What Happened to SpiritHoods After the Shark Tank Pitch?
What is SpiritHoods?
SpiritHoods are one-of-a-kind accessories that combine the functions of a hat, gloves, and scarf.
Each SpiritHoods is handcrafted in California from quality faux fur and is modelled after a specific animal, with 10% of net profits going to the conservation of endangered species.
Who are the Founders of SpiritHoods?
SpiritHoods was started in 2009 by Chase Hamilton, Alexander Mendeluk, Marley Marotta, and Ashley Haber, who are the original inventors and co-founders.
Alex has a background in acting, having worked in television and theatre in Los Angeles.
He then began shooting events. In 2016, he left SpiritHoods to become CEO of a company that helps businesses use social media influencers.
Marley is a University of Oregon Digital Arts graduate with experience in website development.
He is still SpiritHoods’ Marketing Director.
The original idea for the firm was a fluffy animal hat that could be worn by anyone, from a coyote to a fox or bear.
Long sleeves terminated in paws on the headgear, allowing you to store basic EDC items like your keys, wallet, and so on.
With this in mind, Alex and Marley invited experienced photographer Ashley Haber and designer Latif Hamilton (aka Chase) to join the team.
They were up and running swiftly, with exceptional sales, particularly over the winter, owing to a successful crowdfunding campaign and smart social media advertising.
They’ve mastered social media and email marketing, and they wear their outrageous faux fur hats to various music festivals to keep the excitement and brand alive.
In 2013, they designed washable speakers implanted in many of their hats to merge headphones with style.
They’d made around $10 million thus far, due to celebrity sponsorships from Snoop Dogg and Justin Bieber.
However, revenues were beginning to dip, and they needed to bring on an investor in order to pay off their commitments and build the company.
What Happened to SpiritHoods at the Shark Tank Pitch?
Alexander and Chase appeared on Shark Tank season 5 episode 11 seeking a $450,000 investment in exchange for a 15% stake in their company. This equates to a $3 million valuation.
They give a brief presentation on SpiritHoods, a community-based movement motivated by self-expression and a desire to safeguard the environment.
The hats contain “sleeves” that can be worn as a scarf, paw-shaped pockets for your hands, and even a hidden pouch with machine-washable speakers that can play music from your smartphone or iPod.
Each Shark receives a pair of SpiritHoods. Mark Cuban is noticeably absent until the two have a model emerge, dressed in a ridiculous SpiritHoods in the Mavericks’ team colours.
They explain that they will be producing a line of “fanimal” SpiritHoods, a team spirit line in sports team colours.
Although Robert Herjavec doubts that adults would wear the SpiritHoods, Kevin O’Leary is more concerned with business than fashion.
“I don’t care who wears them; I’m interested in your sales,” he continues. Sales of $9.8 million are enough to raise the Sharks’ eyebrows and increase the Spirit Hoods’ desirability a few notches.
Harrods, Zappos, and Nordstroms all sell the hats online.
Each SpiritHoods is made in Los Angeles for $29 and retails for $99. Robert inquires about prior two-year sales, which totalled $4.5 million two years ago and $3 million last year.
The SpiritHoods are doing well, averaging $3 million every year, but they lost $500,000 last year because they attempted to develop too quickly.
They wish to restart the venture, but this time more cautiously, having learned from their failures.
Kevin O’Leary finds the drop in sales from $4.5 million in their best year to $3 million in continuous sales to be “very risky.” He is departing because he does not believe the market can be sustained.
Robert Herjavec invested in a similar company that he claims was “hot” for around two years before the market crashed. He walks away.
Barbara Corcoran “prefers to invest in growing enterprises rather than fading companies.” She, like O’Leary, is concerned about the drop in sales from their peak year. She’s no longer there.
Mark notes that he admires the firm and thinks it’s a novel idea, but the $99 price tag is simply too high for him. He’s no longer there.
Daymond offers $450,000 for a 50% stake in the company, but he wants to license out the SpiritHoods, therefore the price must be reduced.
He believes that in order for the business to thrive, it must go beyond headgear.
After a brief debate, they make a counter offer of 22% plus a royalty on any licensing.
John refuses to negotiate, arguing that he has already suffered from “buyer’s remorse.” He’s gone, and the partnership is no longer in the Shark Tank.
What Happened to SpiritHoods After the Shark Tank Pitch?
SpiritHoods did not obtain a Shark contract, but they did walk away with their company, which aided in the growth of the firm and brand.
In a later interview, Alexander noted that rejecting John’s aggressive proposition benefited the brand because supporters saw it as “not selling out.”
Since its introduction on Shark Tank, SpiritHoods has expanded its luxury brand to include jackets, vests, shawls, and robes for women, men, and children, as well as blankets, throws, and pillows for the home.
Amazon sells a variety of phony brands. As a result, the company’s presence there has diminished.
As of August 20, 2021, annual revenue is $5 million.
What is the Net Worth of SpiritHoods?
Alexander and Chase go on Shark Tank seeking a $450,000 investment in exchange for a 15% stake in their company. This equates to a $3 million valuation.
Who are the Competitors of SpiritHoods?
Savy Mae’s Boutique, Wooden SRL, and Asmat Group Show stoppers are SpiritHoods competitors.
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SpiritHoods FAQS
What is SpiritHoods?
SpiritHoods is a stylish and one-of-a-kind brand of fake fur animal hats (acrylic).
The head is designed like an animal’s head – coyote, wolf, snow leopard, fox, and so on – and is joined to long sleeves and paws that drop from one’s hips, serving as pockets for cash, credit cards, phones, and other valuables.
Who are the founders of SpiritHoods?
Chase Hamilton, Alexander Mendeluk, Marley Marotta, and Ashley Haber are among the players.
How much were they looking for in the Shark Tank?
They were looking for a $450,000 investment in return for a 15% stake in their company.
Did they land the deal on Shark Tank?
No, no agreement was made.
How much are SpiritHoods selling for?
The caps cost $99 each.
Can they dry clean SpiritHoods?
They may be dry cleaned or hand washed in cold water and hung to dry in a cool area away from direct sunlight and any heat vents; heat can destroy wet faux fur.
Is SpiritHoods still in business?
SpiritHoods is still in operation and doing well, having expanded their product line to include a variety of garment alternatives.
They’ve also expanded their product range into athletic goods and partnered with like-minded companies.
Where is SpiritHoods located?
Spirit Hoods LLC is a Vernon, California-based firm that operates in the Apparel Knitting Mills market.
Are spirit hoods warm?
Fit and comfort are excellent. Keep in mind that the hood is extremely warm, which will come in useful when they wear it on icy cold New England winter days while walking to catch and then waiting for a bus.
SpiritHoods are made of what materials?
SpiritHoods are constructed of synthetic fur (acrylic).
When was SpiritHoods established?
The Company was founded in 2009.
Is faux fur washable?
They have the option of washing faux fur by hand or machine. If they do decide to wash the synthetic fur, they should use a high-efficiency washer on the gentle cycle to get the best results.
What happens if real fur gets wet?
It is OK to get a real fur coat wet. Animal fur is naturally water resistant due to the guard hairs and natural oils found in furs, keeping the hide dry.
If their actual fur becomes wet, it’s vital that they dry correctly without damaging or drying out the fur or pelts.
How do they wash a faux fur vest?
Handwashing faux fur and fur-like items is always the best and most secure solution. Fill a sink or washbasin halfway with cold water, then add 2 capfuls or a spray of the Wool & Cashmere Shampoo.
Submerge the object in water and gently agitate the water with their hands to evenly distribute the soap. Soak for up to 30 minutes in the tub.
What is SpiritHoods corporate responsibility?
SpiritHoods is dedicated to ethical business practices.
This involves reducing their environmental effect, employing sustainable and environmentally friendly production techniques, and supporting sustainable development programs.
They contribute 10% of their net income to support endangered animals.
