Why did CAKES Body founders choose Emma Grede? 'Shark Tank' investor Kevin O'Leary's royalty deal spooks twin sisters
LOS ANGELES, CALIFORNIA: Companies nowadays rely significantly on social media platforms for sales, and CAKES Body has achieved a million-dollar valuation owing to TikTok's strength. Taylor and Casey Capuano's company sells nipple covers and just signed a contract with Emma Grede.
The duo came into 'Shark Tank' seeking $300k for 5%.
Mark Cuban and Robert Herjavec both declined to invest in CAKES Body, claiming their own lack of experience in the industry.
Emma saw the twins as more than simply two competent marketers. She finds them really interested in their business. She proposes that they go wholesale and retail, as well as potentially grow their firm. Emma, on the other hand, wants 12.5% of the firm.
Kevin O'Leary jumped in with the same offer for 5%, but he wanted $1 for every set until he made a million dollars, making it three times his investment.
He also intended to preserve 5% of his shares to assist them in building the firm. He then calls Emma "greedy" before raising his own. Emma responds by stating that she has established firms worth more than $1 billion.
The sisters were hesitant about getting entangled in the royalty loop at the early stages of the company. Eventually, they successfully convinced Emma to negotiate, and the deal was sealed at 10%.
How does CAKES Body work?
CAKES Body is neither the first nor the only maker of nipple covers; there are several other brands on the market. Nonetheless, some key design elements distinguish CAKES Body from other goods, including sports bra pads.
Most notably, CAKES Body does not use or need the application of any sticky chemicals to the body. They rely on natural body heat to keep them in place instead, and the company describes them as "grippy, not sticky."
Because CAKES Body is made of non-toxic, medical-grade silicone and does not include any adhesives, it may be cleaned and reused endlessly.
CAKES Body offers its unique product in various cup sizes and skin tones, including the option of the "largest nipple covers on the market" as an alternative. The company's goal is to cater to a diverse range of body shapes.
What inspired the Capuano sisters to create CAKES Body?
CAKES Body, like many of the most successful businesses on 'Shark Tank,' was inspired by the inventors' own experiences.
Taylor and Casey, sisters, created CAKES Body in 2022 after spending a decade creating concepts for a firm that would solve their discontent with the design of sports bras and bra alternatives.
However, what began as a little enterprise ended up taking off unexpectedly.
CAKES Body benefited from viral promotion on TikTok shortly after its introduction. Posts promoting the product reached a large audience, causing sales to surge.
During an interview on the 'Startup to Storefront' podcast, the sisters stated that around 90% of their sales come from people who hear about the product on TikTok.
According to Casey's LinkedIn page, CAKES Body's popularity helped it join the top 1% of Shopify businesses that began in 2022.
Another aspect of CAKES Body's popularity in goods contributes to its appeal. While the sisters initially envisioned CAKES as a substitute for leisure activities, they quickly discovered that they could be utilized for much more.
'Shark Tank' brand CAKES Body contributes to a worthwhile charitable cause
When the brand's creators saw that medical patients were utilizing CAKES Body, they decided to integrate a charity component into their business: CAKES Cares.
For the majority of its existence, CAKES Body has pledged to donate $1 for every individual product sold to various women's health initiatives, such as breast cancer research.
The company maintains long-standing relationships with the Breast Cancer Coalition and The Previvor, a digital women's health platform.
With CAKES Body sales skyrocketing in the first year or so of operation, the team has been able to make large gifts. According to Casey's LinkedIn, the organization has already contributed thousands of dollars and is continuing to raise donations for these charity causes.
'Shark Tank' Season 15 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.