Tattoos final perpetually, however some lose their freshness. Mad Rabbit offers tattoo aftercare merchandise to forestall discoloration and retains your physique artwork wanting vibrant. Founders Selom Agbitor and Oliver Zak pitched the product on Shark Tank and inked a take care of Mark Cuban. As of 2022, Mad Rabbit is value an estimated $12 million.
About the Founders
Oliver Zak grew up in Cleveland, Ohio, whereas Selom Agbitor is a local of Accra, Ghana. They got here from completely different elements of the world and crossed paths as college students at Miami University.
They have been launched to one another after they grew to become a part of the Delta Sigma Phi fraternity. Oliver and Selom have been formidable entrepreneurs and began a dropshipping retailer for ladies’s swimsuits.
The duo put in quite a lot of effort to get the startup going. It grew to become very profitable, and so they bought to promote the swimwear firm even earlier than they grew to become seniors.
Founding the Company
Shortly after promoting the enterprise, Oliver considered launching a tattoo aftercare product line. He had a number of tattoos however didn’t know how one can keep away from discoloration. Oliver advised his enterprise companion about it, however Selom was initially hesitant.
When they researched the product’s area of interest, they found it didn’t have an excessive amount of competitors. Once once more, they rolled up their sleeves and set to work. They each invested $300 in making the primary tattoo moisturizing balm in 2019.
In the primary yr, Mad Rabbit made $400,000 in income simply promoting the Tattoo Balm. They added new merchandise similar to lotions and gels and did $2.8 million in gross sales for 2020. Apart from direct gross sales, they provide a subscription service.
Shark Tank Appearance
By 2021, Selom and Oliver have been already doing properly however wished to make Mad Rabbit the face of the tattoo aftercare trade. They appeared on season 12 of Shark Tank, searching for $500,000 for five%.
The Sharks have been blown away by the $10 million valuation which fortunately didn’t hinder them. Thankfully they’d gross sales to again up it. At the time of the pitch, they have been making $300,000 monthly with a 20% revenue margin. Also, it was spectacular that neither of them was working full-time on the enterprise.
Kevin O’Leary was the primary to precise his curiosity, he proposed a $500,000 mortgage at 9.75% curiosity for five% fairness. Cuba, alternatively, provided the identical quantity however for 12% fairness. The founders got time to suppose and clearly wished to get Lori on board however they went with Mark’s deal.
After Shark Tank
After Shark Tank, Selom and Oliver give up their jobs to work full-time on the enterprise. The take care of Mark Cuban closed and the billionaire is now the corporate’s largest investor. The founders revealed, the present gave them a pleasant monetary increase and had individuals contacting them providing to assist.
The firm added a tattoo sunscreen to its product line together with new varieties of lotions. The merchandise are in the stores by MadRabbit.com, Urban Outfitters and Amazon. On their web site, they proudly reveal how they’ve helped protect over 1,705,000 tattoos!
In January 2022, they signed an unique 3-yr digital media take care of Inked Magazine. This means Mad Rabbit is the one tattoo aftercare product on Inked’s on-line store and flagship retailer in New York City. Also, they are going to get entry to Inked’s 60 million followers on social media.
By May 2021, the corporate had $4 million in yr-to-date gross sales and was anticipating to succeed in $12 million in income for the yr. To fund additional progress, Mad Rabbit raised a further $4 million which Cuban additionally participated in.
Mad Rabbit is estimated to make $10 million in annual income and is valued at $12 million. Due to their large promoting spend, Mad Rabbit has sacrificed earnings over progress. Given the robust financial local weather, they could must reduce on promoting sooner or later.