180 CUP- Disposable Cup With Built-in Shot Glass
DEAL
EPISODE SUMMARY
🕓 Air Date: November 1, 2013
Asking For:
$300,000 for 15%
Investor:
Daymond John
Deal:
$300,000 for 25%
PRODUCT SUMMARY
The 180Cup is a dual-function cup that acts as a standard drinking cup when right-side up and as a shot glass, container, or measuring cup when flipped 180 degrees, offering versatility and convenience.
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Background Story
Solomon Fallas, the founder of 180Cup, was inspired to create the innovative product during a visit to his brother’s college party. Witnessing the widespread use of the standard red party cup, Solomon recognized an opportunity to improve upon this ubiquitous item. Despite not having attended college himself, he saw the potential for innovation and identified a gap in the market for a versatile party cup. Fueled by his entrepreneurial spirit and keen observation, Solomon embarked on the journey to develop the 180Cup.
With a background in business and a determination to make his mark in the industry, he invested time and resources into researching and designing a cup that would offer more functionality and convenience than its traditional counterpart. Based on his observations at college parties and events, Solomon conceptualized the 180Cup as a dual-functioning vessel that could serve both as a standard drinking cup and as a shot glass, container, or measuring cup when flipped upside down. This innovative design aimed to cater to the diverse needs of partygoers and event attendees, providing a practical solution for various social gatherings.
Utilizing a unique sales approach through social networks and Craigslist, Solomon engaged college students as brand ambassadors, incentivizing them to connect 180Cup with local retailers. This strategy proved successful, leading to placements in over 120 stores within six months and generating significant sales revenue. Driven by his vision to revolutionize the party cup industry, Solomon’s entrepreneurial journey with 180Cup exemplifies the power of observation, innovation, and strategic networking in bringing a novel product to market.
The Product
The 180Cup is a game-changing party essential designed to elevate social gatherings with its innovative functionality. Crafted from durable plastic, this dual-purpose cup seamlessly transitions between two distinct modes, making it a versatile addition to any event.
When positioned right-side up, the 180Cup functions as a standard drinking cup, perfect for enjoying beverages at parties, picnics, and gatherings. However, its true ingenuity shines when flipped 180 degrees, revealing its alternate purpose as a shot glass, container, or measuring cup. This dual-functionality offers unparalleled convenience and versatility, catering to a wide range of beverage preferences and serving needs.
The benefits of the 180Cup extend beyond its versatility. Its durable construction ensures long-lasting use, making it a sustainable alternative to disposable cups. Additionally, its ergonomic design and sleek appearance enhance the drinking experience, adding a touch of style to any occasion.
180Cups can be purchased online through the company’s website or in select retail stores, including local mom-and-pop shops and college campus stores. Available in packs, they are competitively priced to align with standard red cups, making them an accessible option for consumers seeking both quality and affordability.
How It Went
The company’s position before Shark Tank
180Cup has demonstrated remarkable performance and growth within a short timeframe, positioning itself as a promising player in the party supply market. With sales of $385,000 within six months of operation, the company has showcased its ability to generate revenue and capture market share. Primarily targeting college campuses and local mom-and-pop shops, 180Cup has established partnerships with over 570 stores, leveraging its unique sales approach to secure placements.
The company’s success can be attributed in part to its strategic partnerships and distribution channels. Partnering with college campuses and utilizing social networks and Craigslist to engage brand ambassadors has allowed 180Cup to penetrate key markets efficiently. Additionally, the company’s presence in over 30 colleges highlights its ability to connect with its target demographic effectively. In terms of funding, while Solomon Fallas invested $175,000 of his own capital into the venture, the company sought additional funding to support its expansion efforts.
This led to negotiations on Shark Tank, where Mark Cuban ultimately invested $300,000 for a 25% stake in the company. This injection of capital will provide 180Cup with the resources needed to scale operations, enhance marketing efforts, and broaden its product offerings.As for the company’s structure, 180Cup operates as a small but dynamic team, focused on product development, sales, and marketing. With a clear vision and a solid foundation, the company is poised for continued growth and success in the competitive party supply market.
The Negotiations:
The negotiations for 180Cup on Shark Tank were dynamic and filled with tension as sharks competed to secure a deal with founder Solomon Fallas. Initially seeking $300,000 for a 15% stake, Solomon received an immediate offer from Daymond John for the requested amount but for a 20% stake, effectively valuing the company at $1.5 million. Mark Cuban then entered with a counteroffer of $300,000 for a 25% stake, valuing the company at $1.2 million. Despite Cuban’s higher equity demand, he emphasized his expertise and commitment to help license and promote the product.
The negotiation reached a critical point as Solomon weighed the offers on the table. With the pressure mounting, he ultimately decided to accept Daymond John’s offer of $300,000 for a 25% stake, valuing the company at $1.2 million. This marked a departure from his initial terms but represented a strategic decision to partner with John, leveraging his experience and resources to drive 180Cup’s growth.
Throughout the negotiation, Solomon displayed composure and resilience, carefully considering each offer and its implications for the company’s future. The intense bidding war underscored the value and potential of the 180Cup product, with sharks recognizing its innovative design and market potential. In the end, the negotiated deal with Daymond John secured vital funding and expertise to propel 180Cup to new heights in the competitive party supply market.
