Young King Hair Care
NO DEAL
EPISODE SUMMARY
🕓 Air Date: March 25, 2022
Asking For:
$225,000 for 2,50%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Young King Hair Care offers a range of natural hair care products designed specifically for young boys with textured hair.
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Background Story
Young King Hair Care, based in Atlanta, Georgia, was founded by Cora and Stefan, a dynamic couple driven by their son Kade’s need for appropriate hair care products as a boy of color. Cora, who had a background in corporate leadership, and Stefan, with an extensive marketing career, recognized the absence of specialized hair care products for multicultural boys in the market. Fueled by a passion for addressing this gap, they embarked on a mission to create a brand that catered to the unique needs of young boys with textured hair, aiming to redefine male grooming for the next generation.
Their personal experiences and observations as parents led them to conceptualize Young King Hair Care, focusing on the core values of natural, plant-based ingredients and a simplified hair care regimen. Cora’s strong leadership background and Stefan’s marketing expertise served as the driving force behind the brand’s strategic development and market positioning. Their shared vision to provide high-quality hair care solutions specifically tailored for young boys reflected their commitment to nurturing confidence and self-expression among young boys of color, fostering a sense of identity and pride.
Understanding the significant gap in the market for natural, clean, and tailored hair care products for young boys, the founders embarked on a journey to craft a range of products that not only addressed the specific needs of textured hair but also promoted healthy hair growth and maintenance. With a clear focus on delivering products that were not only effective but also safe and nurturing, Cora and Stefan’s mission with Young King Hair Care resonated deeply with their personal values and their commitment to empowering the next generation of young kings.
The Product
Young King Hair Care offers a comprehensive range of natural hair care products specially formulated for young boys with textured hair. Their product line includes a selection of meticulously crafted shampoos, conditioners, and styling products, each tailored to promote hair health, manageability, and growth. By harnessing the power of plant-based, natural ingredients, their products ensure gentle yet effective cleansing and nourishment, addressing the unique needs of textured hair without the use of harsh chemicals or artificial additives.
The shampoos are designed to gently cleanse the hair and scalp, removing impurities without stripping the natural oils essential for healthy hair. The accompanying conditioners work to hydrate and soften the hair, reducing tangles and promoting easy styling. The styling products are carefully formulated to provide hold and definition while enhancing the natural texture of the hair, allowing for versatile and creative hairstyling options. These products cater to the specific requirements of textured hair, promoting moisture retention, reducing frizz, and defining curls or waves.
Young King Hair Care products can be purchased through their official website and select retail partners. Prices range from $6 to $14, making the products accessible and affordable for their target market. With a commitment to using clean and natural ingredients, their products offer a safe and nurturing hair care solution that encourages confidence, self-expression, and healthy grooming habits among young boys, empowering them to embrace their natural hair with pride and style.
How It Went
The company’s position before Shark Tank
Young King Hair Care has demonstrated notable growth and resilience in the hair care market, positioning itself as a prominent player in the niche of natural and tailored hair care solutions for young boys with textured hair. The company has forged strategic partnerships with key players in the industry, including reputable wholesalers and retail partners that have contributed to the brand’s increased visibility and accessibility within the market. By collaborating with prominent distributors and retail outlets, Young King Hair Care has effectively expanded its reach and availability, solidifying its position as a trusted provider of high-quality hair care products for its target demographic.
The company’s customer base primarily consists of parents and caregivers seeking safe, effective, and specifically formulated hair care solutions for their young boys with textured hair. Young King Hair Care has garnered a loyal following among communities that value natural and plant-based products, as well as those passionate about nurturing their children’s self-confidence and self-expression through proper grooming and care.
In terms of funding, Young King Hair Care successfully raised $1.6 million through a convertible note in their seed round, which enabled the company to drive extensive brand awareness initiatives and expand its product line. While the company has experienced initial losses due to significant investments in marketing and brand establishment, its recent sales growth, reaching $1.54 million year-to-date and projecting a promising $3 million by year-end, signifies a promising trajectory toward profitability. With a robust cash reserve and a sustainable growth plan, Young King Hair Care is strategically structured with a dedicated team comprising seasoned professionals in marketing, product development, and business management.
The Negotiations:
During the negotiations on Shark Tank, Cora and Stefan from Young King Hair Care faced a panel of experienced investors, each evaluating the company’s potential and performance. Despite showcasing impressive sales growth, the founders encountered challenges related to high marketing expenses and the company’s current profitability status. Sharks expressed interest in the brand’s potential, acknowledging the need for specialized hair care products for multicultural boys.
However, concerns were raised about the company’s valuation and the founders’ offering of only 2.5% equity in exchange for the requested $225,000 investment. While several Sharks, including Lori, Daymond, and Mark, opted out due to reservations about the company’s market competitiveness and growth prospects, they commended Cora and Stefan for their dedication and vision. Kevin proposed a royalty-based deal, offering $225,000 at a dollar per SKU until a 2X return, followed by a drop to 50 cents in perpetuity, alongside a 5% equity share.
Robert suggested a similar royalty arrangement, prompting the founders to express reservations due to their current cash flow constraints. In the end, despite the compelling offers, Cora and Stefan respectfully declined the royalty-based propositions, emphasizing their commitment to growing the company on their terms. The negotiations highlighted the importance of balancing financial considerations with long-term strategic goals, showcasing the founders’ steadfast determination to maintain control over their brand’s trajectory and future growth.
