Pashion Footwear
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 19, 2021
Asking For:
$500,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Pashion Footwear offers the world's first fully convertible high heels, allowing women to switch from heels to flats effortlessly.
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Background Story
Haley Pavone, the founder of Pashion Footwear, hails from San Luis Obispo, California. Her journey began during her college years when she attended a sorority formal wearing uncomfortable high heels, only to have one of them impale her foot while dancing. This painful experience led her to envision a solution for the age-old problem of uncomfortable high heels. Haley’s determination and entrepreneurial spirit drove her to create Pashion Footwear, a company dedicated to revolutionizing women’s footwear.
After raising her initial funding of $26,500, Haley developed the world’s first fully convertible high heels. These innovative shoes feature a unique removable sole support, allowing them to transition from stylish high heels to comfortable flats with a simple twist. Haley’s mission was to make traditional high heels a thing of the past and provide women with a more comfortable and practical alternative.
The Product
Pashion Footwear’s innovative high heels are designed to offer both style and comfort. The key feature of these shoes is their fully convertible design.
With a twist of the wrist, the high heels transform into comfortable flats, providing instant relief from the discomfort associated with traditional high heels. The shoes use flexible materials in their midsole, ensuring comfort and support.
The benefits of Pashion Footwear include the ability to wear high heels for extended periods without discomfort and the convenience of easily switching to flats when needed.
The innovative design sets them apart from traditional high heels, making them a game-changer in the women’s footwear market.
How It Went
The company’s position before Shark Tank
Pashion Footwear had achieved sales of over $800,000 within a year and a half of its inception. However, the company faced a 24% return and exchange rate, which was slightly higher than the footwear industry average of 20%, mainly due to the challenges of online sizing accuracy. The company primarily operated online, leveraging digital marketing, PR efforts, and word of mouth to drive sales.
Their customer base included women seeking stylish yet comfortable footwear for various occasions.At the time of the pitch, Pashion Footwear had raised a total of $2.5 million in funding through convertible notes, with Haley holding an 83% ownership stake. The company had $250,000 in cash and $150,000 worth of inventory at cost. However, their monthly burn rate was $90,000 before accounting for marketing expenses.
The Negotiations:
Haley entered the “Shark Tank” seeking a $500,000 investment for 5% equity in her company, Pashion Footwear. She showcased her innovative convertible high heels and their potential to disrupt the women’s footwear market. Kevin O’Leary made the only offer, proposing a $500,000 investment for 5% equity with a royalty structure. He wanted a $5 royalty per unit until he recouped $1 million, after which the royalty would cease.
However, Haley was hesitant about a royalty structure, preferring to allocate every dollar into growing the business. Other Sharks, including Lori Greiner, Mark Cuban, Barbara Corcoran, and Robert Herjavec, expressed concerns about the company’s financial situation, with a high burn rate and limited cash reserves.
Ultimately, Haley declined Kevin’s offer and the other Sharks also opted not to invest. Despite not securing a deal, Haley remained confident in her ability to navigate the challenges and continue growing Pashion Footwear.
