Rumpl Puffy Blankets
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 16, 2020
Asking For:
$600,000 for 4%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Rumpl offers durable, weatherproof, lightweight blankets made from new-age materials, including 60 recycled plastic bottles, with a focus on environmental responsibility.
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Background Story
Wylie, the founder of Rumpl, presented his company on Shark Tank, highlighting how traditional blankets hadn’t seen much innovation despite advancements in textiles. He emphasized the versatile and weatherproof qualities of Rumpl blankets, which are not only warm and cozy but also repel pet hair, debris, and stains.
The inspiration for Rumpl came from a harrowing experience during a ski trip where Wylie and his friend were stranded in freezing conditions. This ordeal led them to create a sleeping bag blanket using modern materials.
Their dedication to protecting the environment is evident in using 60 recycled plastic bottles for each blanket and offsetting 100% of their carbon footprint, along with donating 1% of sales to environmental causes.
The Product
Rumpl blankets are designed with modern materials that are durable, lightweight, and weatherproof, making them suitable for both indoor and outdoor use. They repel pet hair, debris, and stains, ensuring easy maintenance.
The blankets are made from 60 recycled plastic bottles, contributing to environmental sustainability. The unique hollow fiber synthetic fill provides warmth and comfort while maintaining a thin profile.
Rumpl blankets are available for purchase online, including platforms like Amazon, and are sold in retail stores like REI. They come in various designs and sizes, catering to different preferences and uses.
Price: $70-235
How It Went
The company’s position before Shark Tank
Rumpl’s sales had shown a steady increase since its founding in 2013, with revenue reaching $8.8 million in 2018. However, a substantial portion of that revenue was generated from just two large corporate accounts, leading to a significant drop in sales afterward. The company had raised funding through two seed rounds totaling about $1 million and an A round raising $3.8 million. As of the presentation, Rumpl had $3.5 million in the bank.
While the company primarily sells online through platforms like Amazon, they also have a presence in retail stores, including REI. Rumpl faces competition from approximately 15 similar companies in the same market.
The Negotiations:
During the negotiations on Shark Tank, Wylie from Rumpl sought a $600,000 investment in exchange for a 4% stake in his company. However, the Sharks were cautious and had varying reactions to his valuation. While all the Sharks were intrigued by the innovative blankets made from modern materials, some expressed skepticism about the business’s current value.
Blake and Daymond John offered a joint deal of a $600,000 loan for 5% royalty on sales for 2 years, and 4% equity, with the intention of focusing on expanding the business’s wholesale and licensing channels. Lori made no offers. O’Leary offered $600,000 for 4% equity, with a repayment structure based on $10 per blanket until he recouped $1.8 million. Daymond then bowed out leaving Blake alone in the first offer.
Despite these offers, Wylie ultimately turned down all deals. He expressed appreciation for the opportunity, but couldn’t find common ground with the Sharks on the equity stake they were seeking. Wylie’s decision to decline the offers left the Sharks disappointed but highlighted the challenge of valuing a business with a strong product but substantial competition. The negotiations showcased the balance between securing investment and maintaining control and equity in a growing company.