We all use handbags to carry our things around which we use all the time. Especially, smartphones are at the top of the list to carry anywhere we go. However, in an oversized bag, there is a bundle of things which creates a hindrance to easily checking on our phones. Even though we can carry phones in our hands it has the chance of slipping out.
Kelly Coughlan and Jenn Deese, the owners of Pursecase, have introduced a perfect product to carry our phones around. Their product is a mini phone clutch that is designed to carry our phones and important ID and ATM cards in a stylish way.
Moreover, the clutch also comes in different colors along with a bracelet-like handle to accessorize our arms as well. It also comes with a compact mirror to check on our makeup too.
The owners came on Shark Tank to request $55K for 12% of their company. They also brought with them different colors of their phone clutch for every shark on the set. Let’s see if they got the deal or not.
Pursecase Net Worth Shark Tank Update
Kelly Coughlan and Jenn Deese were seeking a $55,000 investment for a 12% equity stake in their company, Pursecase. This means they valued their company at approximately $458,333 at the time of the show. After successfully securing a deal with Lori Greiner for $55,000 in exchange for 15% equity, the company’s adjusted net worth became around $366,667. Unfortunately, despite the initial success, the company eventually shut down. As a result, the current net worth of Pursecase in 2024 is estimated to be $0.
$55K for $1 of every sale, until the loan was paid off, at which point the royalty would drop to 0.75 cents for perpetuity
No
Mark Cuban
Out
N\A
N\A
Lori Greiner
$55K for 12% equity
$55K for 15% equity
Yes
Robert Herjavec
Out
N\A
N\A
Barbara Corcoran
Out
N\A
N\A
The Owner’s Backstory
Just like every other girl, Kelly and Jenn also wanted to look stylish with their clutch and also wanted to carry their phone with them everywhere they went. Obviously, they were using handbags but they made it difficult to immediately access the phone whenever it rang. This became the cause of the Pursecase launch.
The product is basically a phone clutch with a stylish handle to carry it as a bracelet. It also comes with a compact mirror along with a small pocket to carry cards around.
Initial Pitch
The owners came on the show to seek $55K for a 12% equity stake. Their product is a three-in-one stylish phone clutch that not only has a phone space and pocket with a handle but also a compact mirror, making it a stylish and functional choice.
Queries about the Product
Lori asked the first question regarding their purse varieties with respect to different models of smartphones. Kelly answered that currently they have clutches for iPhone 4 and 5 but their utility patent is on the way for the pocket and the handle.
Kevin then inquired about the sales. Jenn replied that although they had just initiated they had made $30K in the first 3 months just from preorders. Their estimation of a whole year amounts to $240K.
Herjavec questioned regarding the cost it takes them to make a single unit. The owner answered that it cost them $4.42 to make and they wholesale it for $15 and $38 for retail. Kelly also added that their margins become 88% online and 71% in retail.
Kevin showed concern regarding the high price of the product. Kelly pointed out that they had already done a PR whose outcome was very wholesome. Even a manufacturing business also approached them and they got a deal of $1M credit line for 15% in their company.
Herjavec then wanted to know about their plans regarding the $55K they are demanding. The owner answered that they want to utilize that money in making molds for Samsung Galaxy S4 which is in demand right now.
Shark’s Response and Final Decision
After hearing about a similar product selling on QVC by Lori and the same product already selling on streetside in the market, Herjavec dropped out of the deal.
Corcoran also backed out after highlighting that she would prefer a clutch with a space for change and without a snap flap.
Cuban then backed out as he had no interest in the accessory business.
Kevin finally offered them $55K for $1 of every sale, until the loan was paid off, at which point the royalty would drop to 0.75 cents for perpetuity.
Lori confidently related that if she can sell thousands of similar products, she can definitely sell their phone clutches too. She then offered them $55K for a 15% equity stake.
The company enjoyed success under Lori’s support for a while but they eventually shut down. It was reported that the two owners couldn’t sustain their relationship for long and ended up with Kelly buying Jenn’s share in the company. Kelly then worked on her own and came on Shark Tank again but couldn’t survive much. That is the final report from the business.
Conclusion
Despite getting a deal from the QVC queen, Pursecase still didn’t survive on a practical level. They tried for a while and even afterward Kelly remained fixed with the business but unfortunately, it didn’t last long.
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.
