In 2015, Nina Farzin needed a unique support: a product to help her clear her baby’s clogged nostrils.
She couldn’t find one. So she took $22,000 from her savings, quit her full-time job as a pharmacist, and founded Potomac, Maryland-based Oogiebear. On Friday on ABC’s “Shark Tank,” Farzin told investors how far she’d go: Since starting her booger-removal business, Oogiebear has made 15 million dollars in revenue. Farzin said she’s on track to make $1 million a year.
Now, she has two new business partners and a “Shark Tank” deal: In the episode, Barbara Corcoran and Robert Herjavec gave Farzin a total of $600,000 for 10% of Oogiebear. Investors promised to give up half of that equity if the company didn’t hit $400 million in revenue within two years.
Robert Herjavec tested Oogiebear’s product, which has a ring on one end and the other end is a scoop.
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Oogiebear is a hot commodity for the Sharks: Mark Cuban, Lori Greiner and Kevin O’Leary also want a stake in the company, which Farzin says is on track to make $5.4 million a year.
“I’ve actually developed a whole new infant care service [category]”Farzin said.” There is nothing like this on the market. As a pharmacist, I know better. There’s no mention of boogers, and that’s the most important because it’s associated with babies breathing better. “
O’Leary offered Farzin $400,000 for 10% of Oogiebear. Grenier matched the offer and invited Cuban, who said he wanted a 12% stake in the company, to join.
Then Corcoran jumped in, citing her previous success as an advantage in investing in baby care products. She says she can help diversify Oogiebear’s revenue: Farzin estimates that 76% of the company’s revenue comes from Amazon, despite its presence in retailers like Nordstrom and Walmart.
Initially, Corcoran made the same offer as O’Leary did, adding her promise to return half of the equity if the company failed to meet its sales standards. Herjavec later joined the deal, offering to split the $400,000 investment equally while saying he regretted having entered Corcoran’s previous infant care investments.
Cuban, Greiner, and O’Leary criticized the offer, especially as Cuban argued that he could help Oogiebear increase sales without any additional conditions. But Farzin remained focused on Corcoran and Herjavec, instead asking them to receive a total of $600,000.
Corcoran asked if Farzin would accept an additional $200,000 as a line of credit. “We had a million dollars in cash,” Farzin replied.
In the end, Corcoran and Herjavec accepted Farzin’s counter-offer. Farzin said she negotiated with the duo because she is a fan of Corcoran and feels confident in the duo’s ability to bring Oogiebear to more customers. Even before the deal’s execution, the company’s performance exceeded her expectations, she said.
“I’m a casual businessman, [but] I have the heart of an entrepreneur,” Farzin said. I want 50 other moms to really like this product. I never imagined I would be here. “
Disclosure: CNBC owns the out-of-network cable TV rights to “Shark Tank.”
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