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When we think of Christmas, we think of many things. Eggnog, presents, gingerbread houses, and of course, ugly Christmas sweaters. It has become almost a custom to flaunt your ugliest sweaters, riddled with insufferable puns and questionable designs, on the wholesome holiday. When a company specializing in these sweaters found its way toShark Tank,you know just how much the population is in need of a good ugly Christmas sweater!
Shark Tankhas given many companies just what they needed to make it big in the industry and Tipsy Elves is one of them. Founders Evan Mendelsohn and Nick Morton walked into the Sharks’ tank and asked for a $100K for 5% of their company’s equity. While they did get themselves a deal, it didn’t happen before the pitch turned ugly.
How ‘Tipsy Elves’ almost caused a rift between Mark Cuban and Kevil O’Leary
Before putting on an adorable fashion show showing off their unique Christmas sweaters, Nick Morton and Evan Mendelsohn asked the panel for a whopping $100,000 worth of investment for just 5% of their company.
“Looks like I owe you one”: Only Reason Mark Cuban Invested $200,000 in a Shark Tank Pitch Was Because His Range Rover Drove Though The Owner’s Legs
They then distributed sweaters to the Sharks, promptingKevin O’Learyto comment,“This stuff is hideous.”Well, that’s kinda the point, no? However, O’Leary didn’t stop his harsh feedback there.
He went on to state that while the sweaters were ugly, so was the valuation. In his own words,
We know the sweaters are ugly but also the valuationis ugly. Why don’t you try and defend why this is worth $2 million…I’m looking at it saying you have to give a discount for the fact that there’s risk in the seasonality.
He was then interrupted byMark Cubanwho openly called him“the worst at valuations”and challenged his point of view.
Cuban stated,
You know what, don’t ever listen to Kevin on that stuff he’s the worst at valuations. Your problem is not valuation…Yeah, because some of us know how to grow past valuation.
Despite his rebuttal of O’Leary’s statement, Cuban didn’t offer a deal to Tipsy Elves. Neither didLori GreinerorDaymond John. The only two deals on the table for the company to take were from O’Leary andRobert Herjavecand they ended up going for the latter, settling for $100,000 for 10% of their company.
Where is Tipsy Elves now?
Tipsy Elves showed up on the twelfth episode ofShark Tankseason 5 which aired all the way back in 2013. The question is, what’s going on with the brand today? Did they reach new heights or did Herjavec’s investment not bear any fruits at all?
The company went on to sell novelty clothes for all occasions and by 2019, they had done over a hundred million dollars in retail sales (viaTV Insider). As of 2023, Tipsy Elves had done a total of $317 million in lifetime sales as perInvestopedia, making it the 8thbest-selling product onShark Tank.
Shark Tank’s First-Ever Deal Was a Masterstroke From a Contestant Who Bluffed The Sharks For TV Exposure
In an interview withThe Motley Fool, Herjavec opened up about his number one all-time favorite investment on the show, and, to no one’s surprise, it was Tipsy Elves.
He stated,
I would say, to Daniel’s point, I love them all, but I would say Tipsy Elves, from a Shark Tank perspective. It was probably the first large investment I made in an area I didn’t really understand.
Well, the investment surely paid off! In return, the founders also had nothing but positive words for Herjavec. Morton called him“an awesome human being and a very shrewd businessman”and credited him for giving them the confidence they needed to expand their inventory (viaMedium). Once again, a Shark proved that in order to make it big, you’ve gotta take risks!
Shark Tankis available to watch on Disney+.
Mishkaat Khan
Senior Writer
Articles Published :2256
A connoisseur of all things horror, fantasy, and the occasional chick flick, Mishkaat has been penning pieces for FandomWire since 2022. She started off as an intern and has worked her way up to a Senior Writer with over 2000 articles to her name.Outside of entertainment, she has also written well-researched medical content as a freelance writer and has experience in social media management.When not writing, you’re able to find her relaxing with a romance novel and a tall glass of iced coffee in her hand or watching re-runs of ‘Supernatural’ and ‘The Office.’
