Unshrinkit – Unshrinking Solution for Clothing
DEAL
EPISODE SUMMARY
đź•“ Air Date: November 13, 2015
Asking For:
$150,000 for 10%
Investor:
Mark Cuban
Deal:
$150,000 for 15%
PRODUCT SUMMARY
Unshrinkit is a revolutionary product that relaxes wool fibers, allowing shrunken clothing items like sweaters to be returned to their original size.
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Background Story
Nate Barbera and Des Stolar, the founders of Unshrinkit, are Boston natives who discovered a gap in the market after Des accidentally shrunk a cashmere sweater. Nate, a mechanical engineer, and Des, with a business background, joined forces during their time at Harvard Business School to create a solution to a common laundry mishap.
The idea was sparked by the realization that despite numerous online searches and DIY attempts to solve the problem, there was no commercialized remedy for shrinking wool garments. Combining Nate’s problem-solving skills with Des’s business acumen, they developed Unshrinkit, a product that has since saved thousands of cherished garments.
The Product
Unshrinkit’s four-step process is designed to be user-friendly. First, add Unshrinkit to a gallon of water. Second, soak the shrunken clothing in the solution for 30 minutes. Third, rinse off the solution in cold running water.
Finally, reshape the garment to the desired size and lay it flat to dry. The product is versatile, working on various wool fabrics such as merino, cashmere, lamb’s wool, and smart wool.
Unshrinkit’s chemistry breaks protein bonds in wool fibers, allowing them to be reshaped to their original configuration. Priced between $12 and $15, the product proved its efficacy during the pitch, with the founders wearing a saved cashmere sweater.
How It Went
The company’s position before Shark Tank
At the time of the pitch, Unshrinkit had sold 5,000 units, generating $35,000 in sales. The founders projected $130,000 in sales for the upcoming year, with interest from prominent retailers like Jo-Ann Fabrics, Macy’s, and J.C. Penney. The founders highlighted the emotional connection people have with their wool garments and the market potential, stating that 45% of Americans experience clothing shrinkage each year, representing a $200 million market.
The Negotiations:
The negotiation process involves considerations of market size, scalability, and the emotional connection people have with their wool garments, leading to a strategic partnership with Mark Cuban. Kevin O’Leary makes an offer of $150,000 for 33.3%, which Nate and Des counter at $150,000 for 15%. They settle on Mark’s initial offer.
Daymond John offers $150,000 for a 25% stake with a contingency on securing a licensing deal. Believing in the founders’ knowledge about the product, Mark Cuban offers $150,000 for 15%. In the end, Mark Cuban secures the deal, and Unshrinkit gains a strategic partnership to scale their business.
