On Shark Tank Season 10 Episode, Kevin O’Leary is renowned for his ruthless candor, and his response to The Handbag Raincoat was no different. Founders Morgan Georges and Arley Byars encountered criticism when they introduced their ground-breaking device back in 2018, which was intended to shield purses from rain. The entrepreneurs walked down the red carpet seeking $300K for a 25% stake in their company.
Although they presented it as a chic and useful option for handbag enthusiasts, the sharks weren’t persuaded by its scalability. In particular, O’Leary lost little time in dismissing the profitability of the product.
“No way to make money with you,” he said plainly, putting an end to any investment expectations.
The creators found it difficult to persuade the sharks that their product could bring in a sizable sum of money, and their pitch was overshadowed by worries about scalability and low demand. Although they highlighted The Handbag Raincoat’s usefulness, the sharks believed it lacked a solid business plan and mass-market appeal. The project failed to attract investor interest and was unanimously rejected because there was no obvious route to big sales volume or repeat business.
When The Handbag Raincoat appeared on Shark Tank Season 10 Episode 5
The founders of The Handbag Raincoat took the stage on Shark Tank Season 10, Episode 5 in an attempt to close a deal for their innovative rain-resistant handbag accessory. With confidence in its viability, they offered their creative yet straightforward answer. It was quite difficult to persuade the sharks of its market potential, though.
Founders of The Handbag Raincoat pitch
The founders of The Handbag Raincoat entered the Shark Tank seeking an investment of $300,000 in exchange for 25% equity. They introduced their product as a stylish yet functional solution designed to protect handbags from rain. The clear, waterproof covering with a Velcro opening aimed to offer convenience while maintaining the bag’s aesthetic appeal.
During their pitch, they highlighted their early success, revealing that they had already generated over $600,000 in sales in 3 years. They explained that the product was made for $1.79 and was available online and in select retail stores, retailing between $11, $15, and $20. Despite its practicality, the sharks raised concerns about scalability and the limited nature of the niche market.
The owners positioned their solution as a necessary accessory by highlighting the rising demand for handbag protection. But as the conversation progressed, it became evident that not every shark shared the belief that The Handbag Raincoat might achieve widespread success.
Kevin O’Leary criticised The Handbag Raincoat
When Shark Tank expert Kevin O’Leary questioned the sales figures, the sisters revealed that they hadn’t done any marketing or advertising yet. However, they did reveal that their product had made its place in Oprah and The View and had sold around 10,000 units.
While the number did sound impressive to some, every shark had a different reason to back out from the deal. While some questioned the scalability, O’Leary bluntly said that with their sales and business strategy, they will be put out of the shelves super soon.
By the end, all sharks decided to back out and the duo had to return home empty-handed.
Watch more pitches and deals taking place on Shark Tank on ABC.
Edited by Sohini Biswas
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