Babies require a lot of extra care because they are delicate and sensitive beings. They have a challenging routine, especially when it comes to sleeping. Finding a cozy and comfortable place for them to rest can be quite difficult. It’s important for their blankets to be clean and soft so they can enjoy a good night’s sleep. When babies are comfortable, they are much happier. However, if their blankets are not soft or clean, they might feel irritated, which can lead to crying and fussiness throughout the day.
Alexandra Ulmer, the owner of AU Baby, has launched a cozy basic accessory for all babies to keep them happy. Her product is a blanket that is the very first and sustainable collection of its type. It is made with fibers that are built just for babies and are made by a knitwear design expert. Moreover, the blanket has the capability of staying clean for a whole year and is naturally stained too.
The owner came on Shark Tank to request $80K in exchange for 25% of her company. She also presented the shark with her popcorn blanket, made with 100% extra-fine Merino fiber which is a type of wool, to get the deal of her choice by making the sharks cozier. Let’s see if she got the deal or not.
AU Baby Net Worth Shark Tank Update
Alexandra was looking for an investment of $80K in exchange for 25% equity in AU Baby. At the time of the episode, she valued her company at $320K. Alexandra successfully secured a deal with Kevin O’Leary for an investment of $80K for 35% equity in the company. The investment adjusted the company’s net worth to around $229K. After the show was aired, the company experienced a good boost in exposure. As per my rough estimate, the current net worth of AU Baby in 2024 is around $1 million.
Shark(s) name
Offer & Demand
Counteroffer
Accepted?
Kevin O’Leary
$80K for 25% equity
$80K for 35% equity
Yes
Mark Cuban
Out
N\A
N\A
Lori Greiner
Out
N\A
N\A
Robert Herjavec
Out
N\A
N\A
Emma Grede
Out
N\A
N\A
The Owner’s Backstory
Alexandra related that she is a knitwear design expert and she started her career in luxury fashion at Prabal Gurung. Then for the last seven years, she worked as a hybrid knit designer and engineer at Nike designing performance fabrics for top athletes including LeBron James. Afterward, she left that job to work on her business of making sustainable blankets for kids.
The owner came on the show to seek $80K for a 25% equity stake. The product is a baby blanket that is hand-knit and stays clean for a whole year. They are odor-proof as well. The blanket helps with babies’ sleep schedule and skin care issues by regulating the temperature, giving a cozy environment, and absorbing sweat.
Alexandra also provided the sharks with a sample of her Italian plant dye material and highlighted her blankets are the first to be dyed with plant-based dye, which is guaranteed to stay on even after several washes.
Queries about the Product
Lori asked the first question about his concentration on making baby blankets instead of the adults. Alexandra highlighted that babies are more sensitive and can be affected easily because of toxins in our surroundings. Moreover, the majority of baby’s clothing accessories are made from artificial polyester and acrylic. Thus, she thought it would be suitable to work on a baby’s blanket.
Kevin then inquired if there was a cost factor behind making baby blankets. The owner replied in the affirmative and said that Americans are more attracted to cheap disposable fabrics and the material she uses to make the blanket is three times more sustainable than the traditionally used fabric.
Herjavec was curious to know about the cost of making a blanket and its selling price. She related that it costs her $74 to make one and they are made in Los Angeles. Then she sells a unit for $160.
Emma, the guest shark, then asked about the way she is actually educating her customers about the benefits of the blanket. She is basically educating the people through social media.
Kevin wanted to know about her last year’s and then the current year’s sales. Alexandra pointed out that last year she made around $38K and her lifetime sales are $62K. For this year they have made $14K and are expecting to make $100K at the end of the year.
Herjavec then inquired about her medium of selling the blankets. She highlighted that currently, she is selling directly to consumers.
Mr. Wonderful was interested to know about her customer acquisition cost. Her method is not like traditional marketing, so she is not sure about her cost. She is not using digital marketing but a PR firm that specializes in juvenile products.
She is also planning to partner with some of the top pediatric specialists. Moreover, she has been featured on top 20 podcasts.
Shark’s Response and Final Decision
Herjavec was the first shark to drop the deal as he thought the price of the blanket was too high.
Cuban followed Herjavec and decided to back out too because he was concerned regarding her lack of marketing the product.
Lori and Emma highlighted that the product is not investable and has a very high price compared to her other competitors. Thus, they passed the deal too.
Kevin offered her $80K for 50% of her company.
Alexandra then counter-offered him $80K for a 30% equity stake.
Kevin revised his offer and lowered his equity to 40%.
Alexandra counter-offered him for the second time $80K for 35% equity in her company. Finally, Kevin accepted her second counter-offer and she left the show with a deal on her hands.
Product’s Availability
It’s still a bit early to say how the deal turned out or if it went through completely with Mr. Wonderful. Along with a nice increase in sales, her brand has now been put forward to millions of parents, which will be a big help for marketing. The company also offers custom monogramming on its blankets, making them a great baby gift if you are willing to spend a little extra.
Speaking with a local ABC station the Wednesday after the show, Alexandra shared her excitement, saying she “formed a great partnership with Mr. Wonderful and really thrilled.” The product can be found on the Au Baby website.
Conclusion
Alexandra, a knitwear expert and former designer for top brands, introduced her sustainable baby blanket business, AU Baby, on Shark Tank, where she sought a $80K investment for 25% of her company. Despite facing tough questions about her pricing and marketing approach, Kevin partnered with her, ultimately settling on $80K for 35% equity.
With thee exposure from the show, AU Baby has gained the attention of millions of parents, increasing brand visibility and helping Alexandra’s mission to provide safe, eco-friendly, and high-quality blankets for babies.
Hey there, it’s Andaleb Youns. I am a freelance content writer and am currently pursuing a BS in English Language and Literature. I have expertise in writing Blog Posts, social media content, and copywriting. I know how it feels to be a student and still be dependent on parents to fulfill even basic daily needs. This realization became apparent while watching Shark Tank. Although I started watching this show out of boredom, it proved to be an inspirational show. The show made me realize the importance of hard work, being independent, and of having a business of my own. I still look forward to it for entertaining and inspirational content.
