Foot Fairy
DEAL
EPISODE SUMMARY
🕓 Air Date: May 16, 2014
Asking For:
$75,000 for 15%
Investor:
Mark Cuban
Deal:
$100,000 for 40%
PRODUCT SUMMARY
Foot Fairy is an iPad app that accurately measures a child's foot size at home, providing convenience for parents and ensuring proper shoe fitting for children.
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Background Story
Foot Fairy was founded by Dr. Sylvie Shapiro and Nicole Brooks, two mothers with a shared mission to simplify the arduous task of shoe shopping for children. Dr. Shapiro, a podiatrist, witnessed firsthand the foot problems that arose from children wearing improperly fitted shoes. Fueled by this observation and their own experiences as mothers, the duo embarked on a journey to revolutionize the way parents measure their children’s feet and purchase shoes. Dr. Sylvie Shapiro brings her expertise as a podiatrist to the table, providing valuable insights into the importance of proper shoe fitting for children’s foot health.
Nicole Brooks, also a mother, contributes her firsthand experience navigating the challenges of traditional shoe shopping with children. The inspiration for Foot Fairy struck during one of their routine trips to the shoe store with their own kids. Witnessing the chaos and frustration that often ensued during these outings, they recognized the need for a more convenient and accurate solution.
Drawing on Dr. Shapiro’s professional knowledge and Brooks’ understanding of the practical challenges faced by parents, they conceptualized Foot Fairy—an innovative iPad app designed to accurately measure children’s foot sizes from the comfort of their homes. Their shared passion for improving the lives of parents and children alike, coupled with Dr. Shapiro’s expertise in podiatry and Brooks’ firsthand experience as a mother, drove them to develop Foot Fairy. With a commitment to providing convenience, accuracy, and peace of mind to parents, they embarked on a mission to revolutionize the way families approach shoe shopping.
The Product
Foot Fairy is an innovative iPad app designed to revolutionize the shoe shopping experience for parents and children. Utilizing cutting-edge technology, Foot Fairy accurately measures a child’s foot size with ease and convenience. Parents simply place their child’s foot against the iPad screen, wait for the app to emit a chime, and presto—their child’s shoe size is displayed on the screen.
The app eliminates the need for cumbersome and often inaccurate manual measurements, saving parents valuable time and frustration. Once the foot size is determined, Foot Fairy seamlessly connects users to Zappos, a popular online shoe retailer, where they can browse and purchase shoes in the correct size.
One of the key benefits of Foot Fairy is its accuracy, ensuring that children are fitted with properly sized shoes, thereby promoting foot health and comfort. The app’s user-friendly interface makes it accessible to parents of all technical proficiencies, while its intuitive design enhances the overall shopping experience.
Foot Fairy is available for free download from the App Store, making it accessible to a wide audience of parents seeking a hassle-free solution to shoe shopping. Additionally, the app operates on an affiliate sales model with Zappos, allowing the company to earn commissions on purchases made through the app.
How It Went
The company’s position before Shark Tank
Foot Fairy has shown promising performance since its official launch, with over 13,000 downloads within the first three weeks. Despite facing technical glitches initially, such as difficulty tracking commissions from affiliate sales with Zappos, the company swiftly addressed these issues, indicating its resilience and commitment to delivering a seamless user experience. Foot Fairy operates on an affiliate sales model with Zappos, earning commissions ranging from 8% to 18% on purchases made through the app. This partnership with Zappos provides Foot Fairy with a reliable revenue stream and access to a wide selection of shoes for its customers.
The target market for Foot Fairy primarily consists of parents seeking a convenient and accurate solution for shoe shopping for their children. With its emphasis on accuracy and convenience, the app appeals to parents who prioritize their children’s foot health and overall comfort. In terms of funding, Foot Fairy secured a deal with Mark Cuban on Shark Tank, who offered $100,000 for a 40% stake in the company. Cuban’s investment is expected to provide the necessary capital for further development and expansion of the app. The company’s current financial position includes the funds received from the Shark Tank deal, which will be allocated towards enhancing the app’s back-end infrastructure and marketing efforts.
As for the company’s structure, Foot Fairy is likely structured as a limited liability company (LLC) or a corporation, with Dr. Sylvie Shapiro and Nicole Brooks as the co-founders and primary stakeholders. Cuban’s investment may involve him taking on an advisory or strategic role within the company, providing valuable insights and guidance to support its growth trajectory. Overall, Foot Fairy’s strong performance, strategic partnerships, and infusion of capital from Mark Cuban position it for continued success and expansion in the market.
The Negotiations:
During the negotiation process on Shark Tank, Dr. Sylvie Shapiro and Nicole Brooks, founders of Foot Fairy, faced skepticism from some of the Sharks regarding the app’s proprietary nature and potential for replication. Mark Cuban, however, recognized the promise of the product and its potential for future growth. He made a compelling offer of $100,000 for a 40% stake in the company, with certain contingencies to ensure the viability and uniqueness of the app.
Cuban’s offer included conditions such as testing the app’s functionality, verifying its uniqueness in the market, and ensuring ownership of the software. Despite these contingencies, Shapiro and Brooks enthusiastically accepted the deal, recognizing the value that Cuban’s investment and expertise could bring to Foot Fairy. The negotiation showcased the founders’ passion and commitment to their product, as well as their willingness to work with an experienced investor to propel the company forward.
While some Sharks expressed concerns about the app’s lack of proprietary technology, Cuban saw potential in its accuracy and convenience for parents. Ultimately, the negotiation concluded with Dr. Shapiro and Brooks securing a deal with Mark Cuban, which they viewed as a significant milestone in the journey of Foot Fairy. Cuban’s investment and guidance are expected to accelerate the company’s growth and solidify its position in the market, marking a successful outcome for both the founders and the investor.
