Ava the Elephant
DEAL
EPISODE SUMMARY
🕓 Air Date: August 9, 2009
Asking For:
$50,000 for 15%
Investor:
Barbara Corcoran
Deal:
$50,000 for 55%
PRODUCT SUMMARY
A child-friendly medicine dispenser disguised as a talking elephant to make taking medicine easier and more pleasant for kids.
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Background Story
Tiffany Krumins, residing in Auburn, Georgia, a quaint town with a population of around a thousand, found inspiration for her entrepreneurial journey through her work as a nanny for a young boy named Gibby. Gibby’s struggles with taking medicine, exacerbated by frequent ear infections due to Down syndrome, sparked Tiffany’s determination to alleviate this common parental challenge. Living in a town with limited resources, Tiffany lacked prior experience in business or product development. However, her background as a caregiver, coupled with her unwavering dedication, fueled her desire to innovate.
Drawing from her experiences with Gibby and other children, Tiffany conceived the idea of Ava the Elephant, a friendly and engaging solution to simplify the process of administering oral medication to kids. The concept was simple yet effective: a plush elephant with a built-in medicine dropper that dispensed the correct dosage of medicine while entertaining children with a playful message. Tiffany’s personal encounters with the difficulties of giving medicine to children motivated her to create a product that could alleviate the stress and resistance often associated with this task.
Despite the challenges of living in a small town and lacking formal business training, Tiffany’s passion and determination led her to pursue her entrepreneurial dreams. Armed with empathy for children’s struggles and a desire to make a difference, she embarked on a journey to turn her innovative idea into a reality, ultimately bringing Ava the Elephant to the market with the hope of helping parents and caregivers worldwide.
The Product
Ava the Elephant is a revolutionary medicine dispenser designed to transform the experience of administering oral medication to children. Shaped like a plush elephant, this innovative product incorporates a user-friendly design that combines functionality with entertainment. The elephant’s trunk serves as a medicine dropper, capable of accurately measuring and dispensing the correct dosage of medication.
When activated, Ava the Elephant delivers a pre-recorded message, saying, “One, two, three, open wide!” in a playful tone, followed by encouraging feedback. This interactive feature engages children and distracts them from the discomfort of taking medicine, making the process more enjoyable and less stressful for both kids and caregivers.
Ava the Elephant offers numerous benefits to parents and caregivers, including ease of use, accurate dosing, and a positive experience for children. Its charming design and playful interaction help to alleviate children’s fears and resistance to taking medicine, fostering compliance and improving overall health outcomes.
The product is intended to be sold at an affordable price point, making it accessible to families of all income levels. Ava the Elephant can be purchased online through the company’s website or through select retailers. With its innovative design and proven effectiveness, Ava the Elephant aims to become a trusted solution for parents seeking a stress-free way to administer medication to their children.
How It Went
The company’s position before Shark Tank
At the time of the Shark Tank pitch, Ava the Elephant was in its early stages, with Tiffany Krumins as the sole proprietor driving the company’s development. The company had not yet established formal partnerships or secured wholesalers, as Tiffany was focused on product development and patent acquisition. Ava the Elephant relied on Tiffany’s personal funds and efforts for funding, with a $50,000 investment sought during the pitch to cover patent expenses and prototype development.
Despite the lack of formal sales data, Ava the Elephant demonstrated a clear demand for its product through Tiffany’s compelling presentation and testimonials. However, the company had yet to generate profits or incur losses, as it had not entered the commercial market. Ava the Elephant targeted parents and caregivers seeking a solution to simplify the process of administering oral medication to children, with the potential to reach a broad consumer base.
The company’s current structure centered around Tiffany Krumins as the founder and driving force behind Ava the Elephant. With Barbara Corcoran’s investment during the Shark Tank negotiation, the company gained valuable mentorship and guidance, potentially paving the way for future growth and expansion. Ava the Elephant aimed to capitalize on Barbara’s expertise and connections to navigate the challenges of bringing a new product to market and establishing a presence in the childcare industry.
The Negotiations:
During the negotiations on Shark Tank, Tiffany Krumins faced skepticism from several Sharks regarding the scalability and profitability of Ava the Elephant. While she initially sought $50,000 for 15% equity, concerns were raised about the product being a single-item business and the challenges of turning it into a scalable venture. Mark Cuban, Kevin O’Leary, Daymond John, and Robert Herjavec expressed doubts about the potential for a significant return on investment, ultimately opting out of the deal.
Barbara Corcoran, however, saw potential in both the product and Tiffany’s passion. Despite acknowledging the risks involved, Barbara made an offer of $50,000 for a controlling 55% equity stake in Ava the Elephant. While this offer initially surprised Tiffany, Barbara justified the high equity share by emphasizing the risks and her expertise in bringing products to market. Tiffany attempted to negotiate a lower equity stake, but Barbara held firm on her offer.
After deliberation, Tiffany accepted Barbara’s offer, valuing the mentorship and connections that Barbara could provide. This deal marked the beginning of a partnership between Ava the Elephant and Barbara Corcoran, offering the company the resources and guidance needed to navigate the challenges of bringing the product to market and establishing a presence in the childcare industry.
