Why didn't Modern Picnic get a deal on 'Shark Tank'? Ali Kaminetsky misses out on investment despite predicting $2M in yearly sales
LOS ANGELES, CALIFORNIA: Lunchboxes have never looked better thanks to Modern Picnic. The firm offers a collection of stylish food containers disguised as purses and backpacks. From the outside, you'd never think it's designed for grubs and bevies. Founder Ali Kaminetsky recently appeared on 'Shark Tank' but did not receive a deal.
Ali stated to the Sharks that Modern Picnic is expected to generate $2 million in sales this year, but would also lose $1.2 million. This is also due to the fact that 25% of her money comes from advertising. Overall, Ali spends around 50% of her earnings on overall marketing. This sure was enough to put the Sharks out of making any deal.
Emma Grede asks Modern Picnic founder to slow down in marketing expenditure
While Emma Grede didn't invest in Modern Picnic, she sure had some advice for the entrepreneur. After hearing Ali's business model, the 'Shark Tank' investor advised her to slow down with her spending in marketing.
Ali revealed during the February 2 episode that her average order value is $150, whereas her gross margin remains $60. It costs her $30-$35 for a product, which she sells for $159.
Despite having significant profit margins in sales, she continues to experience financial losses. Emma recommended that she halt extensive advertising efforts and focus on a more targeted approach, emphasizing customer retention for improved financial results.
Ali Kaminetsky raised $900K each in 2 rounds of seed funding for Modern Picnic
In 2018, the ambitious inventor created a prototype of the first Modern Picnic bag. Because it is a one-of-a-kind product, creating it was difficult, but Ali succeeded.
Within a year, she began selling vegan leather lunch boxes directly to customers. The startup went viral several times and received notice from 20 major media outlets.
A single TikTok video garnered an impressive 3.8 million views, showcasing the influential reach of social media. This surge in popularity played a crucial role in securing a substantial $900,000 pre-seed fundraising round in 2021, supported by Fandango founder Michael Cline.
By 2022, Modern Picnic's total sales had topped $3.5 million after selling over 17,000 units. Before the end of the year, they had received $102,250 from 158 investors through Republic.com, a crowdfunding site.
Friends encouraged Ali to apply to 'Shark Tank' when he founded Modern Picnic. Going popular on TikTok was undoubtedly beneficial, as the 'Shark Tank' producers utilize TikTok to locate startups for the show.
Ali approached the Tank with a $400,000 offer for a 6.5% stock part in the firm, which was valued at $6.1 million.
What is the cost of Modern Picnic products?
The iconic Luncher, available in nine dazzling hues, costs $159 for a single piece. For those looking for a more complete experience, it may be matched with a $20 food container to create a completely synchronized set.
The Larger Luncher costs $189 and is designed for extra convenience. The Tote, a refined addition to the series, is priced at $250 and comes with a complimentary pouch.
The Snacker and Pouch, which cater to more compact demands, are priced at $59 and $79, respectively. For those who desire adaptability, the Backpack, which includes a padded laptop sleeve, is an excellent alternative for office workers, priced at $210.
'Shark Tank' Season 15 airs on Fridays on ABC at 8 pm ET.
For those who missed 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.