Taaluma Totes Cloth Backpacks
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 20, 2015
Asking For:
$110,000 for 15%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Taaluma Totes are backpacks made from traditional fabrics of different countries, each supporting microloans for entrepreneurs in that specific country.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Jack and Alley, co-founders of Taaluma Totes, have woven a unique narrative that intertwines their love for travel, cultural exploration, and social impact. Both graduates of Virginia Tech with degrees in engineering, the duo embarked on a transformative journey during a summer break from college that led to the inception of their socially conscious venture. Their story began in Uganda, where the vibrant and diverse fabrics caught their attention. The inspiration struck when Alley, fascinated by the local fabrics, had a beautiful skirt made by a local seamstress.
Jack, feeling a bit left out, handed over his dull, solid-black backpack to the same seamstress, asking for a more exciting version using the local fabric. This creative spark gave birth to the Taaluma Tote. Taaluma Totes is not just about stylish backpacks; it’s a manifestation of their commitment to global communities. The backpacks are made from traditional fabrics sourced directly from the countries they represent. The idea goes beyond fashion, as each purchase funds a microloan for an entrepreneur in the respective country.
The founders, recognizing the potential of their venture, transitioned from a nights-and-weekends project in their college apartment to making Taaluma Totes their full-time commitment. Located in Richmond, Virginia, the company’s production facility stands as a testament to their dedication to social responsibility. By employing adults with disabilities in the assembly process, they not only create unique and culturally rich products but also contribute to the local community. Jack and Alley’s passion for making a positive impact in the world, coupled with their engineering backgrounds, has shaped Taaluma Totes into a socially conscious brand that connects consumers with global stories and supports local entrepreneurs in a meaningful way.
The Product
Taaluma Totes offers more than just a stylish backpack; it’s a gateway to cultural exploration and social impact. Each backpack is meticulously crafted from traditional fabrics sourced directly from the represented countries. The product serves as a tangible connection to the rich heritage of each nation, telling a unique story through its vibrant patterns and colors.
Functionally, the backpacks are designed for everyday use, providing ample storage space, durability, and comfort. They cater to a target market of college students and young adults, balancing affordability at $75 with high-quality craftsmanship. The decision to keep prices reasonable aligns with their mission to make the backpacks accessible to a broader audience, especially those on a budget.
Beyond aesthetics and functionality, Taaluma Totes stands out for its impactful mission. Each purchase contributes to funding microloans for entrepreneurs in the country represented by the backpack, closing the loop in a cycle of support and empowerment. Customers can easily purchase Taaluma Totes online, making the buying process seamless. The company’s commitment to social responsibility extends to the production process, as the backpacks are assembled in a facility near Richmond, Virginia, employing adults with disabilities.
How It Went
The company’s position before Shark Tank
Taaluma Totes has demonstrated a commendable performance in its initial 10 months of operation, carving a niche in the market for socially conscious consumers. With $60,000 in backpack sales and $6,000 generated for microloans, the company has successfully translated its unique mission into tangible results. Despite facing inventory challenges due to high demand, the brand’s commitment to quality and purposeful products has resonated with customers. The company has strategically partnered with leading tech retailers to expand its reach and distribution.
Additionally, Taaluma Totes has secured agreements with wholesalers, contributing to the brand’s presence in select retail outlets. This network of partners has played a crucial role in scaling the company’s impact and market share. Taaluma Totes primarily targets college students and young adults, a demographic that appreciates both the stylish design and the meaningful social impact associated with each backpack. The brand has successfully built a community around its mission, fostering a genuine connection with its customer base. In terms of funding, Taaluma Totes relies on a mix of revenue from product sales and angel investments to sustain its operations.
The company has indicated a need for additional capital to address challenges such as inventory management and meet the growing demand for its products. The current available capital, though not specified, serves as a foundation for their expansion plans. As for the company’s financial health, Taaluma Totes reports a positive trajectory in profits, showcasing the viability of its business model. The company’s commitment to social responsibility is reflected not only in its product mission but also in its operational structure. The assembly of the backpacks takes place in a facility near Richmond, Virginia, which actively hires adults with disabilities. This intentional approach underscores Taaluma Totes’ dedication to making a positive impact at both local and global levels.
The Negotiations:
The negotiations for Taaluma Totes unfolded with the founders, Jack and Alley, seeking a $110,000 investment for a 15% equity stake in their socially conscious backpack company. However, the Sharks, while acknowledging the beauty of the product and the admirable mission behind it, expressed concerns about the company’s early stage and valuation. Despite positive feedback on the quality and impact of the backpacks, none of the Sharks made an offer. Mark Cuban emphasized that the founders, though on the right path, were more of a product than a company at this point.
Barbara Corcoran and Robert Herjavec also chose not to invest, pointing out that the company might be too embryonic for their preferences. Kevin O’Leary, known as “Mr. Wonderful,” was upfront about the valuation, stating that Taaluma Totes were not worth the $700,000 valuation they initially sought. He believed the company was still too early in its development and, ultimately, he decided not to invest. Daymond John, appreciating the founders’ commitment to making a positive change, expressed admiration but echoed the sentiment that the company was not ready for an investment of the proposed amount. He, too, opted out of making an offer.
In the end, the founders left the Tank without securing a deal, but they expressed gratitude for the valuable feedback received from the Sharks. The Sharks’ decisions centered around the company being in its early stages and the need for further refinement in strategies and pricing. Despite not securing an investment, Jack and Alley left with valuable insights to continue their journey of turning Taaluma Totes into a thriving and impactful business.
