Bambooee – The Reusable Eco-Friendly Paper Towel
DEAL
EPISODE SUMMARY
🕓 Air Date: February 28, 2014
Asking For:
$200,000 for 10%
Investor:
Lori Greiner
Deal:
$200,000 for 10%
PRODUCT SUMMARY
Bambooee is an eco-friendly alternative to paper towels, made from sustainable bamboo and reusable up to 100 times, including floor-scrubbing versions.
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Background Story
CM National, headquartered in Los Angeles, California, was founded by Irene and Noam, a couple passionate about sustainability and innovation. Irene brings a background in environmental science, while Noam has expertise in product development and manufacturing. Their journey began with a shared frustration with the environmental impact of disposable household products, particularly paper towels. Witnessing the staggering waste generated by traditional paper towels and recognizing the need for a more sustainable alternative, Irene and Noam embarked on a mission to revolutionize the way people clean their homes.
Drawing on their combined knowledge and experience, they set out to develop a solution that would not only reduce waste but also offer superior performance. After extensive research and development, they introduced Bambooee, a paper towel alternative made from 100% sustainably sourced bamboo. The idea was born out of their desire to provide consumers with a product that was not only eco-friendly but also highly functional and durable.
Their innovative approach to product design and commitment to sustainability quickly gained traction, attracting attention from environmentally conscious consumers and retailers alike. With a clear vision and a dedication to making a positive impact on the planet, Irene and Noam have positioned CM National as a leader in the eco-friendly cleaning market. Their journey is a testament to the power of passion, innovation, and perseverance in driving positive change for both consumers and the environment.
The Product
Bambooee, the flagship product of CM National, is a revolutionary alternative to traditional paper towels. Made entirely from sustainably sourced bamboo, Bambooee offers unmatched absorbency, strength, and durability. Each roll contains 20 perforated sheets, designed to replace up to 286 rolls of conventional paper towels.
Bambooee towels are versatile and can be used for various household cleaning tasks, including spills, wiping surfaces, and drying hands. They are machine washable and reusable up to 100 times, making them a cost-effective and eco-friendly choice for consumers.
The product’s unique features include its ability to remain effective even when damp, unlike traditional paper towels that lose their strength when wet. Additionally, Bambooee towels are scratch-resistant and safe to use on a wide range of surfaces, including stainless steel and tile.
Bambooee towels can be purchased online through the CM National website and are also available in select retail stores. The price ranges between $12.99 and $15 per roll, offering consumers a sustainable alternative at a competitive price point. With its superior performance and eco-friendly design, Bambooee is revolutionizing the way people clean their homes while reducing their environmental footprint.
How It Went
The company’s position before Shark Tank
CM National, the company behind Bambooee, has demonstrated robust performance and a strong position in the market. With headquarters in Los Angeles, California, the company has established itself as a leader in the eco-friendly cleaning products industry. CM National has forged partnerships with various retailers and wholesalers to distribute Bambooee products, including significant deals with retailers like Kroger. These partnerships have enabled the company to reach a wide audience of environmentally conscious consumers.
The company’s customer base primarily consists of individuals and households seeking sustainable alternatives to traditional paper towels. Additionally, CM National targets environmentally conscious businesses and organizations looking to reduce their carbon footprint.In terms of funding, CM National has relied on a combination of revenue from product sales and external investment. It’s evident that the company has achieved significant revenue growth, with sales reaching $122,000 in the first year and projected to reach $300,000 in the current year. Furthermore, CM National reported overall company sales of $1.6 million last year, with a profit of $900,000.
The company’s financial health and available capital position it well for future growth and expansion. With a focus on innovation and sustainability, CM National is structured to continue developing new products and expanding its market reach. The founders’ dedication to their mission, coupled with strategic partnerships and a strong financial foundation, ensure that CM National is well-positioned to thrive in the competitive eco-friendly cleaning products market.
The Negotiations:
During the negotiation phase on “Shark Tank,” CM National, represented by Irene and Noam, sought a $200,000 investment for a 10% equity stake in their company. Lori Greiner made the first offer, proposing to provide the full amount of funding at the requested equity stake. However, Kevin O’Leary offered an alternative deal, suggesting a loan of $200,000 with an 8% interest rate, in exchange for the same 10% equity stake.
While O’Leary’s offer presented a different financial structure, Irene and Noam ultimately accepted Greiner’s offer due to its simplicity and alignment with their original terms. Barbara Corcoran also expressed interest, offering the requested funding at the requested equity stake, praising the founders’ mission and product. Despite Corcoran’s offer, Irene and Noam chose to accept Greiner’s offer, highlighting their desire for a partnership with her due to her reputation and influence.
Mark Cuban, while initially critical of the product’s environmental claims, did not make an offer. Overall, the negotiation process showcased the founders’ ability to articulate their vision and secure a deal that aligned with their goals for growth and sustainability. Greiner’s offer provided the necessary funding while allowing CM National to retain control over their company, reinforcing their commitment to their mission and values.
