Marc Herzberger and Cheng Kue from Colorado, Denver, are here on Shark Tank Season 15, Episode 21. This innovative company has upgraded footwear. The product line has a series of products with detachable straps and long-lasting material. But will the Sharks be interested in Sliders? Let’s check out.
HYPD: Hype Company Net Worth
HYPD Company is still in the recovery stage. Barbara invested $350k for 25% equity in the company. She offered this amount as a credit line. This year, HYPD’s sales are around $60k, and they made around $55k in sales last year. So, as per a rough estimate, HYPD, The Hype Company’s net worth is estimated at $1.5 million.
HYPD Footwear: Hype Company Shark Tank Update
Cheng stated that he was brought up by immigrant parents. They were the first female entrepreneurs in the restaurant industry. He studied Industrial design and worked for big tycoons like Adidas etc. Marc continued further work in finances at Crocus. He worked on supply chains and its evaluation.
What Happened to HYPD After Shark Tank
After its appearance on Shark Tank, HYPD experienced a massive boost in website traffic, social media reach, and following. The episode was recently released, so its effect is still underway.
Did HYPD get the deal on Shark Tank?
Yes, they secured a deal with Barbara. There was a point when all Sharks left out but Barbara offered the deal and saved the HYPD’s deal. Check the insights
| Shark(s) name | Offer | Demand | Counter offer | Accepted? |
| Michael Rubin | Out | N/A | N/A | No |
| Lori Greiner | Out | N/A | N/A | No |
| Kevin O’Leary | Out | N/A | N/A | No |
| Barbara Corcoran | $125,000 for 5% equity | Counteroffer | $350,000 for 25% equity. | Yes ($350k for 25% equity. $100k in cash and $250k as a credit line) |
| Mark Cuban | Out | N/A | N/A | No |
Initial Pitch
Both entrepreneurs Marc Herzberger and Cheng Kue introduced themselves. They are passionate about changing the footwear industry. Their goal is to upgrade boring footwear to an advanced level of attire for every consumer. Their innovative footwear is easy to wear and stylish to carry. Minimal, comfy, and stylish shoes to wear with infinite designs to choose from. Their flexible material makes them more durable and long-sustaining. In the end, they proposed their demand for $125,000 for 5% equity. Lastly, concluded the pitch.
Queries about the Product
Sharks were presented with demo shoes. A customized Shark Tank strap was also presented. Michael begins to inquire about the sources of sales. Marc mentioned that the sales are made directly to consumers, dropshipping, wholesalers, and Target. Sharks walked around with those shoes on. They admired the shoes as being very comfortable.
Lori inquired about the patent. Mark inquired about their purpose. Cheng responded that it covers all the rights. He designs them with his prior experience of decades in this industry. He also mentioned that the supply chain for materials was affected by the pandemic. So, they planned to sell the sole and strap individually as it reduced the delivery time. Barbara exclaimed that it was a very clever move. She then inquired about their backstory.
Michael was curious about the growth of the business. Marc mentioned that they had done over $500,000 in sales in the last 4 years with their original product, Slider. The sales elevated with Slider Pro. Lori wanted to know the difference between them. Marc mentioned that the original Slider is the whole product. Whereas, Slider Pro is a two-component-based product. Mark inquired about the total sales. Marc mentioned that it’s $60,000. Kevin went on with last year’s sales. Marc accepted the fact the sales weren’t good last year.
Kevin inquired about the Cost Acquisition cost for a lifetime. Marc replied that they don’t have value to add to it. Michael inquired how they convinced them to invest. Marc replied that they would go over licenses and do more categories. He mentioned that they can personalize them by ordering them from their website. Mark inquired about the cost to manufacture and the sale price of each unit. Marc answered that the cost to make it is $10.93, which is sold retail at $16 and wholesale at $30.
Shark’s Responses & Final Deal
Lori was the first Shark to back out as she considered the market very competitive. Kevin mentioned that the pitch was good, but they don’t have CA. Due to this, he quit. Mark mentioned that the entrepreneurs should know their business as they are a customization business. But they’re getting licenses for soldiers. Why isn’t it relevant? So he stepped out. Michael mentioned that their business has potential, but he doesn’t find it big enough to invest in. So he quit too. Four Sharks are out.
Barbara mentioned that the direct-to-consumer is good with customization. So, she made an offer. She stated that she would offer $125,000 for 25% equity with $62,500 in cash and $62,500 in credit line. Marc counter-offered $350,000 for 25% equity. Barbara mentioned that she would provide the $100,000 in cash and $250,000 in credit line. Marc and CHen were excited and sealed the deal.
What Went Wrong with HYPD on Shark Tank
The pitch was interesting and cheerful. But Shark mostly quit for specific reasons. For example, the lack of basic business terms like cost acquisition wasn’t on the list. And others left for the competitive marketplace or didn’t find it a great opportunity. Entrepreneurs were well aware of their industry, but they were not well prepared for Shark Tank and investment.
Product Availability
HYPD Company released NCAA collections. Pixelate Slyder Pro CS, Palms Slyder Pro CS, Memphis Slyder Pro CS, Jungle Slyder Pro CS, Jazzy Slyder Pro CS, and Hmong dress and Slyder Pro CS. There are other collections like Overtime. This collection features a vast range of wearable individual styles and tastes. The price starts from $50, and the NCAA collection cost is $60. You can purchase them from their retailers on their website.
Conclusion
Marc and Cheng presented with passion and placed their demand. Eco-friendly, durable, customized, and soft footwear is ready to uplift the footwear industry to the next level. They demanded for $125,000 for 25% equity. However, the Sharks were not interested in their businesses for several reasons. NO CAs, a market that is too competitive, and high-risk business made Shark quit the deal just when all Sharks were about to quit.
Barbara steps in with a deal with $250,000 with 25% equity. She offered $62,500 in cash and $62,500 as a credit line. However, Marc and Cheng counter-offered $350,000 with 25% equity in the same division. Barbara was ready, so she offered $100k in cash and $250k in credit line. The deal was done.
Hello everyone, I’m Sara Javed. I’m an IT professional expert with project management and design skills. Besides writing, I love playing video games, designing digital art, and reading books. I love Shark Tank due to its innovative business idea and unpredicted reactions of Sharks. This keeps me glued to the screens to watch the next catchy moment. Read more About me.