Raising Wild Swimwear
DEAL
EPISODE SUMMARY
đź•“ Air Date: October 7, 2016
Asking For:
$100,000 for 20%
Investor:
Barbara Corcoran
Deal:
$100,000 for 50%
PRODUCT SUMMARY
Raising Wild offers swimsuits designed for fit, fashion, and function, with added length in the body and coverage in the booty to allow free movement, including nursing-friendly suits.
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Background Story
Raising Wild, founded by sisters Shelly Hyde and Kara Haught, has its roots in the vibrant waters of St. Cloud, Florida. Growing up in a family of 12 siblings, the sisters embraced a lifestyle filled with water-based activities, ranging from lobster diving to rope swinging. Florida’s sun-soaked atmosphere and aquatic adventures ingrained a love for swimsuits in their lives. As mothers of four children each, Shelly and Kara found that the swimsuit landscape no longer suited their needs. The transition from carefree childhood swimsuit days to the demands of motherhood prompted them to rethink what a swimsuit should be.
They realized that the current market lacked options that could keep up with the active lifestyles of mothers, who needed both style and functionality. Motivated by this insight, Shelly and Kara embarked on a mission to create swimsuits that addressed the unique requirements of women like themselves. Thus, Raising Wild was born, with a vision to provide swimsuits that seamlessly blend fit, fashion, and function. The sisters leveraged their personal experiences, combining a deep understanding of the challenges faced by active mothers with a passion for design.
The name “Raising Wild” encapsulates the spirit of their venture, reflecting both their upbringing in a large, adventurous family and their commitment to offering swimsuits that empower women to embrace life’s wild moments. The brand’s location in Florida serves as a backdrop to the energetic and outdoor-oriented lifestyle that inspired the creation of swimsuits tailored for the modern, active woman.
The Product
Raising Wild’s swimsuits are meticulously designed to meet the diverse needs of active women and mothers, offering a perfect blend of fashion, fit, and functionality. The swimsuits stand out for their thoughtful features, catering to a range of body types and the dynamic lifestyle of their wearers.
These swimsuits boast a fit that hits the right places, complementing various body shapes. The added length in the body and enhanced coverage in the booty ensure freedom of movement, addressing the unique requirements of active women. Notably, Raising Wild goes beyond traditional swimwear by incorporating nursing-friendly options, catering to the needs of mothers.
The swimsuits are available in a variety of cuts and colors, allowing customers to express their style while enjoying the practical benefits of the designs. Raising Wild products can be purchased online, with a price range of $138 to $156, positioning the brand as a higher-end choice in the market. The pricing reflects the quality and thoughtful design of the swimsuits, delivering a premium product to customers.
With an average cost per suit of approximately $38, Raising Wild maintains a robust margin of around 250%. The direct-to-consumer sales model is supported by social media marketing, making the brand accessible to its target audience of active women and mothers seeking stylish, functional, and well-fitting swimwear.
How It Went
The company’s position before Shark Tank
Raising Wild, despite being a relatively young company, has demonstrated commendable performance, reflecting a healthy and promising trajectory. The brand primarily engages in direct-to-consumer sales, with a robust online presence facilitated through social media marketing. This approach has allowed the company to cultivate a direct connection with its target audience—active women and mothers—leveraging the power of digital platforms to showcase its stylish and functional swimwear offerings.
As of now, Raising Wild has generated total sales of $130,000, attesting to the market acceptance of its products. The company’s strong profit margins, with an average cost per suit of around $38 and a pricing range of $138 to $156, showcase sound financial management and the perceived value of its premium swimsuit offerings. In terms of funding, the company initially sought a $100,000 investment for 20% equity on the television show “Shark Tank.” Barbara Corcoran’s subsequent offer of $100,000 for a 50% stake was accepted, providing Raising Wild not only with capital but also strategic guidance from an experienced industry insider.
The focus on direct-to-consumer sales suggests a self-reliant approach, allowing the brand to maintain control over its brand image and customer interactions. The current company structure and available capital would likely have undergone changes following the deal with Barbara Corcoran on “Shark Tank.” With her expertise and investment, the company is poised to explore new growth avenues and potentially secure additional funding if needed. The infusion of capital and guidance from Barbara Corcoran positions Raising Wild for further expansion and success in the competitive swimwear market.
The Negotiations:
The negotiation process for Raising Wild on “Shark Tank” unfolded with Shelly Hyde and Kara Haught seeking a $100,000 investment for a 20% equity stake in their swimwear company. Barbara Corcoran, recognizing the potential in the business, made a bold offer, proposing a $100,000 investment for a larger 50% equity stake. This offer came with a condition: the swimsuits had to be sold at a lower price point of $99 each.
The founders hesitated, as giving up half of their company was a substantial concession. After a brief deliberation, they countered with a 35% equity offer for the same $100,000 investment. Barbara, holding firm on her position, expressed her willingness to go 50/50 but wouldn’t accept a lower equity percentage. The entrepreneurs grappled with the decision, emphasizing the emotional difficulty of parting with 50% of their business, akin to giving up half of their “baby.”
Recognizing the value that Barbara Corcoran could bring to their business in terms of experience and guidance, and understanding the potential for accelerated growth, the founders ultimately accepted Barbara’s offer of $100,000 for a 50% equity stake. Despite the initial hesitation, the deal was sealed, marking a surprising turn of events and positioning Raising Wild for strategic support and further expansion under Barbara Corcoran’s mentorship. The negotiation showcased the delicate balance entrepreneurs face between retaining ownership and securing the expertise and funding needed for business growth.
