Dermovia Lace Your Face
DEAL
EPISODE SUMMARY
🕓 Air Date: February 25, 2018
Asking For:
$350,000 for 10%
Investor:
Lori Greiner
Deal:
$350,000 for 15%
PRODUCT SUMMARY
Dermovia's Lace Your Face is an innovative sheet mask design that allows users to multitask while masking, offering a secure fit with patented ear hooks and a cotton-stretch fabric saturated in serum.
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Background Story
In the vibrant city of Los Angeles, Anita Sun Eisenberg and Mariella Scott, the visionary founders of Dermovia, combined their expertise to redefine the skincare industry. Anita, a seasoned medical aesthetician, and Mariella, with a background in formulating masks, identified a common issue with traditional sheet masks – they tended to slip off, making it inconvenient for users. Determined to create a solution, they conceptualized and brought to life Lace Your Face, a revolutionary sheet mask that addressed this persistent problem.
The duo’s inspiration came from their frustration with the impracticality of conventional sheet masks, which required users to remain still during application to prevent slippage. Their mission was clear: design a mask that not only delivered effective skincare but also allowed users to go about their daily activities.
The Product
Lace Your Face stands out in the crowded beauty market with its unique design. Crafted from a cotton-stretch fabric saturated in serum, the mask features patented ear hooks, ensuring a secure and comfortable fit. The straps not only hold the mask in place but also provide gentle compression, activating the body’s natural reparative response and enhancing the product’s efficacy.
Each Lace Your Face mask contains enough serum for two treatments, offering both convenience and value. Priced at $15 for individual masks or $55 for a four-pack, the product caters to consumers seeking an efficient and practical skincare solution. The masks are available in major department stores like Nordstrom and Barneys, as well as online, providing widespread accessibility to customers.
How It Went
The company’s position before Shark Tank
Since its establishment in late 2015, Dermovia has experienced remarkable growth. Sales figures have consistently risen, reaching $1.3 million. The company’s trajectory reflects its appeal to a diverse customer base, with a presence in major department stores and a strong online platform. Dermovia’s commitment to quality is evident in the medical-grade sterilization process applied to each mask, justifying the premium price point.
The company’s profit margins, currently at 80%, have attracted attention and positioned Dermovia as a noteworthy player in the beauty and skincare market. To safeguard their innovative design, the founders have pursued patent protection, with pending utility patents showcasing their commitment to staying ahead in a competitive industry.
The Negotiations:
The pitch on Shark Tank garnered immediate interest from the Sharks, but concerns about the product’s high price point surfaced. However, the founders explained that it reflected the use of naturally derived actives and medical-grade sterilization. As other Sharks dropped out, Bethenny Frankel remained keenly interested. She made an initial offer of $350,000 for 30% equity, which prompted hesitation from the founders due to the equity percentage.
However, the negotiation took an unexpected turn when Lori Greiner expressed interest. In a surprising twist, Lori lowered her equity ask to 15%, and the deal was successfully closed at $350,000 for 15% equity. The negotiation showcased the founders’ ability to navigate the pressures of the Shark Tank and secure a partnership that aligned with their vision for Dermovia’s future. Lori Greiner recognized the opportunity and secured a deal to help Dermovia fulfill their substantial order and expand their presence in the beauty industry.
