Mirmir Photobooth
DEAL
EPISODE SUMMARY
🕓 Air Date: October 22, 2017
Asking For:
$350,000 for 10%
Investor:
Robert Herjavec
Deal:
$700,000 for 20%
PRODUCT SUMMARY
Mirmir is a premium photo booth that uses proprietary software to instantly enhance photos with flattering lighting and retouching, making everyone look beautiful.
WATCH HERE
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Background Story
Mirmir, founded by Sean Spencer and Ryan Glenn in Los Angeles, California, emerged from their dissatisfaction with traditional photo booths that produced cheap, tacky, and low-quality pictures. Both being photographers, they aimed to create a photo booth experience that combined instantaneity with studio-quality results.
Their journey began three years ago, initially catering to live events, and has since expanded to high-end parties and exclusive gatherings worldwide. The founders, having turned down investment opportunities, sought $350,000 on Shark Tank to accelerate growth.
The Product
Mirmir distinguishes itself by offering a revolutionary photo booth experience. Equipped with cutting-edge technology, the booth utilizes flattering lighting and proprietary software for instant retouching, giving users a tasteful, radiant glow. Unlike traditional photo booths, Mirmir produces high-quality photographs suitable for framing and online sharing.
With a baseline price of $2,750 in larger markets like New York or Los Angeles, customers receive the photo booth itself along with printing, with additional options for texting and social media sharing as add-ons. The highest package is priced at $3,650.
How It Went
The company’s position before Shark Tank
Mirmir has demonstrated impressive financial performance, generating over $4 million in sales over three years. Currently operating with nine machines, the company experiences high demand, especially during peak event days (Thursday, Friday, Saturday). Despite being at capacity during these days, the founders mention turning down potential business due to the inability to meet demand.
The company is entirely self-funded, with the founders investing a significant amount, estimated to be at least $250,000. The current business model revolves around live events, and the founders express the need for additional funding to expand the number of machines, invest in marketing, and boost sales.
The Negotiations:
The negotiations started with a $350,000 ask for 10% equity. The Sharks were impressed with the product’s success and quality but raised concerns about the business model’s scalability and uniqueness. Mark Cuban questioned the exclusivity of Mirmir’s filters, while other Sharks, including Kevin O’Leary, expressed concerns about the fast-changing market.
Eventually, Robert Herjavec and Kevin O’Leary made offers. O’Leary proposed a $350,000 loan at 18% interest for 5% equity, while Herjavec offered $700,000 for 20%. The founders opted for Herjavec’s deal, taking $700,000 for 20% equity, agreeing that it would accelerate their expansion plans. In the end, they were excited about the deal with Herjavec, valuing the partnership over just the financial investment.
