Nightcap Drink Cover
DEAL
EPISODE SUMMARY
🕓 Air Date: February 5, 2021
Asking For:
$60,000 for 20%
Investor:
Lori Greiner
Deal:
$60,000 for 25%
PRODUCT SUMMARY
Nightcap is a dual-purpose accessory that serves as both a stylish scrunchie and a cover for your drink to prevent drink spiking, especially aimed at women in social environments.
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Background Story
Nightcap was founded by Shirah and her brother Michael, who hail from West Palm Beach, Florida. Shirah, a recent college graduate, was inspired to create Nightcap after a friend experienced a drink spiking incident at a bar. This traumatic event motivated Shirah to come up with a solution to help protect women in social settings.The idea for Nightcap came to her in a dream, and she quickly turned it into a reality by creating the first prototype using pantyhose and a scrunchie from her mom’s closet.
Michael, who had plans to attend law school, saw the potential in Shirah’s idea and decided to join forces with her to make Nightcap a reality. Together, they embarked on a mission to provide women with a fashionable and effective way to safeguard their drinks from potential harm.
The Product
Nightcap is a simple yet innovative product designed to prevent drink spiking. It serves a dual purpose as a scrunchie and a drink cover.
Users can wear Nightcap on their wrist or in their hair, and when they need to protect their drink, they can easily pull out the cover and place it over the top, inserting a straw for safe sipping.
When done, the cover can be neatly tucked back into its pocket inside the scrunchie for future use. Nightcap is not only a practical solution but also a fashion statement, making it easy for women to stay vigilant and stylish in social environments.
How It Went
The company’s position before Shark Tank
Nightcap had been in business for 11 months at the time of the pitch. They had achieved $68,000 in sales, with $40,000 of that revenue generated in the last six weeks, thanks to improved marketing strategies. The company initially received $18,000 in funding from their parents, and they also raised $12,000 through an Indiegogo crowdfunding campaign. Additionally, they won $15,000 through pitch competitions.
The company primarily targeted women aged 18 to 24, with 98% of their customers being women. They had identified a significant problem, with 26% of women in a survey reporting that they had experienced drink spiking. Nightcap had filed for a utility patent for their drink-spiking prevention device, emphasizing their commitment to innovation.
Nightcap was a small, family-run operation, consisting of just Shirah and Michael. Their recent success in sales was attributed to a better understanding of social media marketing and a revamped website, which led to a rapid increase in revenue.
The Negotiations:
The pitch garnered immediate interest, with Lori Greiner expressing deep passion for Nightcap’s mission to protect women from drink spiking. She offered the requested $60,000 but asked for a slightly higher equity stake of 25%. Lori’s genuine commitment to the product and its social mission resonated strongly with the founders. They accepted Lori’s offer, sealing the deal and securing her as a partner who would help them expand their reach and raise awareness about the importance of drink safety for women.
The negotiation process was swift, with both parties recognizing the potential impact of Nightcap in addressing a critical safety issue. Lori’s offer not only provided the necessary funding but also brought valuable expertise and connections in the world of entrepreneurship and consumer products. The founders were elated to have Lori on board as they embarked on their journey to make Nightcap a household name and empower women to protect themselves in social settings.
