FunkkOFF! – TeethRefreshers
DEAL
EPISODE SUMMARY
🕓 Air Date: February 17, 2023
Asking For:
$250,000 for 5%
Investor:
Robert Herjavec
Deal:
$250,000 for 12%
PRODUCT SUMMARY
FunkkOFF! TeethRefreshers is a two-in-one toothbrush and tooth gel that refreshes teeth discreetly and on the go.
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Background Story
Joelle, the inventor of FunkkOFF! TeethRefreshers, came up with the idea while living near California wineries. She enjoyed red wine but also valued having white teeth. She carried around a toothbrush and toothpaste in her purse to clean her teeth discreetly after wine tasting. One day, she realized there was no reusable and compact solution for quick teeth refreshing on the market, so she decided to create one. Over several years, she obtained eight patents for the product.
Sonia, Joelle’s friend since the seventh grade and a brand marketing expert who had worked on iconic brands like Trident and Dentyne, joined the venture. Together, they launched FunkkOFF! TeethRefreshers with the goal of providing a convenient and efficient solution for refreshing teeth on the go.
The Product
FunkkOFF! TeethRefreshers is a unique tooth-refreshing product that combines a toothbrush and tooth gel into a single, compact design. The product is designed to help users discreetly and quickly refresh their teeth, removing the “funk” caused by coffee, tea, food particles, and other sources.
To use the product, users simply remove the aerated cap and twist the bottom. This action dispenses 100% natural tooth gel, which is gentle on the teeth and mouth. FunkkOFF! TeethRefreshers feature a clever built-in mirror at the bottom, allowing users to check their refreshed and whitened teeth after use.
FunkkOFF! TeethRefreshers are available for purchase on their website and on Amazon. The retail price is $22 per unit, and the cost to produce it is $7.50, resulting in a healthy 67% profit margin.
How It Went
The company’s position before Shark Tank
FunkkOFF! TeethRefreshers began selling their product in July of the previous year. They have been selling primarily through their website and on Amazon. Additionally, the product is available in 50 stores across 20 states, with a diverse range of retailers, including dental offices, med spas, and hotel gift shops.
The founders disclosed that they have raised a total of $675,000 in funding, with a combination of $325,000 coming from their own investments. As for their financial performance, they reported sales of $82,000. However, despite their substantial funding, the company has not yet achieved profitability, with a current net loss of $130,000. The company’s bank balance stands at $50,000, highlighting the need for additional capital to support inventory and scaling up.
The founders have ambitious plans for expansion, including discussions with big box retailers to reach a broader market. The product has the potential to be placed in various locations, but it seems the founders are still working on building their distribution network and increasing brand awareness.
The Negotiations:
During the negotiations, the founders were seeking $250,000 for a 5% equity stake in their company. Robert Herjavec made an offer, proposing to invest the requested amount but for a 12% equity stake, which is double the equity the founders were initially seeking. He expressed the need for the company to focus on increasing sales and getting proof of concept before further investment could be considered.
While the other Sharks admired the product, they raised concerns about the company’s relatively small sales and the founders’ approach to marketing and distribution. They emphasized the importance of building brand awareness and securing more significant sales figures.
Ultimately, the founders accepted Robert Herjavec’s offer of $250,000 for 12% equity. Herjavec believed in the product’s potential and was willing to invest in it despite the current challenges. The founders were thrilled to have Herjavec on board and looked forward to the opportunity to scale their business with his support.
