Curie Deodorant & Skincare
DEAL
EPISODE SUMMARY
🕓 Air Date: March 11, 2022
Asking For:
$300,000 for 5%
Investor:
Mark Cuban, Barbara Corcoran (50/50)
Deal:
$300,000 for 10% + 4% in advisory shares
PRODUCT SUMMARY
Curie offers aluminum-free deodorant and body care products made with luxury skincare-quality ingredients, providing effective odor control and skin comfort.
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Background Story
Curie, a natural deodorant company, was pitched on Shark Tank by Sarah Moret, its passionate founder. Based in Los Angeles, California, Sarah introduced herself as a former CPA and former employee of a venture capital fund, bringing a unique blend of financial acumen and business insights to her entrepreneurial journey. Sarah’s inspiration for creating Curie emerged from her personal struggle to find a natural deodorant that was effective and gentle on the skin.
Frustrated with the limited options available in the market, she embarked on a mission to develop a superior alternative. Combining her knowledge of luxury skincare-quality ingredients with her desire for a reliable and safe deodorant option, Sarah formulated Curie’s unique blend. Her attention to detail and dedication to providing a premium product led to the creation of an aluminum-free deodorant that not only effectively combats body odor but also promotes skin comfort.
Through the initial phase as a side hustle, Sarah leveraged the power of social media and direct sales to propel Curie into the market. Despite facing the challenges of a competitive industry, she persisted, leading the company to significant early success. Sarah’s background in finance and her experience in the venture capital sector equipped her with a strategic mindset and a deep understanding of the dynamics of business growth, which became instrumental in positioning Curie for rapid expansion and market penetration.
The Product
Curie’s flagship product, an aluminum-free deodorant, stands out for its efficacy and use of luxury skincare-quality ingredients. Engineered to provide effective odor control and skin comfort, the deodorant incorporates a blend of natural elements. Sage oil and probiotics work synergistically to combat unpleasant odors, while arrowroot powder aids in sweat absorption, maintaining dryness throughout the day. Furthermore, chamomile and aloe contribute to soothing and nurturing the delicate skin of the armpits, preventing irritation and rashes commonly associated with conventional deodorants.
In addition to the deodorant stick, Curie offers a spray deodorant, which has gained popularity, particularly among male customers, finding placement in numerous gym locker rooms across the nation. The company also extends its product line to include body care essentials such as a full-body deodorant spray, whipped body wash, and a groundbreaking pit detox mask, all designed with the same commitment to premium quality and natural ingredients.
Curie’s products are available for purchase through various channels, including their website, possibly through partnering retailers, and select online marketplaces. With the deodorant stick retailing at $12 and the spray deodorant at $14, customers can enjoy the benefits of a reliable, high-quality, and natural deodorant option that not only addresses their body odor concerns effectively but also promotes overall skin health and comfort.
How It Went
The company’s position before Shark Tank
Curie has exhibited robust growth and a promising position within the natural deodorant market. The company’s early success, as evidenced by sales figures of $125,000 in its first year and a remarkable surge to $700,000 in the second year, indicates a strong consumer demand for their premium, aluminum-free products. With a projected $2 million in sales for the current year, Curie has established itself as a formidable player in the personal care industry, with a focus on providing effective and skin-friendly deodorant solutions.
The brand has strategically partnered with prominent gyms, including the renowned SoulCycle, which has provided a significant platform for product visibility and customer engagement. This move demonstrates the company’s emphasis on aligning with fitness and wellness-oriented establishments, effectively reaching their target audience of health-conscious and active individuals. While the company remains in a growth phase, it has secured a notable funding of $1 million through a convertible note at a $5 million cap. This infusion of capital reflects investor confidence in Curie’s potential for further expansion and market penetration.
The company’s profitability, although not yet achieved, is a key focus, with plans in place to attain profitability by the end of the current year or the beginning of the next. Curie’s profit margins range between 75% and 85%, with a higher margin observed for their body-care products. This strong margin indicates a healthy balance between production costs and retail pricing, showcasing the company’s ability to offer a premium product while maintaining competitive pricing. The company structure appears to be streamlined, with Sarah Moret at the helm as the founder and key decision-maker, supported by a dedicated team focused on driving sales, marketing, and product development.
The Negotiations:
As the negotiation unfolded in the “Shark Tank” episode featuring Curie, the den witnessed the early exits of Kevin O’Leary and Mark Cuban, each citing distinct concerns. While Kevin recognized Sarah as a formidable force, he cited a misalignment of expertise, prompting his departure. Mark, on the other hand, expressed reservations about the fundamental viability of the business model, leading him to withdraw from the opportunity.
Barbara Corcoran and Lori Greiner, after careful consideration, chose to forego the investment proposition. Barbara’s key apprehension revolved around the notion of prematurely raising capital, deeming it a significant and potentially detrimental misstep. Lori, aligning with Barbara’s viewpoint, decided to follow suit, declining to further pursue the deal. Despite initial hesitancy, Daymond stepped forward with an offer of $300,000 for 30% equity, emphasizing the perceived risk associated with the venture. Sarah, in an attempt to secure a more favorable stake, attempted to negotiate for 12% equity, yet Daymond’s reservations persisted, leaving the potential agreement in a state of uncertainty.
In a surprising turn of events, Mark and Barbara re-entered the negotiation, prompted by Sarah’s unwavering determination. Collaboratively, they extended a joint offer of $300,000 for 14% equity, acknowledging the potential in Sarah’s vision. Sarah, attempting to leverage the situation to her advantage, proposed a counteroffer of $400,000 for 14% equity, seeking a more substantial investment. However, Mark and Barbara, recognizing the delicate balance, declined the proposition, eventually reaching a mutual consensus on an agreement of $300,000 for 10% equity and 4% in advisory shares, culminating in a successful resolution to the negotiation process.
