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Luxury baseball caps pitch on 'Shark Tank' had style — but judges laughed off massive $10M valuation

Max Nelson wanted to tell a person's story with his customizable hats, but the Sharks were not impressed

Max Nelson introduced Hood Hat on ‘Shark Tank' Season 15. He noticed that though hats have become an iconic apparel, none of them spoke about the person wearing them. Nelson tried to change that with a luxury cap brand that customized designs to honor the customer and their hometown. Not only that, but the caps came with high-quality fabrics, having a personal meaning, aiming for both style and identity.  

Entering the tank, Nelson told the investors that his company produces the world's finest luxury ball caps. According to Shark Tank Recap, he believed that where you came from said a lot about a person. Presenting the caps, Nelson showed how each cap honored a different hometown. Meanwhile, the products even featured an impressive range of luxury fabrics, including corduroy, cashmere, and gabardine. He asked for $500,000 in exchange for 5% equity in his company. 

With a $10 million valuation, Lori Greiner asked for his sales figures. According to Nelson, he had a lifetime sales of $1.9 million since 2018. He then explained that he began his business out of the trunk of his car. Reflecting on his past, he also mentioned that initially, the sales were slow. However, by 2020, he began customizing his caps, which attracted customers, and his sales increased to over $300,000. In 2021, his sales were up to $508,000, and by 2022, they grew further to $693,000. But what he told the Sharks next made them think twice about the product. Having a pretty good discussion with the investors, Nelson told them that the business has not experienced a net profit yet. 

This made Mark Cuban ask about the production cost. Explaining that the caps were made out of Marino Wool, they were made under $15 and retailed for $90. Interestingly, Nelson was also pitching his product in front of the guest shark, Michael Rubin. For those unversed, he is the owner of the largest licensed and branded hat company, Lids. Rubin asked how Hood Hat was different from other luxury hat brands. He also asked the entrepreneur if he thinks his brand could become a $50–$100 million company. Citing that Nelson’s ask was too big, Cuban became the first investor to drop out. Next came Kevin O’Leary, who agreed that the valuation was too much and joked that the "old Mr. Wonderful" would have really drilled Nelson.

The investor, however, thanked his anger management classes for helping him control his anger over the pitch. Rubin jumped in again and explained that Nelson’s idea was not unique and that anyone could easily take over the business. He also disagreed with the valuation that Nelson was showcasing before bowing out. Greiner became the next Shark to step away from making any investment, citing too much competition. Barbara Corcoran stated that she didn't like how Nelson was doing the business for five years, and yet made no profits, dropping out as well. With no Sharks left on the panel, Nelson had to leave empty-handed. However, after the show, his company saw a 300% month-over-month hike in business, according to Shark Tank Recap.