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Range Beauty secured a dual-investor partnership during Shark Tank season 13. Founders Alicia Scott and Myisha Fantroy presented their makeup line for women of color with sensitive skin, seeking $150,000 for 6% ownership.
After Mark Cuban, Barbara Corcoran, and Kevin O'Leary declined to invest, Lori Greiner and Emma Grede offered $150,000 for 20% equity. When the founders attempted to negotiate better terms, Lori Greiner emphasized the value of their offer.
"You're going back into the other direction. What she says is so true because for some people it's impossible to even get in, but it's staying on the shelf. That's hugely important. If you don't, they're as quick to knock you out because it's valuable real estate and it's limited. So I think we've given you an amazing offer," Greiner stated.
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In the end, Scott and Fantroy accepted the deal.
Range Beauty accepts $150,000 deal from Lori and Emma on Shark Tank
Range Beauty started negotiations by valuing their company at $2.5 million. The financial growth of Range Beauty showed a strong market response. The Shark Tank pitch attracted different levels of interest from the Sharks. Mark Cuban quickly moved away from potential investment, mentioning his unfamiliarity with cosmetics products and market dynamics.
Barbara Corcoran followed a similar path, expressing doubt about her ability to boost the company's growth trajectory. Kevin O'Leary recognized the brand's market position but chose to step back from making an investment offer.
The discussion shifted when Lori Greiner and Emma Grede stepped forward with their joint proposal. Scott and Fantroy first suggested keeping 90% ownership while accepting the $150,000 investment.
When this met resistance, they proposed a modified deal of $200,000 for 20% equity. Greiner and Grede stayed firm with their initial offer, emphasizing their combined experience in retail distribution and beauty markets. The Shark Tank company founders evaluated the partnership potential and agreed to the $150,000 investment for 20% ownership.
Product background
From a modest beginning with $300 in 2017, Range Beauty built steady momentum. Their revenue reached $30,000 in 2018, followed by $45,000 in 2019. A significant jump occurred in 2020 with sales hitting $330,000. The growth pattern convinced Scott to move into a full-time leadership role.
The Shark Tank company's strategy of offering sample kits proved effective, with 80% of customers making additional purchases. Their pricing structure maintained strong margins, setting retail prices at $21 while keeping production costs at $4.25 per unit. The wholesale pricing landed at $10.50, positioning the brand in the middle market segment between affordable and luxury offerings.
Range Beauty line features 21 foundation shades, addressing skin conditions through specialized formulas. The manufacturing process incorporates natural ingredients like French clay and cornflower.
The Shark Tank company maintains strict quality standards while keeping production costs at $4.25 per unit. Their Target partnership proved the pricing strategy worked, with consistent sellouts in retail locations. The sample kit program emerged as a key sales driver. Customers receive multiple shade options to find their match, leading to an 80% return purchase rate.
Post-deal growth
The appearance generated an immediate market response. As per Shark Tank Blog, The company received 1,000 orders for their True Intentions Hydrating Foundation Sample Kit in the days following the episode. Target expanded its retail partnership based on strong performance data. The company launched strategic pop-up shops with Nordstrom, testing new market opportunities.
Sephora recognized the brand's potential, selecting Range Beauty for their 2023 Accelerate Brand Incubator Program. The company reached $3 million in annual revenue through these combined channels. Range Beauty is now moving toward additional expansion, engaging in discussions for $1.5 million in venture funding.
Fans can watch new episodes of Shark Tank on ABC network.
