Styling and caring for hair can be challenging, especially if you have tightly curled or textured hair. People with curly hair often spend a lot of time managing and preparing their hair, especially before special events. The unique texture of curly hair can make it more difficult to control, requiring extra effort and patience to get the desired look.
Dawn Myers, the owner of Richualist, has introduced a styling system for all curly ladies. Her product is a mint, patented, and 3-in-1 styling system that is not only easier to use but also faster and healthier. The system works by filling the pod with the hair product of one’s choice and then the system gets heated up. The brush part is then used to detangle and apply the formula on the hair, making them juicier and shinier.
The owner came on Shark Tank to request $150K in exchange for 10% in her company. She also presented the sharks with her styling gadget to highlight its functionality. Let’s see if she got the deal or not.
Richualist Net Worth Shark Tank Update
Dawn was looking for an investment of $150K in exchange for 10% equity in the company. At the time of the episode, she valued her company, Richualist, at $1.5 million. Dawn successfully secured a deal with Mark Cuban and Emma Grede for an investment of $150K for 15% equity and 5% advisory shares in the company.
The investment adjusted the company’s net worth to around $1 million. After the show was aired, the company experienced a good boost in exposure. As per my rough estimate, the current net worth of Richualist in 2024 is around $3.5 million.
Shark(s) name
Offer & Demand
Counteroffer
Accepted?
Kevin O’Leary
Out
N\A
N\A
Mark Cuban + Emma Grede
$150K for 10% equity
$150K for 15% equity + 5% advisory shares
Yes
Lori Greiner
Out
N\A
N\A
Robert Herjavec
Out
N\A
N\A
The Owner’s Backstory
Dawn related that her background is in law and she had no expertise in beauty or engineering. Her mom always used to look after her hair but whenever she went on holiday to meet his father her hair always ended up messy as he and her stepmother didn’t know how to handle them. In 2017, while she was watching Shark Tank, she decided to work on a product that would solve curly hair problems.
The prototype took five years to shift into a serious product. During this journey, she sold her home as well, which shows her dedication to the business.
Initial Pitch
The owner came on the show to seek $150K for 10% equity stake. The product is a patented system that makes hair styling easy for people with coarse and curly hair texture. The product is specifically designed to work on 4C hair but it can also be used by people with loosened curls as well.
Queries about the Product
Kevin asked the first question if a customer can buy a couple of serum cartridges from her at a time. Dawn replied in the affirmative and added that she is also in touch with different brands for co-branding her system pods with their products.
Mr. Wonderful was curious about the selling price of the product. The owner mentioned that it currently sells for $400. This high price point is because of her small batch of products which was due to COGS (cost of goods sold).
Lori inquired about the quantity of that batch. She related that it was basically 100 units.
Kevin asked about the cost for that 100 units of the product. It was about $120 per unit. She added that another batch of her product is on the way from China which cost her $60 landed for per unit. This will then reduce the selling price of the product as well.
Cuban asked that if her product is already selling out at $400 then why is there a need for more products at smaller selling rates. She highlighted that she wants to sell more pods which is the real part of her product.
The shark also inquired about the selling price of the pods. Dawn related that they are basically selling in a group of six on a subscription basis. One pod sells for $6 and $36 for a month.
She also added that it cost her $1M to make a prototype and then test it.
Emma, the guest shark, asks about the ownership of her business. Dawn mentioned that she does not own the whole business. She basically raised $1M in venture-backed funding.
Herjavec was curious to know the equity she gave away for that $1M. She replied that the investment is based on convertible notes and she still owns 72% of the company.
Kevin asked about her plans of selling the product which cost her $60. The owner mentioned that she plans to sell them at $200 per unit.
Emma also wanted to know her plans for the product. She related that she has already had a meeting with Loreal and Procter and Gamble for a strategic partnership for co-branding these pods.
Shark’s Response and Final Decision
Kevin was the first shark to leave the deal as he thought she needed a partner with hair to help her out.
Herjavec was next in passing the deal as he considered himself a misfit for the business.
Lori also backed out because she is already working on a similar product.
After advising Dawn for only focusing on the system, Emma and Cuban combinedly offered her $150K for 20% equity in her company.
Dawn then counter-offered to them $150K for a 15% equity stake.
Emma and Cuban then revised their offer to $150K for 15% equity along with a 5% advisory share. Finally, Dawn accepted their offer and left the tank with two sharks by her side.
Product’s Availability
After getting a deal with two sharks, the revenues have gone up but the company still faces challenges. She noted that managing logistics is complex, with a popular product, long wait times, and back orders, which can make it hard to secure sales. However, despite these hurdles, customers have continued to buy.
Dawn also confirmed that the deal with Cuban and Emma went through successfully. She shared that working with them has been positive, though, like any partnership, it takes time to develop. Together, they are focusing on improving the supply chain. As of May 2024, the product remains available only for pre-order, with deliveries expected in September 2024.
Dawn, the founder of Richualist, got a deal on Shark Tank with Cuban and Emma, who invested $150K for 15% equity and 5% advisory shares. Despite challenges with logistics, long wait times, and back orders, demand for the patented 3-in-1 curly hair styling system remains high, as it simplifies the styling process and improves hair texture.
Working alongside her new investors, Dawn is focused on strengthening the supply chain to meet demand. Currently, the product is only available for pre-order on the Richualist website, with deliveries set for September 2024.
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.
