Cincha Travel
DEAL
EPISODE SUMMARY
🕓 Air Date: April 7, 2023
Asking For:
$200,000 for 15%
Investor:
Barbara Corcoran
Deal:
$200,000 for 25%
PRODUCT SUMMARY
Cincha Travel Belt is a stylish and functional add-a-bag strap that secures your personal bag to your carry-on luggage, making travel more comfortable and chic.
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Background Story
The founders of Cincha Travel Belt, Ashley Sharma, and James Baker, come from humble backgrounds. James grew up homeless as the oldest son of a family of six, but his parents instilled in him a strong work ethic and ambition. He worked his way through college and eventually attended Harvard Law School.
Ashley, on the other hand, had immigrant parents and grew up in a one-bedroom apartment. Despite her early struggles in school, she worked hard and eventually studied marketing in college. Both of them had a background in startups, which inspired them to create their own company.
The Product
The Cincha Travel Belt is a heavy-duty, stylish strap designed to secure a personal bag to carry-on luggage. It simplifies travel by relieving travelers from carrying their bags and prized possessions through the airport.
The product is easy to use – just slide, cinch, and go. The company’s flagship product, the original travel belt, is priced at $40 and costs $4.61 to manufacture.
How It Went
The company’s position before Shark Tank
Cincha Travel Belt started with $5,000 in sales in 2019, which grew to $32,000 in 2020. However, travel restrictions in 2020 due to the COVID-19 pandemic impacted their sales. In 2021, they finished with approximately $250,000 in sales and, year-to-date, reached $830,000 in sales. The company currently sells directly to consumers and is looking to expand into retail and airport stores. The founders, Ashley and James, are the only team members and are still working full-time jobs to support themselves and their business.
The Negotiations:
The sharks showed genuine interest in the product, but ultimately, Mark Cuban, Lori Greiner, and Barbara Corcoran made offers. Barbara Corcoran offered the full $200,000 but requested 33% equity, with half of the investment provided as a credit line. In contrast, Mark Cuban and Lori Greiner offered $200,000 for 20% equity, but their offer involved a royalty of $4 per unit until the capital was recovered and then dropped to 50 cents in perpetuity.
After considering the offers, Ashley and James accepted Barbara Corcoran’s offer of $200,000 for 25% equity, bringing her on board as their partner in the business. The founders were thrilled with the deal, and they expressed their excitement about working with Barbara.
