Stealth Bros & Co. – Dopp Kit
DEAL
EPISODE SUMMARY
🕓 Air Date: September 30, 2022
Asking For:
$200,000 for 15%
Investor:
Barbara Corcoran, Mark Cuban (50/50)
Deal:
$200,000 for 20%
PRODUCT SUMMARY
Stealth Bros & Co. offers stylish and discreet storage solutions for medical supplies, specifically designed for underrepresented medical communities, such as those undergoing hormone replacement therapy or requiring injectable medication.
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Background Story
Stealth Bros & Co. was founded by Braxton Fleming, a resident of Mays Landing, New Jersey, who realized the need for a better way to store medical supplies when he began hormone replacement therapy as a transgender individual. His journey to create the company started six years ago when he found himself in search of a safe, neat, discreet, and stylish method to store his medical necessities.
Braxton’s background as a nurse with 11 years of experience played a crucial role in identifying the challenges faced by his community. He recognized that individuals from various underrepresented medical communities, including diabetics, those undergoing infertility treatment, children with injectable needs, and cis-gendered individuals undergoing hormone replacement therapy, needed a better storage solution.
Motivated by a desire to make a positive impact and improve the lives of those facing similar challenges, Braxton founded Stealth Bros & Co. The company’s name reflects its mission and values. “Stealth” represents discreet medication storage, “Bros” symbolizes the brotherhood of female-to-male transition, and “& Co.” encompasses the broader allied communities they support.
The Product
Stealth Bros & Co. offers a range of stylish and functional storage solutions for medical supplies. Their flagship products include Dopp kits and Stealth sharp shuttles, specifically designed to address the unique needs of underrepresented medical communities.
The Stealth sharp shuttle is an innovative biohazard container designed for safe disposal of needles and sharps. It features a user-friendly design that allows for easy and secure needle disposal. Once filled, the top locks permanently for safe disposal.
Stealth Bros & Co. also offers bundles of sharps containers, allowing customers to purchase them in various quantities to suit their needs. These products are available for purchase through their e-commerce platform.
The pricing for their products ensures a healthy profit margin, with the cost of production for a Dopp kit at $5.80, sold at $34, and the sharps containers costing 28 cents each when purchased in bulk and sold at different price points for individual or bundled sales.
How It Went
The company’s position before Shark Tank
Stealth Bros & Co. has shown remarkable growth and a commitment to serving underrepresented medical communities with their innovative storage solutions. Year-to-date, the company has achieved $110,000 in sales, reflecting a 40% increase compared to the previous year’s $147,000 in revenue. The company operates primarily through e-commerce, reaching its target audience through organic growth and influencer marketing.
Stealth Bros & Co. has also secured a significant purchase order from a large retailer, signifying a growing demand for their products in the market. The company’s pricing strategy ensures healthy profit margins, with a Dopp kit costing $5.80 to produce and sold for $34. Their sharps containers, priced at 28 cents each when purchased in bulk, are sold individually and in bundles, both through their website and to retailers for resale.
Stealth Bros & Co. is a solo venture run entirely by Braxton Fleming, who currently operates the business out of his basement. As for the company’s financial health, it has been profitable and has secured a deal with two Sharks, Barbara, and Mark, who offered $200,000 ($100,000 cash and $100,000 credit) in exchange for 20% equity in the company. This investment will provide valuable resources and expertise to help scale the business beyond its current basement operation.
The Negotiations:
During the Shark Tank pitch, Braxton Fleming sought a $200,000 investment in exchange for a 15% equity stake in his company, Stealth Bros & Co. The product, which offered stylish and discreet storage solutions for medical supplies, had already generated $110,000 in sales year-to-date, with a 40% increase from the previous year. Barbara Corcoran and Mark Cuban both expressed interest in the business due to Braxton’s sincere commitment to his community and the product’s potential.
They teamed up and offered Braxton a deal: $200,000 in total investment, comprising $100,000 in cash and $100,000 as a credit line, in exchange for a 20% equity stake in the company. In the end, Braxton secured a $200,000 investment and invaluable support from Barbara Corcoran and Mark Cuban, two seasoned entrepreneurs with the resources and expertise to help him scale the company.
