IceBeanie Headache Cold Pack Hat
DEAL
EPISODE SUMMARY
🕓 Air Date: February 12, 2021
Asking For:
$50,000 for 20%
Investor:
Mark Cuban
Deal:
$50,000 for 25%
PRODUCT SUMMARY
IceBeanie is an all-natural compression cold therapy solution designed to provide relief from migraines, headaches, and concussions by placing it on the head after freezing.
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Background Story
Nic Lamb, a professional big wave surfer from Santa Cruz, California, pitched IceBeanie on Shark Tank. Despite his success in surfing, Nic experienced a serious concussion while surfing the giant waves in Nazaré, Portugal. This led to months of debilitating post-concussion migraines. Frustrated with holding ice packs to his head, Nic decided to create a solution.
He developed IceBeanie, an innovative product that combines compression and cold therapy to alleviate headaches and migraines. Nic’s personal experience with post-concussion migraines inspired him to create a product that would offer relief in a more convenient and effective way.
The Product
IceBeanie is a patent-pending cold therapy solution designed to provide relief from migraines, headaches, and concussions. The product consists of a polyester cap with specialized pockets for ice packs.
Users simply place the IceBeanie in the freezer, and once frozen, they can take it out and wear it on their head for cooling relief. The cap conforms to the shape of the head, providing full coverage and allowing the cold therapy to be evenly distributed.
It offers a convenient and mess-free alternative to traditional ice packs or over-the-counter drugs. IceBeanie is suitable for individuals suffering from various types of headaches, including those related to concussions or chemotherapy treatments.
How It Went
The company’s position before Shark Tank
IceBeanie was launched in the fourth quarter of the previous year, and at the time of the pitch, it had generated approximately $100,000 in sales, selling 2,500 units. The company sources its product for $7 and sells it for $39.95, maintaining healthy unit economics. To market the product, IceBeanie has leveraged a network of influencers, including professional UFC athletes, CrossFit champions, actresses, and Olympic gold medalists.
These influencers have helped create awareness and drive sales.The company primarily sells directly to consumers through its website and also distributes through popular online marketplaces like Amazon and Etsy. While IceBeanie had shown promising initial growth, there were concerns about the size of the market and the challenge of acquiring customers who would use an ice cap for headache relief. Nic mentioned potential markets in hospitals, sports, and hangover recovery.
The Negotiations:
The pitch began with Nic Lamb seeking $50,000 in exchange for 20% of IceBeanie. The sharks expressed curiosity about Nic’s background as a big wave surfer and the incident that led to the creation of IceBeanie. After discussing the uniqueness of IceBeanie compared to other headache relief products, Lori Greiner and Kevin O’Leary decided not to invest, expressing concerns about the size of the market and the challenge of finding the right customers.
Mark Cuban then made an offer of $50,000 for 30% equity, which Nic initially accepted. However, just before closing the deal, Robert Herjavec expressed interest in making an offer as well. Nic decided to stick with Mark Cuban’s offer. Daymond John then humorously mentioned that Nic should have allowed more room for negotiations, but the deal had already been made. Ultimately, Mark Cuban secured a deal with Nic for $50,000 in exchange for 25% equity in IceBeanie.
