The Pop
The Pop is a company from Montclair, NJ, started by a mother that wants to solve the problem of young children dropping their pacifiers and the germs that come with it.
The entrepreneur of The Pop invented a patented self hiding pacifier that will protect the nipple when it falls out of a child's mouth, protecting that part that goes in their mouths from touching the ground and picking up whatever germs might be there. The pacifier comes in four or five different colors and is aimed at babies between new borns and six months old. In the next year, the company has plans to launch a new version intended for children between six and twelve months old.
The Pop has been selling officially for four months and has sold more than 25,000 units and grossed $117,000 in sales. Each pacifier retails for a very reasonable $9.99, costs $1.20 per unit to produce and wholesales for $5. It is currently being sold in both Nordstrom and Bye Bye Baby.
In terms of prior fundraising, the entrepreneur stated that The Pop had had a successful Kickstarter campaign in the year or two before. Additionally, she described raising some money from friends and family on a convertible note valued at $2,500,000 but did not state how much money was raised or what the discount was.
This deal aired on Episode 9.19.
Making A Deal
The entrepreneur stated that she was looking for a shark's investment because she wanted their expertise and advice for the future. What she got was Mr. Wonderful and perhaps one of his least shark-y deals.
Instead of the 5% equity on offer, he wanted 10% but with no royalty or other conditions. While this bit the value of the company in half, it was almost exactly what the entrepreneur was looking for and she accepted, bringing Kevin O'Leary on as a partner.