Jun 10, 2019

CurlMix Shark Tank Update

My wildest dreams came true after filming for the show, and not solely because of Shark Tank.

We filmed in September of 2018 and even though we were a little disappointed we didn't get a deal, we were happy knowing we made the right decision for our business.

We knew we were growing like weeds and would hit a million in sales that year even if the sharks didn't believe in us.

So we put our heads down and ended the year with a bang!

We made over $1,000,000 in total sales by the close of December 2018.

Shortly after that sales exploded! We hit record-breaking monthly sales of over $300k in January, and by February we were able to make our entire staff of 12 full-time employees with FULL BENEFITS!

That accomplishment alone was the proudest moment for Tim and me, because, we went without insurance in 2018 because frankly, we couldn't afford it.

Tim left his job making over 200k to work for CurlMix full-time and for months we didn't pay ourselves anything.

With everything we had going on, a mortgage, utilities, food, and car/life insurance, health insurance was not an option. So a full calendar year later, to be able to offer it to our staff was like Christmas for us.

Mid-February we finally got word that our episode was airing, three weeks before it aired March 3rd, 2019.

I screamed and called Tim immediately. “Ahhhhhhh! TIM TIM TIM!” and yelled, "GUESS WHAT?!?!"

He replied, “We are gonna be on Shark Tank?!?!?!” Clearly, my husband knows me.

He knew there was only one reason I could be acting this crazy.

I hopped out my chair and started screaming! I picked up my phone because I wanted to tell everyone, but I realized I couldn’t!

Of course, we had to stay silent for the entire 6 months since we filmed and it was tough.

After I calmed down, the entrepreneur in me thought immediately, "Oh shit, we can't afford inventory"!

I scrambled, reaching out to EVERYONE I knew for a short term loan or VC.

I got one of three answers:

From Lenders - "You have outstanding debt so, no."
Loan Sharks - "Sure for $150k, you'll owe 30% interest in 2 months."
Angel Investors - "We can't move that fast, we can get it to you in a month."

And once again, Arlan of Backstage Capital saved the day.

I asked her if she had any connections because I needed about $200k for inventory.

She certainly did and put me in touch with someone of high net worth who could "Make a decision after a 10-minute call and have the money to me by the next day."

He was traveling in Africa and I had to talk to him through a shoddy internet connection while I pitched my business.

He was spitting off questions faster than I'd ever gotten them.

Him: What's your CAC, AOV, LTV? How do you plan to grow? What are you struggling with? How have you funded the business?"

I answered each question directly and very honestly.

Him: Alright, I'll do the deal but you aren't gonna love the valuation.

We did a convertible note for $7 Million dollar valuation for $200k invested.

Approximately 2.8% of equity. Up until this point, Tim and I bootstrapped the brand and owned 90% of the company. This was still a HELL of a lot better than Robert's offer.

Robert's Offer: 20% Equity for $400k Investment

Current Offer: 2.8% Equity for $200k Investment

Him: "Oh, and can my friend, Jeff and I split the offer?"

Me: Who is Jeff?

Him: Jeff Weiner, he is the CEO of LinkedIn.

My thoughts: Are you freaking kidding me?!?!?!? Holy shit!

Me: Oh sure, that's totally fine.

After Shark Tank aired, we made a ton of sales!

We grossed about $900k in sales in March alone!

A little over a week after the show aired, my Angel Investors called again asking to invest even more!

He offered $1.2M alongside Jeff and other partners at a $12M Valuation.

That's 3x the money for 6x the valuation that the Sharks offered us.

And of course, I said yes!

Although it wasn't that simple at first. I almost said no, I'm a crazy person and almost made the worst decision EVER but I'm not so dumb lol.

Jeff watched the episode, and he was thoroughly impressed and pissed at the sharks for not seeing our value. He set up 15 mins to chat on the phone with me and it turned into an hour.

Jeff: What are your monthly sales?

Kim: We are making appx. $20k/day.

Jeff: Holy crap you're making a lot of money!

He really took the time, offering advice, suggestions, and ideas...I was very grateful. LinkedIn is worth BILLIONS and their CEO is taking time to consult with me on my startup.

What does that even cost in real dollars?! I don't even know but I am sure I can't afford it and don't know anyone who can.

Since then we've spoken a few times and I am floored at how quickly my life has changed.

Last year, I was in my house with my 5-month-old making products in my kitchen and enlisting Tim's help to grow the business, with $45k in monthly sales.

We couldn't even afford health insurance.

Now we are making millions, raising millions, talking to millionaires who manage billion dollar companies and I just don't know what life is.

I am just so grateful to be here.