Umano Clothing
DEAL
EPISODE SUMMARY
🕓 Air Date: November 20, 2015
Asking For:
$150,000 for 15%
Investor:
Lori Greiner, Mark Cuban (50/50)
Deal:
$150,000 for 20%
PRODUCT SUMMARY
Umano designs men's and women's elevated fashion basics with personalized artwork from young artists, aiming to connect people to a bigger purpose by giving a backpack full of school supplies for every product purchased.
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Background Story
Umano, founded by Jonathan and his little brother Alex from Athens, Georgia, is a brand with a mission. Their journey began with a commitment to combine fashion and philanthropy. The idea emerged from their desire to make a positive impact on the lives of young creative minds. Partnering with schools worldwide, they collect children’s drawings, turning them into unique designs for their apparel line.
The brand’s goal is to empower and support children through education, providing backpacks filled with school supplies for every product sold. With a strong relationship with partner schools and a commitment to giving back, Umano is driven by a social entrepreneurship model, aiming to prove that doing well and doing good can go hand-in-hand.
The Product
Umano’s products are elevated fashion basics, including men’s and women’s clothing featuring unique artwork created by young artists. The designs are carefully curated from the drawings of children in partner schools around the world.
The brand’s commitment to social impact is evident in its pledge to donate a backpack full of school supplies for each product sold. The T-shirts, starting at $48, are made from high-quality fabric sourced from global travel to ensure comfort and style.
Available not only on their website but also at retailers like Bloomingdale’s and specialty stores, Umano’s products carry a personalized touch, with the children’s drawings featured on hang-tags.
How It Went
The company’s position before Shark Tank
Umano’s sales reached $106,000 in the previous year, and they anticipated closing the current year at $250,000. The brand secured a coveted spot at Bloomingdale’s, being sold in flagship stores and gaining visibility in the competitive retail market. With a strong online presence and partnerships with specialty stores, Umano is positioned for growth.
The challenge lies in inventory management, as the company had 8,000 units already sold, earmarked for fulfilling Bloomingdale’s orders until December. Umano faces increasing demand and opportunities, with potential expansion into more retail doors. The founders are proud of their grassroots approach, emphasizing the personal connection between consumers and the cause.
The Negotiations:
The Sharks were impressed by Umano’s mission but expressed concerns about the risk associated with the fashion industry. While Robert Herjavec opted out, Mark Cuban, Lori Greiner, and Kevin O’Leary made offers. Kevin emphasized the potential risk of negative publicity associated with child labor as the company scaled. Ultimately, Mark and Lori offered $150,000 for 20%, while Daymond John proposed $150,000 for 33.3%.
Facing a unique situation where two Sharks offered less equity than one, the founders chose to accept the deal with Mark Cuban and Lori Greiner. The decision was influenced by the need to protect equity for future fundraising and the belief that Mark and Lori could provide valuable expertise in design and sourcing. The episode highlighted the rare dynamic where two Sharks sought less equity collectively than one Shark, showcasing the founders’ strategic decision-making.
