In Shark Tank season 9 episode 16, San Diego entrepreneurs Lindsay Barto and Chris Healy pitched their men's hair accessories company seeking $95,000 for 10% equity. Founded in 2014 by two digital marketing agency owners, The Longhairs offers masculine-designed hair ties.
During the pitch, Mark Cuban jokingly declared "Kevin's out”. To which, Kevin O'Leary quickly responded:
"I may grow my hair back for this deal."
Moments later, O'Leary, Cuban, John, and Robert grabbed demonstration wigs and wore them, creating one of the show's standout moments. In the end, the founders left the Shark Tank with Cuban’s offer in exchange for 20% equity.
Shark Tank investors donned wigs during men's hair accessories pitch
Barto and Healy opened their Shark Tank pitch by addressing a common problem of men with long hair. The founders displayed their signature products - hair ties featuring designs like camouflage patterns, shotgun shells, and surfboards.
Each tie cost $1.60 to manufacture and sold for $12 retail. Their background in digital marketing helped them build a strong online presence through targeted content and community engagement.
The entrepreneurs shared samples with the Shark Tank investors, explaining their manufacturing process and quality control measures. They highlighted their success in direct-to-consumer sales through their website and Amazon marketplace. The founders emphasized their focus on building a dedicated customer base through consistent engagement and product quality.
The negotiation heated up when Kevin O'Leary showed strong interest in the company's potential. He structured an offer of $95,000 for 10% equity plus a $2 per unit royalty until reaching $200,000. During this discussion, O'Leary grabbed one of the demonstration wigs, put it on, and created a memorable moment that had all Sharks laughing.
Mark Cuban jumped into the negotiations with his perspective on the company's growth potential. He offered $100,000 for 25% equity, starting a back-and-forth discussion about valuation. The founders countered his offer, looking to maintain more equity in their growing business.
The negotiations shifted when Mark Cuban adjusted his offer to 20% equity for $100,000. The founders considered this revised deal against O'Leary's royalty-based proposal. After evaluating both options, Barto and Healy accepted Cuban's offer.
Post-tank performance
As per the Shark Tank Blog, The Longhairs experienced significant growth following their Shark Tank appearance. Their deal with Mark Cuban closed successfully, leading to expanded operations. The company hit a major milestone in 2020, reaching $1 million in lifetime sales.
The company also made changes to its business model. They stopped selling on Amazon due to challenges with knockoff products flooding the marketplace. Instead, they focused on direct sales through their website, maintaining control over their brand and customer experience.
The Longhairs expanded beyond their original hair tie products. In 2021, they launched Apex-Level Hair Care, a comprehensive line of men's hair care products. This collection includes shampoo, conditioner, dry shampoo, leave-in conditioner, and sea salt spray. The founders marketed these products as "made for guys with long hair but preferred by women over leading salon brands."
The company donates 1% of revenue to Children With Hair Loss, supporting young patients needing hair replacements. In 2019, they organized The Great Cut event, collecting 339 pounds of hair donations. Despite falling short of breaking the record in their 2023 event, they maintained strong community engagement.
This combination of product innovation, strategic business decisions, and community involvement has helped The Longhairs maintain steady growth. From their memorable pitch featuring O'Leary in a wig to reaching over $3 million in lifetime sales by August 2024, the company continues to serve their niche market of men with long hair.
Shark Tank season 16 is airing on ABC network.