Yubo – Personalized Lunch Box
DEAL
EPISODE SUMMARY
🕓 Air Date: November 22, 2013
Asking For:
$150,000 for 15%
Investor:
Robert Herjavec, Kevin O'Leary (50/50)
Deal:
150,000 for dropping to 10% upon repayment within 18 months
PRODUCT SUMMARY
Yubo offers customizable lunch boxes that are easy to clean, environmentally friendly, and designed for children to create their own designs, with interchangeable panels.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Yubo, founded by Cyndi and Paul from San Ramon, California, emerged from the daily challenge of managing their daughters’ lunch routines. Frustrated with the limitations of traditional lunch boxes, which were neither dishwasher-safe nor environmentally friendly, the couple embarked on a mission to revolutionize the lunchtime experience for families everywhere. Their journey began four years ago when they observed the sheer volume of plastic bags being consumed in their household – nearly 2,000 per year – alongside the unsavory state of their daughters’ lunch boxes upon their return from school.
Determined to find a better solution, Cyndi and Paul scoured the market for a lunch box that met their criteria: easy to clean, eco-friendly, and customizable to suit their daughters’ evolving tastes. Unable to find such a product, the couple decided to create it themselves. Drawing upon their combined experiences and expertise, Cyndi and Paul conceptualized Yubo – a lunch box that not only addressed the shortcomings of traditional options but also empowered children to personalize their lunchtime experience.
With a background in design and entrepreneurship, Cyndi and Paul poured their passion and resources into bringing Yubo to life. Despite facing initial challenges, including securing funding and navigating the intricacies of product development, their unwavering dedication and commitment to innovation propelled Yubo from concept to reality. Today, Yubo stands as a testament to their entrepreneurial spirit and determination to make a positive impact on the lives of families worldwide.
The Product
Yubo lunch boxes offer a transformative solution to the age-old problem of packing lunches for school or on-the-go. The product’s innovative design allows children to personalize their lunch boxes with interchangeable panels, providing endless opportunities for creativity and self-expression. Made from durable materials, Yubo lunch boxes are dishwasher-safe, making cleanup a breeze and ensuring that they stay hygienic for repeated use.
Each Yubo lunch box comes with a set of reusable fruit containers and a custom-fit ice pack, ensuring that food stays fresh and cool throughout the day. The product’s versatility extends beyond its functionality, with two models available to cater to different preferences and budgets. The basic model is priced at $21.95, while the deluxe version, which includes personalization options, ranges from $30 to $40.
Yubo lunch boxes can be purchased directly from the company’s website or through various retail outlets across the nation, offering convenience and accessibility to consumers. With its user-friendly design and eco-conscious features, Yubo stands out as a practical and stylish solution for families seeking an alternative to traditional lunch boxes. Whether for school, picnics, or everyday use, Yubo empowers children to express themselves while enjoying fresh and healthy meals on the go.
How It Went
The company’s position before Shark Tank
Yubo has exhibited promising growth and a solid position in the market since its inception four years ago. The company has established a presence in approximately 100 retail stores nationwide and has expanded its reach internationally through a network of distributors. This broad distribution network enables Yubo to reach a diverse customer base and cater to the needs of families seeking innovative lunch solutions.
Key partners for Yubo include retail outlets and international distributors, facilitating the company’s expansion into new markets and increasing its brand visibility. Yubo’s target customers are primarily parents and caregivers looking for practical and eco-friendly lunch solutions for their children. The company’s emphasis on customization and sustainability appeals to environmentally-conscious consumers seeking alternatives to disposable lunch packaging. In terms of funding, Cyndi and Paul have invested approximately $350,000 of their own capital into the company, demonstrating their commitment to its success.
Yubo’s projected sales for the current year are estimated to be between $200,000 and $250,000, indicating healthy revenue generation.The company’s current structure likely involves Cyndi and Paul as the primary stakeholders, with a portion of the company owned by an industrial designer who contributed to the product development process. With its strong market position, diverse customer base, and innovative product offerings, Yubo is poised for continued growth and success in the competitive lunch box industry.
The Negotiations:
During the negotiations on Shark Tank, Yubo founders Cyndi and Paul encountered a flurry of offers from the sharks, each bringing their unique terms to the table. Barbara Corcoran and Lori Greiner expressed initial interest but bowed out due to concerns about the size and market competitiveness of the lunch boxes. Robert Herjavec kicked off the offers with a proposal of $150,000 for a 30% stake, but the founders found the equity ask too high. Next, Kevin O’Leary stepped in with an offer of $150,000 for a 20% stake, coupled with a provision for the stake to drop to 10% upon repayment of the investment within 18 months.
This offer piqued the interest of Cyndi and Paul, given its potential for reduced equity over time, aligning with their long-term goals. In a surprising turn, Lori Greiner returned with a counteroffer of $150,000 for a 20% stake, leveraging her connections with retailers like Disney and Walmart. Despite the allure of Greiner’s retail partnerships, the founders ultimately chose O’Leary’s and Herjevec’s together offer of $150,000 for a 20% stake dropping to 10% upon repayment within 18 months.
This negotiation process showcased the delicate balance between capital investment and equity ownership, underscoring the importance of strategic partnerships and financial sustainability in business decisions. Ultimately, Cyndi and Paul secured a deal that not only provided the necessary capital for growth but also positioned Yubo for success in the retail market.
