"A little out of my wheelhouse" — When Shark Tank guest investor Gwyneth Paltrow rejected Cincha Travel

James Baker and fiancée, Ashley Sharma appeared on Shark Tank season 14, episode 19, which aired on April 7, 2023. The couple sought $200,000 for 15% of their company, Cincha Travel, which sold belts designed to keep carry-on bags secured to the suitcases, making traveling hassle-free. Although impressed, guest investor Gwyneth Paltrow refused to invest in the company, saying:

"I would just like to say, like, I'm super impressed with what you guys have built. It's a little out of my wheelhouse. As an investor, I think I'm out, but, I just, I love you guys."

Shark Tank panelists Mark Cuban and Lori Greiner also removed themselves from consideration, citing various reasons for their decision. However, Kevin O'Leary and Barbara Corcoran believed in their potential and presented the business owners with offers. After some deliberation, the couple shook hands with Barbara and turned down Kevin's proposal.

Cincha Travel's best-selling travel belts sold out shortly after the episode aired. The company expanded their product line, introducing new items like the Belt Buddy. Cincha Travel also launched themed collections like the Italian collection in 2023. The company now has a reported annual revenue of $5 million.

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"Doesn't fit really to my strengths" — Shark Tank panelist Mark Cuban refuses to invest in Cincha Travel

While demonstrating their product, the Cincha Travel entrepreneurs mentioned that their travel belts blended style and functionality. By securing personal bags to the main suitcase, Cincha Travel's belts enabled travelers to enjoy their trip without carrying any extra load.

"Using the travel belt really is as simple as slide, cinch, and go," James explained.

The business owners then handed out prototypes to the investors and received positive feedback. Shark Tank expert Lori Greiner said the products were "very heavy duty," which reminded her of the car seatbelts.

When Gwyneth asked the founders about their backgrounds, James revealed that he grew up homeless due to difficult circumstances. However, he remained motivated and determined to stay on the right path because of his parents. By 21, he was at Harvard Law School and later, joined a firm as a lawyer.

Ashley also had a difficult childhood and struggled with academics. However, she pushed through and got a degree in marketing. Since then, she had been working with start-ups.

When Shark Tank panelist Kevin O'Leary asked them about their sales, James said they made $5000 in 2019, $32,000 in 2020, $250,000 in 2021, and were at $830,000 in 2022. Ashley then stated that they were a completely direct-to-consumer company.

James added that their flagship travel belt cost $4.61 to make and retailed for $40. Hearing that, Kevin inquired about the customer acquisition cost.

"So the customer acquisition cost vary between $27.50 and $29 on an average order value of about $61.50. So, it's high. It's definitely something we want to get down, but we still been able to grow," James said.

Gwyneth then asked the founders about their strategy moving forward. Ashley shared that they wanted to get into retail and airport stores. Although she backed out of investing, Gwyneth appreciated the couple's journey and wished them the best.

Soon after, Mark chimed in, expressing a similar sentiment to Gwyneth's. He said:

"Congratulations on what you've accomplished. I think it's an amazing business. It just doesn't fit really to my strengths. So for those reasons, I'm out."

Lori followed suit and removed herself from consideration, saying she had a partner who made products similar to Cincha Travel.

Shark Tank investor Barbara Corcoran was impressed by the couple's dedication. She believed they had ambition and could turn their company around. As a result, she decided to present them with an offer. Barbara sought 33% of the company in exchange for $200,000, half of which would be a line of credit.

Meanwhile, Kevin offered $200,000 in exchange for a 20% stake and a $4 royalty per unit until the capital was recouped. Then, the royalty would reduce to $0.50 per unit in perpetuity. After some thought, James asked Barbara if she would do the same deal but at a reduced equity of 25%. The Shark Tank panelist accepted the counteroffer and finalized the deal.

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Shark Tank streams on Amazon Prime Video.