Jiggy Puzzles
DEAL
EPISODE SUMMARY
🕓 Air Date: April 23, 2021
Asking For:
$500,000 for 5%
Investor:
Mark Cuban
Deal:
$500,000 for 10%
PRODUCT SUMMARY
Jiggy offers modern jigsaw puzzles featuring unique art by emerging female artists, packaged in reusable glass jars and designed to promote mindfulness and creativity.
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Background Story
Kaylin Marcotte, the founder of Jiggy, hails from New York City and was inspired to create the company after experiencing stress and mental exhaustion while working at a startup. She sought a healthy way to unwind and discovered the calming effect of jigsaw puzzles. However, she found the available puzzles to be uninspiring, leading her to create Jiggy. Her goal was to combine mindfulness and art by collaborating with emerging female artists and offering unique, aesthetically pleasing puzzles.
The Product
Jiggy puzzles are not just ordinary puzzles; they are a fusion of art and relaxation. Each puzzle showcases the work of an emerging female artist and comes in a reusable glass jar.
The package includes puzzle glue and a straight-edge tool for preserving the completed puzzle as a work of art. With 500 to 1,000 pieces, these puzzles provide a challenging yet rewarding experience. When finished, the puzzle can be glued and framed, transforming it into a beautiful art piece.
Customers can purchase Jiggy puzzles online through the direct-to-consumer (D2C) model, with prices ranging from $40 to $48. The artist receives a percentage of the sales, empowering these talented individuals. Jiggy also explores the possibility of a subscription model to provide customers with new, curated images regularly.
How It Went
The company’s position before Shark Tank
Within the nine months since its launch, Jiggy has achieved impressive results, with $1.6 million in sales. The company is on track to reach $2.25 million in its first year of operation and maintains a healthy profit margin of 40%. Jiggy is currently a one-woman show, with Kaylin Marcotte owning 100% of the company. The business is debt-free and has no equity partners or investors, making it a remarkable success story for a bootstrapped startup.
The company operates primarily online, with 60% of sales from the D2C channel and 40% from wholesale. Jiggy has secured partnerships with upscale national retailers, with plans to be available in 215 stores. The puzzles retail for $40 to $48, while production costs are approximately $10 per puzzle. Emerging female artists earn $3,000 to $5,000 on average for their contributions to the puzzles.
The Negotiations:
During the Shark Tank pitch, Kaylin initially sought $500,000 for a 5% equity stake in Jiggy. Mark Cuban was impressed with her business and offered $500,000 for a 15% stake, along with a loan of $400,000 at 10% interest for 36 months. Kaylin negotiated with Mark, asking if he would match their fundraising efforts, which aimed to raise over $50,000 for supporting emerging female artists. Mark agreed to the additional $50,000 commitment.
While Lori Greiner expressed interest, she did not make an offer. Kevin O’Leary, although enthusiastic about Kaylin and her business, also refrained from making a deal due to concerns about the sustainability of the puzzle trend post-COVID-19. In the end, Kaylin accepted Mark Cuban’s offer of $500,000 for a 15% equity stake, along with the $50,000 matching commitment for fundraising, resulting in a mutually beneficial partnership.
