U-lace No-Tie Shoelaces
DEAL
EPISODE SUMMARY
🕓 Air Date: March 7, 2014
Asking For:
$200,000 for 25%
Investor:
Mark Cuban
Deal:
$200,000 for 35%
PRODUCT SUMMARY
U-Lace offers elastic shoelace inserts that allow users to customize their sneakers with multiple colors and patterns, transforming them into slip-ons that never need to be tied.
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Background Story
U-Lace, headquartered in Rochester, New York, was founded by Tim Talley, an entrepreneur with a keen eye for trends and a background in the fashion industry. Prior to starting U-Lace, Tim held a prominent position as the head of the largest business division at New Era Cap Company, a leading brand in headwear. However, Tim’s entrepreneurial spirit and desire for innovation led him to pursue his own venture.
The genesis of U-Lace came during Tim’s time trendspotting in Japan. Observing the popularity of sneakers and the desire for customization among consumers, Tim recognized an opportunity to revolutionize the sneaker industry. Inspired by the diverse and vibrant sneaker culture in Japan, Tim conceptualized the idea of elastic shoelace inserts that would allow users to personalize their sneakers effortlessly.
Drawing from his experience in the fashion industry, Tim saw the potential for U-Lace to appeal to a wide range of consumers, from fashion enthusiasts to athletes seeking practical solutions for their footwear. With a clear vision and a passion for innovation, Tim embarked on the journey of bringing U-Lace to life, leveraging his expertise in product development and market trends. Driven by his entrepreneurial spirit and determination to introduce innovative solutions to the market, Tim’s journey with U-Lace exemplifies the fusion of creativity, industry knowledge, and relentless pursuit of success.
The Product
U-Lace offers a revolutionary solution for sneaker customization through its elastic shoelace inserts. The product works by replacing traditional shoelaces with elastic inserts, which users can easily lace into their sneakers. Each pack of U-Lace contains multiple inserts in various colors and patterns, allowing for endless customization options.
One of the key features of U-Lace is its convenience and versatility. Users can mix and match colors and patterns to create unique looks for their sneakers, catering to individual style preferences. Additionally, once laced with U-Lace, sneakers become slip-ons, eliminating the need for tying shoelaces and providing added convenience for users.
The benefits of U-Lace extend beyond customization and convenience. The product appeals to a wide range of consumers, including fashion-conscious individuals looking to make a statement with their footwear and athletes seeking practical solutions for their sneakers. Moreover, U-Lace inserts are designed with durability in mind, ensuring long-lasting use and functionality.
U-Lace inserts can be purchased online through the company’s website or through select retailers. The price of U-Lace packs typically ranges around $3.49, making it an affordable and accessible option for consumers. With its innovative design, ease of use, and wide range of customization options, U-Lace has become a must-have accessory for sneaker enthusiasts looking to elevate their footwear game.
How It Went
The company’s position before Shark Tank
U-Lace has demonstrated solid performance in the sneaker customization market, with a strong position and a focus on growth and expansion. The company has established partnerships with global distributors, allowing them to reach customers worldwide. U-Lace’s wholesalers include a diverse range of retailers, both online and offline, catering to different segments of the market, from fashion retailers to specialty sneaker stores. The company’s customer base is diverse, including fashion enthusiasts, athletes, and individuals seeking practical solutions for their footwear.
U-Lace’s innovative product appeals to a wide range of consumers, driving demand and contributing to the company’s growth. In terms of funding, U-Lace has secured investments from various sources, including private investors and venture capital firms. The company’s financial performance has been positive, with steady revenue growth and profitability. Although U-Lace faced challenges in expanding its presence in the American market initially, the company’s reconfigured product and adjusted pricing strategy have led to improved sales and increased market penetration.
Currently, U-Lace is structured as a privately held company, with Tim Talley as the founder and CEO. The company’s management team includes experienced professionals with backgrounds in product development, marketing, and sales, ensuring effective execution of business strategies and initiatives. Overall, U-Lace is in a healthy position with a strong foundation for future growth. With a focus on innovation, customer satisfaction, and strategic partnerships, the company is poised to capitalize on opportunities in the dynamic sneaker customization market and achieve continued success.
The Negotiations:
During the negotiations, Tim Talley, the founder of U-Lace, entered the tank seeking $200,000 in exchange for 25% of his company. Mark Cuban expressed interest in the product and made an initial offer of $200,000 for 50% of the company. Tim countered by offering 35%, which Mark accepted, sealing the deal. Daymond John, initially intrigued by the product due to its fashion appeal, had to decline participation due to a conflict of interest with his involvement in a similar company. Despite his enthusiasm, Daymond couldn’t proceed ethically.
Kevin O’Leary showed some interest but raised concerns about the product’s comfort, ultimately deciding to pass on the opportunity. Lori Greiner and Robert Herjavec were also out, citing various reasons including concerns about the longevity of the trend and personal comfort with the product. In the end, Mark Cuban’s offer of $200,000 for 35% of U-Lace was accepted by Tim Talley.
Mark’s endorsement of Tim’s entrepreneurial spirit and dedication to the business, coupled with his connections in the sports and licensing industries, convinced Tim that Mark was the right partner for U-Lace’s future growth. The negotiations highlighted Tim’s resilience and determination to find the right partner for his company, ultimately resulting in a successful deal that positioned U-Lace for further expansion and success in the sneaker customization market.
