OogieBear Booger Picker – Shark Tank S.14 Ep.1
Name & brand: OogieBear
Branding wise it is ok, we can make the connection between oogie and boogie – booger.
Logo: Is ok, shows clearly that it is a products for babies.
Story: Nina a pharmacist was coming up with products because her nephew needed it, jokingly told her husband i am going to bring this to market. The husband replied “Let’s see you try”, and this dare basically launched the whole thing.
Company offer: Booger picker for 0-24 month old babies. (But currently have different products) > Smart baby products.
The Pitcher: Nina Farzin and her husband Sina Farzin.
The Problem that needs solving: Babies have problems breathing and sleeping because of boogers, this company is focusing on solid boogers.
The ask: $400 k for 5% of the company.
Valuation: $8 million.
Defensibly: Utility and design patent.
Sales: To date over 1 million unit. 2015 to now, over $15 million total revenue sales. Last year revenue sales $4.5 million. This year revenue sales $5.4 million (over $1 million profit). Next year expected $6.5 million.
Cost: $2-4 Sells: $13-20
Business model: Wallmart + other places +76% D2C on Amazon.
Mr wonderful (Kevin O’Leary) offered $400k for 10%. Daymond is impressed but he is out because it’s not his area of expertise.
Lorry asks the important question, is there knockoffs?
Nina says there are, but OogieBear are fighting them, because they have both a design an utility patents.
Lorry offers 400k for 10% but invites Mark to join with her, Mark counters 12% for 2 sharks. Barbara offered 400k for 10% with the promise to give half the stocks back in 2 years if they don’t reach a target valuation.
Robert asks another important question, do you have any other investors ?
Nina replies, she started the company with $22 000, and the sharks are the first investors. Robert gets in on Barbara’s offer, with same terms.
Nina counter-offered asking 600k for the 10%, mentioning that they don’t need a credit line (they have a million $ in cash), it’s a matter of valuation.
It’s a fight between the sharks … Barbara & Robert got the deal “600k for 10%”.
This company is a great example of the power of patents. Without patents, this would be quickly knocked off, and knock off would be selling for 1-2$ at most. Entrepreneurship wise, Nina is clearly a hustler, she did amazingly great, reaching $15 million in sales and $1 million in profit without external funding. The tool might not be that great compared to simple tweezers. Internationally, there is no patent, and i don’t see people wanting to go fish for babies boogers instead of simply using tweezers.