founder, Melissa Clayton, has successfully managed another business specializing in fine personalized jewelry for mothers, which now operates with a team of nine people. Although The Matte has grown steadily, Melissa decided to seek an investment to accelerate its growth and market presence.
The Negotiations:
Melissa Clayton entered the Shark Tank seeking $100,000 in exchange for a 20% equity stake in her company, The Matte. The initial offers were few, with Lori Greiner stepping up with an offer of $100,000 for a larger equity share of 33.3%. Despite the higher equity stake, Melissa accepted Lori’s offer, recognizing the potential for significant growth through Lori’s expertise and connections, particularly in the areas of branding and licensing.
Melissa explained her vision for The Matte, seeing opportunities in hotels, college dorms, RVs, and more. She expressed her eagerness to bring the product to a broader market. Although Melissa initially sought a lower equity stake, she ultimately valued the partnership with Lori and her belief in the product’s potential more than maintaining her preferred equity position.
The deal was made, with Lori Greiner becoming a significant partner in The Matte, aiming to expand its presence and market reach. The negotiation concluded on a positive note, with both parties excited about the future prospects of the product.
