Mad Rabbit Tatoo Balm
DEAL
EPISODE SUMMARY
🕓 Air Date: March 26, 2021
Asking For:
$500,000 for 5%
Investor:
Mark Cuban
Deal:
$500,000 for 12%
PRODUCT SUMMARY
Mad Rabbit is a tattoo aftercare product formulated with all-natural ingredients to keep tattoos looking vibrant and prevent ink discoloration.
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Background Story
Mad Rabbit Tattoo’s journey began with the fusion of two diverse backgrounds and a shared passion for art and entrepreneurship. Oliver Zak, hailing from Cleveland, Ohio, was deeply influenced by his father’s resilience in reinventing himself after a life-altering accident that shifted his career from surgery to entrepreneurship. Witnessing his father’s transformation ignited Oliver’s own entrepreneurial spirit.
On the other side of the globe, in Accra, Ghana, Selom Agbitor followed a different path, initially pursuing finance to secure a stable future. However, his true passion lay in the world of art and tattoos. The desire to bring artistry into everyday life led Selom to embrace entrepreneurship as a means to fuse his passions.
Together, Oliver and Selom recognized the underserved market of tattoo enthusiasts who cherished their body art. The idea of Mad Rabbit Tattoo was born, driven by a shared vision to provide tattoo aftercare products that would maintain the vibrancy of tattoos and prevent ink discoloration. Despite their diverse backgrounds and geographic separation, these two entrepreneurs united to create a product that transcends borders and cultures, ensuring that tattoos, regardless of the canvas, remain timeless works of art.
The Product
Mad Rabbit Tattoo is a revolutionary product designed to rejuvenate and preserve the beauty of tattoos. Formulated with seven all-natural ingredients, this tattoo aftercare solution works wonders on all skin types and tones. Its primary function is to deeply moisturize the skin, enhancing the appearance of tattoos and preventing ink from fading over time.
The magic of Mad Rabbit lies in its ability to make tattoos appear more vibrant by nourishing the skin surrounding the ink. While it doesn’t alter the ink itself, regular application of Mad Rabbit keeps the skin moisturized, minimizing the effects of aging, dryness, and dullness on tattoos.
Available exclusively on their website, Mad Rabbit Tattoo offers a subscription service priced at $11.99 per month, making it accessible to a wide range of customers. The product’s cost of production is a mere $2.78, demonstrating the company’s commitment to quality and affordability.
What sets Mad Rabbit apart in the tattoo aftercare market is its commitment to being an all-natural solution, standing as the sole all-natural product in the U.S. within this niche.
How It Went
The company’s position before Shark Tank
Mad Rabbit Tattoo has showcased remarkable performance in a relatively short span of time. With $1.7 million in sales over just eight months, the company has achieved impressive revenue growth. Their direct-to-consumer model, primarily through their website, has been a key driver of success.
What makes Mad Rabbit Tattoo stand out is its dedication to content creation and tattoo education. With an investment of approximately $85,000 in marketing each month, they have managed to build a robust online community of tattoo enthusiasts. Their Instagram account, boasting 90,000 followers, serves as a testament to their effective social media presence. Mad Rabbit’s unique marketing strategy includes sharing customer-submitted photos and engaging tattoo artists, models, and influencers to reach diverse submarkets within the tattoo community.
The company’s subscription service, priced at $11.99 per month, has attracted over 5,000 subscribers, further establishing their brand loyalty. Operating with a net profit margin of 20%, Mad Rabbit Tattoo has found a profitable balance between growth and sustainability. Their ability to scale their business rapidly while maintaining profitability showcases their strategic approach to entrepreneurship.
The Negotiations:
The negotiations for Mad Rabbit Tattoo on “Shark Tank” unfolded as a testament to their impressive growth and potential. Mark Cuban, impressed by their numbers, offered the founders $500,000 for 12% equity, which was met with hesitation due to the higher equity stake. However, Kevin O’Leary introduced an alternative: a venture debt deal. He proposed lending $500,000 at a 9.75% interest rate, coupled with 5% equity. This unconventional approach was intended to provide the necessary capital while allowing the founders to retain a larger ownership stake. It was an intriguing offer but did not sway the founders.
Lori Greiner and Barbara Corcoran praised Mad Rabbit’s success but opted not to invest, as they couldn’t see how they could contribute significantly to the company’s growth.Daymond John, while interested, declined to invest, believing that the founders were already doing exceptionally well on their own. Ultimately, it was Mark Cuban’s vision and belief in Mad Rabbit Tattoo’s potential as a premier tattoo aftercare brand that won over the founders. They accepted his offer of $500,000 for 12% equity, a decision that signaled a promising partnership and a path toward even greater success.
