Oogiebear – Baby Care Products
DEAL
EPISODE SUMMARY
đź•“ Air Date: September 23, 2022
Asking For:
$400,000 for 5%
Investor:
Robert Herjavec, Barbara Corcoran (50/50)
Deal:
$600,000 for 10%
PRODUCT SUMMARY
Oogiebear is a baby booger-picker designed to help parents clear their infants’ nasal passages and ears safely and effectively.
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Background Story
Farzin, a married couple from Potomac, Maryland, created Oogiebear out of a personal need. When their eldest daughter, Ariana, had trouble sleeping due to nasal congestion and boogers, they couldn’t find a suitable solution on the market. Nina, a pharmacist with over 20 years of experience, and Sina, a periodontist, decided to take matters into their own hands. Nina’s passion for entrepreneurship was ignited, and she left her executive position to pursue this innovative baby care product.
The Product
Oogiebear is a baby booger-picker designed to safely and effectively remove boogers and earwax from infants. The product consists of a small, bear-shaped tool with a scoop and loop design. It’s designed to fit perfectly into a baby’s nostrils and ears without going too deep, making it safe and gentle for use.
The benefits of Oogiebear include helping babies breathe and sleep better, as well as making feeding more comfortable by clearing nasal passages. It comes in various versions, including the original Oogiebear, Oogiebear with a light (Oogiebear Brite), the toothbrush teether 360, and an aspirator ball. Oogiebear is marketed for babies from zero to 24 months.
The product is sold through various channels, including major retailers like Nordstrom, buybuy BABY, and Walmart, as well as online, including their own website and Amazon. Prices range from $12.99 to $24.99, providing a substantial margin for the company.
How It Went
The company’s position before Shark Tank
Oogiebear has achieved impressive success since its inception in 2015. With a focus on solving a unique problem for parents of infants, the company has generated over $15 million in total revenue sales. Their primary sales channels include major retailers like Nordstrom, buybuy BABY, and Walmart, as well as online platforms, with Amazon accounting for about 76% of their online sales.
The founders, Nina and Sina Farzin, have funded the company themselves, with Nina leaving her executive position to pursue the business full-time. Their children are actively involved in various aspects of the company, making it a true family business. Despite their substantial sales figures, Oogiebear is seeking a strategic partnership with the Sharks to help scale the business further and gain access to valuable mentorship. With the expertise and guidance of the Sharks, they aim to diversify their revenue streams and expand their product line.
The company’s profitability is growing, with a projected profit of $1 million in the current year and estimated sales of $5.4 million. Their mission is not only to provide innovative baby care products but also to raise awareness about the importance of nose breathing in infants.
The Negotiations:
The pitch for Oogiebear attracted multiple Sharks’ interest due to the product’s impressive sales and innovative design. The entrepreneurs initially asked for $400,000 in exchange for 5% equity in their company. Barbara Corcoran and Robert Herjavec jointly made an offer of $600,000 for 10%, expressing their confidence in the product’s potential. They even offered to return half the equity if they couldn’t meet their sales targets, demonstrating their commitment.
Kevin O’Leary also made an offer of $400,000 for 10%, but he didn’t include a similar guarantee.
Lori Greiner, who was impressed by the product line’s smart design and the entrepreneurs’ success, offered $400,000 for 10% as well. However, she wanted Mark Cuban to join her in the deal, and Mark expressed an interest but suggested they should take more than 10%.
The entrepreneurs ultimately decided to go with Barbara Corcoran and Robert Herjavec’s offer of $600,000 for 10%, appreciating their commitment to mentorship and their willingness to invest in their business. It was a heartwarming moment, as the entrepreneurs had come to the Tank seeking both investment and guidance to take their family business to the next level.
