Susty Party
NO DEAL
EPISODE SUMMARY
🕓 Air Date: May 2, 2014
Asking For:
$250,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Susty Party offers eco-friendly party tableware, including cups, straws, cutlery, plates, and bowls, made from sustainable materials such as wood, tapioca starch, and grass fiber, all manufactured in the USA.
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Background Story
Jessica Holsey and Emily Doubilet, the founders of Susty Party, are on a mission to revolutionize the party industry with their eco-friendly tableware. Based in Brooklyn, New York, Jessica, an environmental-studies graduate from Oberlin College, and Emily, a former Wall Street professional with an economics degree from Harvard, joined forces to create a business that aligns profit with environmental responsibility. Their paths crossed at a party, where Jessica, inspired by her studies and passion for sustainability, expressed her desire to make a positive impact on the environment.
Meanwhile, Emily, seeking to leverage her economics background to build a socially responsible business, saw an opportunity to combine their skills and aspirations. Driven by their shared values and vision for a greener future, Jessica and Emily founded Susty Party. They recognized the significant waste generated by traditional disposable tableware at parties and events and sought to address this issue by offering eco-friendly alternatives. Through meticulous research and collaboration with sustainable factories, they developed a line of colorful, fun, and highly functional party tableware, all made in the USA.
Their commitment to sustainability extends beyond the products themselves, as they actively engage in empowering visually impaired workers in the manufacturing process, further embodying their ethos of social and environmental responsibility. With Susty Party, Jessica and Emily aim not only to provide consumers with high-quality, eco-friendly tableware but also to inspire a shift towards more sustainable consumption habits in the party industry and beyond. Their journey reflects their dedication to creating a business that respects the earth while encouraging people to “party on” responsibly.
The Product
Susty Party offers a range of eco-friendly party tableware designed to enhance celebrations while minimizing environmental impact. Their products include cups, straws, cutlery, plates, and bowls, all crafted from sustainable materials such as wood, tapioca starch, grass fiber, and 100% recycled paper.
The tableware is not only visually appealing with colorful and fun designs but also highly functional, with features like oven- and microwave-safety for plates and bowls. The cups and straws provide a sturdy and durable alternative to traditional plastic, while the cutlery offers both practicality and sustainability.
Customers can purchase Susty Party products online through their website or through select retailers, including major chains like Whole Foods. Prices reflect the quality and eco-consciousness of the materials, with options available for various budgets. For instance, a pack of eight seven-inch plates retails for around $4.99, offering affordability without compromising on sustainability.
Whether it’s a birthday party, wedding, or corporate event, Susty Party’s tableware provides a guilt-free way to celebrate while reducing waste. By choosing Susty Party products, customers can enjoy the convenience and aesthetics of disposable tableware without sacrificing their commitment to environmental stewardship.
How It Went
The company’s position before Shark Tank
Susty Party has demonstrated strong growth and sustainability in both its business model and environmental impact. The company’s partnership with major retailers like Whole Foods showcases its market presence and acceptance. They have strategically positioned themselves as a leader in the eco-friendly party tableware sector, catering to a growing consumer demand for sustainable alternatives. Their wholesalers include various retailers, with Whole Foods being a notable partner. These partnerships have enabled Susty Party to reach a wider audience and expand its distribution channels.
Their customers are diverse, ranging from eco-conscious individuals planning small gatherings to event planners organizing large-scale events. In terms of funding, Susty Party has relied on a combination of debt financing from angel investors and revenue generated from sales. This approach has allowed them to maintain control over their company while still fueling growth and innovation. Despite facing challenges with inventory management and cash flow, the company has maintained profitability for the past three months, indicating a solid financial foundation.
As for the company’s structure, Susty Party operates with a lean but efficient team, led by founders Jessica Holsey and Emily Doubilet. Their commitment to sustainability is reflected not only in their products but also in their operations, such as empowering visually impaired workers in their manufacturing process. Overall, Susty Party’s health and position in the market are strong, with steady growth, a loyal customer base, and a clear vision for the future. Their dedication to sustainability, combined with strategic partnerships and prudent financial management, positions them well for continued success and impact in the party tableware industry.
The Negotiations:
During the negotiations on Shark Tank, Jessica and Emily of Susty Party faced scrutiny over their valuation and operational efficiency. While they initially sought $250,000 for 10% equity, the Sharks expressed concerns about the company’s financial health, particularly its inventory management and cash flow. Kevin O’Leary made an offer of $250,000 in debt financing at 10% interest, along with a significant 30% equity stake, which was met with hesitation from the founders due to the high equity demand.
Despite positive feedback from the Sharks, including Lori Greiner’s interest in the eco-friendly aspect of the business, the founders ultimately declined all offers, opting to continue their search for an investor who shares their vision for sustainability and growth. Mark Cuban and Barbara Corcoran provided valuable insights into the importance of effective cash management and market positioning, highlighting potential risks and opportunities for the company’s future.
Ultimately, the negotiations ended with no deal, as Jessica and Emily decided to remain steadfast in their commitment to their company’s mission and values, even if it meant passing up immediate investment opportunities. Their decision reflects their confidence in the long-term viability and impact of Susty Party, as they continue to pursue their goal of creating a more sustainable party industry.
