Kobee's founder refuses to cave to Kevin O'Leary's sharky offer, walks away from whopping deal
LOS ANGELES, CALIFORNIA: The founder of Kobee's, Kobe Harris, is confident that it is feasible to make skincare products entirely free of plastic without sacrificing quality and has created the ideal product to support his claims.
All-natural components are used in the production of the lip balm and its packaging, which helps to maintain skin hydration without upsetting the natural equilibrium. When Kobe appeared on Season 16, Episode 3 of ABC's 'Shark Tank', he asked the investors to join him in his green endeavor in order to grow his range of sustainable products.
The owner walked into the Tank seeking $300K for 6%.
Kobee's amazing sales piqued interest in Sharks
Kobe and his group have proven their dedication to natural and eco-friendly products. They have also become adept at listening to the needs and opinions of their clients.
The business donates a portion of its profits to organizations including Our Children's Earth Foundation, The Alliance for the Great Lakes, and One Tree Planted. It is anticipated that Kobee's skincare line will increase without sacrificing quality due to its growing product diversity.
A year before appearing on 'Shark Tank', Kobee's made $860K. The company spends about $14-$15 on customer acquisition, and the average value order is around $36.
The main SKU being their 6-pack of lip balms, which covers about a whopping 75% of the sales.
Kobe Harris stands strong to not give away a chunk of Kobee's
Most Sharks seemed interested in becoming customers of Kobe's products but shied away from making an offer. Kevin O'Leary, however, made an offer that was $300K for 20%, which is more than double what Kobe had in mind.
Mr Wonderful felt the company wasn't worth $5 million bucks. Kevin noticed that Kobe understands his CAC and ROAS, which is more than Mr Wonderful can say for most.
But retail is a very different beast. You better understand what you're up against!
More than the business, Kevin wanted to invest in Kobe.
Kobe rebuffed Kevin's underhanded offer. Great job, young man.
Business entrepreneurs should understand when to walk away. Nobody establishes a business just to give it away.
Not all money is good money. Mr Wonderful indeed did not make Kobe a wonderful offer.
Lori Greiner felt it would be a hard road for Kobee's to go into retail, especially with the name "bees" in it and almost offering the same natural ingredients as others.
Indeed, they appear to have undergone a partial rebranding. He refers to the business as Kobeesco, which is the website, even though a lot of their branding reads "Kobee's."
There are a ton of other beeswax balms on the market currently, so it was disappointing that we didn't hear any Sharks criticize it for not being unique or original. If you check for the product, you may discover Kobee's about third on the list of 'Shark Tank' lip balm goods.
However, Kobe appeared to be quite outstanding! We believe that consumers who use lip balm prefer natural ingredients, and the fact that it is biodegradable makes it incredibly sustainable for those customers.
Like Lori, we too believe he will perform extremely well online, and we would stay with that for the time being!!
In the end, Kobe had to walk away from the Tank with no offer from the Sharks.
Kobee's raised funds before 'Shark Tank'
Prior to their appearance on 'Shark Tank', Kobee's raised $30,000 in a seed investment round from Path Ahead Ventures on July 19, 2022. Kobe made effective use of the money by increasing manufacturing capacity and doing research and development for new goods.
His team launched a lip scrub and overnight lip mask in addition to various kinds of lip balm. The business unveiled a lotion bar composed of mango butter, avocado oil, shea butter, and beeswax.
The same components used to make the lip balm were also used to make a lotion stick. In order to hydrate hands, Kobee's produced a non-greasy hand salve that contains plant oils.
In keeping with this, they also introduced Neck Butter, which is a deep moisturizer.
'Shark Tank' Season 16 airs on Fridays on ABC at 8 PM ET. For those who miss the episode, it will be available on demand the following day and on Hulu. Additionally, viewers can explore past seasons and episodes on Amazon Prime Video and iTunes.