LOLIWARE Edible Drinkware
DEAL
EPISODE SUMMARY
🕓 Air Date: October 2, 2015
Asking For:
$150,000 for 10%
Investor:
Mark Cuban, Barbara Corcoran (50/50)
Deal:
$600,000 for 25%
PRODUCT SUMMARY
LOLIWARE offers a new category of sustainable, biodegradable, and edible cups, providing a unique and fun experience for beverages and desserts while reducing disposable tableware waste.
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Background Story
LOLIWARE founders Chelsea and Leigh Ann, both graduates of Parsons School of Design in New York City, initially conceptualized their edible cup as part of a design competition. The idea sparked interest and went viral after a successful showcase at a trade show.
The founders transitioned from prototype to business, investing their own money and raising funds through friends, family, and a current $1 million round. Within three months of launching, LOLIWARE achieved $110,000 in sales and secured partnerships with notable entities, including a $30 million event-planning company called Save the Date.
The Product
LOLIWARE introduces a new category of sustainable materials – the “biodegr(edible).” Their cups are not only biodegradable but also edible, providing a unique and enjoyable experience for both beverages and desserts.
Made from vegetable gelatin that is 100% vegan and gluten-free, the cups come in various flavors and colors derived from fruits and vegetables. With a focus on reducing waste, LOLIWARE aims to lead a plastic-free revolution.
The cups decompose in just 60 days, addressing the environmental impact of disposable tableware. LOLIWARE has successfully captured attention with its innovative product, described by some as reminiscent of an adult fruit roll-up.
How It Went
The company’s position before Shark Tank
Within three months of launch, LOLIWARE achieved $110,000 in sales. They have entered into a significant partnership with Save the Date, a prominent event-planning company in NYC, which has signed a $1.3 million letter of intent to incorporate LOLIWARE into all of their events. Additionally, the company has secured agreements with one of the largest food distribution companies. LOLIWARE has experienced rapid growth since its inception, selling 3,500 cups in a single day at a trade show.
Currently, in the midst of a $1 million fundraising round, they have already raised $100,000 from friends and family, and the founders personally invested $10,000 to kickstart the business. The remaining $600,000 is in the process of being raised, with commitments already secured. Their production cost per cup is 97 cents, sold to food service for $1.50 per cup, and they anticipate reducing costs to 50 cents over the next year.
The Negotiations:
LOLIWARE entered the tank seeking $150,000 for 10%, but Mark Cuban and Barbara Corcoran surprised them with a joint offer of $600,000 for 25%, which the founders gladly accepted. The negotiation took an unexpected turn when Kevin O’Leary and Robert Herjavec expressed interest in joining the deal.
However, the founders opted for the original offer from Mark Cuban and Barbara Corcoran, citing their preference for Mark’s deeper pockets and previous successful partnerships. The negotiation showcased the Sharks’ enthusiasm for the product, resulting in a joint deal with two Sharks.
