“One Of The Many Companies That Struck A Deal On The Hit TV Show SharkTank.”
About The Company
Two Guys With BowTies, is a classic fashion design company out of Tulsa, Oklahoma. They have pretty much separated themselves from regular bowtie companies. What makes their product unique is the exotic hardwoods they use for their designs, such as Peruvian Walnut & African Zebra Wood. The company can customize anything on their bowties. At the time of their sales pitch, they could produce 1,000 bowties a week, and provide 1 day shipping. SharkTank investor Daymond John, even complimented them on their logistics during their pitch. Their key was satisfactory design combined with speed. Two Guys With Bowties also have a premiere Fedora hats line, which the brim is also made out of exotic hardwoods. The products actually age gracefully overtime, which is pretty neat.
The Shark Who Invested In Them
Daymond John- an American business man,television personality,author, and motivational speaker. He is the founder, president and CEO of FUBU, and appears as an investor on the ABC reality television series, Shark Tank, and founder of the Shark Group. Daymond has invested over $7 million in Shark Tank investments, in his tenure on the Tv Show.
Daymond started his business in Queens, NY, from his Hollis neighborhood. His mother taught him how to sew and allowed him to grow his business in her house. He sold wool ski hats at first for half of the price others were making. After that, they begin to make screen printed T-shirts. Him and his mother mortgaged their house for $100,000 to generate capital. After recruiting two friends, they started sewing the FUBU logo onto hockey jerseys, sweatshirts and T-shirts.
They loaned a few hockey jersey’s to hip-hop artists for music videos for 2 years. Afterwards, stores started requesting their brand. Daymond asked long time friend and artist LL Cool J to sport the new logo. Later, he filmed an advertising spot for The Gap, and wore a FUBU hat in the commercial and incorporated the line, “for us by us,” in his rapping.
After taking out a second mortgage on their home, to complete a $300,000 order from an offer given to them while participating in a Macy’s Las Vegas Trade Show. He was turned down for a loan by 27 banks. His mother used the last of her money to take out an Ad in the New York Times. As a result, FUBU made a deal with Samsung Textile to fulfill the orders.
FUBU took over fashion world soon after, collecting over $6 billion in sales, globally. Now, FUBU is featured at the Smithosonians National Museum of African-American History and Culture.
The Night Two Guys With BowTies Aired-How They Closed The Deal
It was October 9, 2015 of season 7, episode 3 on Shark Tank. They entered into the tank and requested $150,000 for 10% equity in their company. Which is an evaluation on the company of $1.5 million. The company was just launching then and was seeking to get into an Atlanta Market. They sold 75% of their products on their website.
The previous year (2014), they had $407,000 in sales. They were in business for 2 1/2 years when they appeared on the show. At the time, they had already profited $1 million dollars in sales. One of the founders, was a big NBA fan and so he pitched to alot of NBA players and Mike Conley, of the Memphis Grizzlies actually wore one the bowties at a press conference, that gained alot of attention.
Former NBA players like Shaquille O’neal & Charles Barkley did a separate interview to get more info on the product. Sales took a leap after the exposure.
Being that their products are great for weddings, and customers could send in their own fabrics for them to customize into the design. Shark Tank investor Kevin O’Leary, offered them $150,000 for 15% equity to promote the brand along with his “platform of love.” Which means he now is giving them an evaluation of $1 million dollars, taking half a million off their original offer. They responded and asked Kevin, did he want to team up with another shark with a different skill set, that’s when Daymond John, humorously chimed in.
Daymond knew they would need licensing which would require more time and work. So he offered $150,000 for 20%($750,000 evaluation). Kevin & Daymond were the best fit for the company at the time. They countered, by asking guest Shark, Troy Carter if he would partner up with Daymond and combine Daymond’s fashion expertise and Troy’s networking capabilities together. Daymond agreed and thought Troy’s music relations would be of value. He then upped the equity to 30%($500,000 evaluation). Troy agreed if they stay at 30% equity, then he would do the deal.
They countered with, 20% and a 5% royalty til they recouped their money, Troy then, stated he was out. Daymond offered a 10% royalty to them, since they were willing to add in a royalty. Kevin responded by dropping his equity to 17.5% with a 10% royalty.
With the deal looming, they asked Daymond if he would consider a 17.5% equity also. He responded by saying, he wasn’t going to argue over 2.5%. Smartly, they agreed to take the deal at $150,000 for 20% equity with a 10% royalty, with Daymond. Two Guys With BowTies were now backed by FUBU inventor and fashion guru, Daymond John.
Go check out there amazing products, on their website.
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