Where is Mad Rabbit now? Billionaire Mark Cuban gives 'Shark Tank' alums millions more
LOS ANGELES, CALIFORNIA: Officially returning to ABC's 'Shark Tank' is the tattoo skincare firm Mad Rabbit, which uses only natural ingredients. Mark Cuban and the co-founders of Mad Rabbit, Oliver Zak, and Selom Agbitor, are expected to discuss the company's recent activities and growth plans for 2023 and beyond.
Oliver Zak, the co-founder of Mad Rabbit, said, "We are so excited to finally share the latest news from Mad Rabbit. From making our first product in a dorm room to our initial episode, to where we are now…we’ve come a long way, and we can’t wait for everyone to see the exciting deals we’ve Inked this year." The episode will air on October 14 at 8 pm EST/7 pm CST. Here is what we currently know about the company.
What happened during their time on 'Shark Tank'?
After entering 'Shark Tank', Selom Agbitor and Oliver Zak requested $500,000 in exchange for 5% ownership of Mad Rabbit Company. They described to the Sharks the importance of their company's product in maintaining the tattoo on the body. Additionally, they stated that many individuals spend hundreds of dollars on tattoos. Their product gives the tattoo a new and modern appearance. Selom stated that he is a South African immigrant and that he has had several financial difficulties. For the sake of completing his college education, he took out a loan.
When Mark Cuban and Kevin O'Leary learned about this company's worth, they were stunned. Kevin stated that if this company's valuation is $10 million, then its sales will likewise be excellent. Oliver responded to Kevin's comments by stating that their prior month's sales were $300,000. They generated revenues of $1.7 million in 2020. This sale was conducted only through the tattoo balm product. This company began sales in January 2019, the same year they generated $400,000 in revenue. It utilizes the "direct-to-consumer" (D2C) business model and conducts all sales through its website.
They spend the most money on marketing to generate sales so quickly. Before promoting the product, they conducted a study on tattoo issues. In addition to being compatible with the business model, their subscription service then had 5,000 customers. Each month, these subscribers are charged $11.9. This tattoo balm costs $2.78 to manufacture and retails for $19.99. Oliver stated that they have around 12 global rivals. Customers are acquired for $6 to $7.
Their "secret sauce" is building an Instagram tattoo community with 90,000 followers (in 2019). They spent $80,000 on marketing the month before, resulting in $200,000 in sales. Oliver estimated that one product will generate $3 million in sales for him that year. When they began their firm, only the two of them invested a total of $600.
Kevin's first offer for this company was $500,000 in debt at 9.75% in exchange for 5% stock. Barbara Corcoran would have liked to invest, but she didn't know how she could assist in a tattoo company. Daymond John commended Selom and Oliver but stated that he cannot add value to this firm, hence he is out too. Mark made an offer of $500,000 for 12% stock in this firm. Oliver requested Mark to jump into the deal with Lori Greiner, but Mark declined. Selom and Oliver accepted Mark's offer in the end.
Where is Mad Rabbit now and how is the company faring today?
The deal with Mark was finalized, and the firm is listed on his website. In the immediate aftermath of the initial air date, they experienced a backlog of orders, which resulted in some unhappy customers, but they have now ironed out the problems. As of July 2021, they were still in business and earning $3 million annually.
In January 2022, the firm became the exclusive tattoo aftercare brand for Inked, an online tattoo lifestyle magazine, and shop. Annually, the equity partnership is projected to be valued at between $4 and $5 million. Mark Cuban, Seamless Capital, LB Equity, Revolution's Rise of the Rest Seed Fund, Acronym Venture Capital, NFL wide receiver Stefon Diggs, and rappers Yelawolf and Riff Raff contributed an additional $4 million to the firm in February 2022. This money will be utilized to expand their product portfolio and retail presence. The revenue in 2021 was $12 million. They anticipate exceeding $20 million in 2022.
‘Shark Tank’ Season 14, Episode 4 airs on ABC on Friday, October 14, 2022, at 8 pm ET. Catch the latest episode that features products like Expedition SubSahara, Ghia, Storage Scholars, and Woosh.