Hood Hat Shark Tank Update – Net Worth, Pitch & Deal

Have you been searching for high-quality hats that fit just right? Look no further than Hood Hats. Specializing in top-notch ball caps, they were recently featured on episode 21 of ‘Shark Tank’ Season 15 on ABC.

With each region having its unique style of headwear, Hood Hats caters to diverse preferences, capturing the essence of different areas through their designs. From urban chic to laid-back beach vibes, there’s a Hood Hat for every style. There is also a range of customizations in texture, fabric, and design.

The entrepreneur behind Hood Hats asked for $500K for a 5% stake in their company on ‘Shark Tank’ – did they strike a deal? Keep reading to find out!

Hood Hat Net Worth

Hood Hat offered 5% equity in the company for an investment of $500,000. This shows that the entrepreneur valued their company at $10 million, which is not true and is an overvaluation. Sharks also mentioned this overvaluation of the company. Despite making an outstanding $1.9 million in sales, the company has not been profitable yet. Plus, they couldn’t secure a deal on Shark Tank. As per the company numbers and calculations, Hood Hat net worth is estimated at $1.5 million. This valuation is based on the company’s total sales and expected growth. This is my rough estimation. So, the actual net worth might vary based on the company’s growth and future financial conditions.

What Happened To Hood Hat After Shark Tank?

Shark Tank Season 15 fans slam Hood founder for ‘ridiculous’ and ‘not affordable’ $90 custom baseball caps.

People watching ‘Shark Tank Season 15 shared their thoughts on Reddit about Hood Hats’ prices. One person said they couldn’t imagine spending $90 on a hat with their hometown name on it when they could get a similar one on Etsy for about $25.

Another person mentioned that even hats sold at places like the Dodgers stadium aren’t usually that expensive, usually around $50. These comments show that many people think Hood Hats might be charging too much compared to what’s usual.

Did Hood Hat Get A Deal On Shark Tank?

No, Hood Hat did not get a deal on Shark Tank. Despite pitching their business to the sharks, they faced criticism, and ultimately, none of the investors offered to make a deal with them.

Shark(s) InvolvedOffer madeDemandCounterofferAccepted?
Barbara CorcoranOutN/AN/AN/A
Lori GreinerOutN/AN/AN/A
Mark CubanOutN/AN/AN/A
Kevin O’LearyOutN/AN/AN/A
Michael RubinOutN/AN/AN/A

Hood Hats Shark Tank Update

hood hat net worth

Hood Hat, a luxury headwear company, entered the Shark Tank seeking $500k for a 5% stake but faced tough scrutiny from the investors. Despite impressive sales figures totaling $1.9 million, the sharks were concerned about the company’s lack of profitability.

With hats priced at $90 but costing only $14 to make, the high markup raised eyebrows among viewers. Ultimately, none of the sharks were convinced by Hood Hat’s valuation and business model, leading to the company leaving the Tank without a deal.

Founder BackStory

Max Nelson, who grew up on Staten Island, got the idea for Hood Hat from his childhood. He spent a lot of time playing stickball at his elementary school. After graduating from Staten Island Academy, he went to Davidson College.

In 2016, Max bought a house in Brentwood and started renovating it. He needed a good baseball cap to shield himself from the sun, but he didn’t like most of the caps he found in stores because they were too flashy. Finally, he found a simple cap for about $6.

Max took a simple $6 hat and had “Brentwood” printed on it by a small manufacturer. A salesman at a Sid Mashburn store noticed Max’s modified hat and suggested switching the material from an acrylic blend to 100% wool.

This advice sparked Max’s interest in pure wool hats, but he discovered that no one in the market was making them. His search led him to a man in New York who had the perfect fabric. Max used this fabric to make a new hat, which made the original feel cheap in comparison.

Encouraged by this improvement, Max decided to create more hats using the same high-quality fabric and fit. He expanded his product line to include ten different caps, each representing a different neighborhood in the Los Angeles area.

Initial Pitch

what happened to hood hat after shark tank

In his initial pitch, Max said, “We use high-quality materials like merino wool, gabardine, cashmere, and Japanese twill. The goal is to give customers a hat that not only fits better but also matches the quality of their other clothes.”

He added, “HOOD designs and makes classic, customizable luxury hats. We aimed to shake up the usual hat market, and by doing that, we created a new category: luxury headwear.”

You can look on Hood Hats’ website to see if they have a hat for your city or town, or you can design your own. They also offer hats with state logos, sports logos (unlicensed), and “Swiftie” logos, among others.

A personalized hat costs between $70 and $90. Generally, the prices range from $65 to $120, depending on the style of the cap. However, they often offer discounts like 40% off when you buy ten or more hats and a Buy One, Get One 50% off deal.

Queries about the Product 

Sharks asked about money, and Max told them that he had financed Hood himself for the first two years. After that, he raised some money from friends and family. The company has not taken any money from big investment firms because it takes pride in growing on its own.

Barbara asked, “You’re asking for $500k for 5%, so you must have some big sales numbers.”

Max replied, “Yes, we’ve made a total of $1.9 million in sales so far.”

When the sharks asked when he started, Max said, “We started in spring 2018, and that year we made $18,000 in sales. In 2019, we made $23,000. In 2020, we introduced a customization platform for customers and made $364,000. Then, in 2021, we made $508,000. Now, we’re aiming to hit $1 million in sales this year.”

Shark Responses and Final Deal

did hood hat get a deal on shark tank

When Kevin asked if Hood Hats was making any money, Max delivered some tough news. Despite the positive sales figures he shared earlier, Max admitted that the business wasn’t profitable yet.

Mr. Wonderful got upset, pointing out that despite seeking a $500k investment for a 5% stake with a $10 million valuation, the company didn’t have any free cash flow in a business where hats are a common item. He thought Hood Hats might face some tough challenges ahead.

Mark Cuban wanted to know the profit margins. Max revealed that the hats cost $14 to make and sell for $90, with an additional $10 for customization. This led some viewers to question why the company wasn’t profitable despite the high markup.

Mark Cuban criticized the asking price, saying it was too high compared to the company’s revenue and asking for half of their estimated revenue was unreasonable. He decided to pass on the deal.

Mr. Wonderful also declined to invest, feeling that the valuation wasn’t justified. He expressed his disappointment, saying that in the past, he would have strongly criticized such a valuation.

Barbara, Lori, and Michael Rubin echoed similar sentiments and decided not to make an offer. Their main concern was that the business had been around for a while but still wasn’t profitable.

What Went Wrong With Hood Hat On Shark Tank?

Hood Hat faced criticism on Shark Tank because despite seeking a high valuation, they weren’t profitable yet, and their business model didn’t convince the sharks that they could generate sustainable profits in the future.

Product Availability

The prices of the caps typically range from $65 to $120, depending on the type. However, there are often discounts and promotions available, such as 40% off when you buy ten or more hats and a Buy One, Get One 50% off deal. These offers are available on the website.

Conclusion

In conclusion, Hood Hats’ appearance on ‘Shark Tank Season 15 sparked debate among viewers over the affordability of their custom baseball caps, with many expressing skepticism towards the $90 price tag. Despite showcasing impressive sales figures, the company faced criticism for its pricing strategy and market competitiveness.

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