Grace and Lace:

Custom Knit Boot Socks & Leg Warmers

Season 5 | Episode 510 | EP510


                                 

Grace and Lace: Custom Knit Boot Socks & Leg Warmers

Grace and Lace: The Pitch

In Season 5, Episode 10 of Shark Tank, Rick & Melissa Hinnant approached the Sharks seeking an investment of $175,000 in exchange for 10% equity in ‘Grace and Lace’. The company is currently based in Austin, Texas.

Grace and Lace is a company which specializes in the production of leg warmers and boot socks. The products created by Grace and Lace are designed to be as stylish as possible. This is something which very few leg warmers on the market actually do. The result is the fact that Grace and Lace have a very large market almost to themselves.

The duo announced that the company had achieved sales of $800,000 in 2012. This generated a profit of $300,000. They stated that in 2013 they managed to generate $1.1 million in sales. Most of their money, 90% of it in fact, was generated online.

The profit margins on the product are incredibly high. The boot leggings cost just $5.00 to make and can be sold for $34.00. At the time of the pitch marketing costs were incredibly low. Most of the sales that Grace and Lace generated were achieved through social media.

The Sharks were intrigued as to why Grace and Lace were seeking investment as cash was flowing freely through the business. The pair stated that they were after a strategic partnership as opposed to the cash. They believed that the right investment would allow them to take Grace and Lace to the next level.

Offers Received:

Barbara Corcoran: $87,500 in exchange for 5% equity in the company. She would require another Shark to match her offer in order to encourage her to invest.

Kevin O’Leary: $175,000 in exchange for 20% equity in the company. This would be reduced to 10% once he received his initial investment back.

Robert Herjavec: $175,000 in exchange for 10% equity in the company. This was the exact offer that the pair was hoping for. Robert required that the duo make their decision immediately. They hesitated and Robert withdrew his offer.

Secondary Offers Received:

Barbara Corcoran: $175,000 in exchange for 10% equity in the company.

Grace and Lace: Result

The pair accepted Barbara Corcoran’s offer of $175,000 in exchange for 10% equity. Grace and Lace therefore received the funding that they needed to expand their company.

Grace and Lace: Investors


Barbara Corcoran Bio Photo

Barbara Corcoran

Barbara Corcoran is a compassionate investor that likes to give capable entrepreneurs a chance. If you want to land an investment with Barbara avoid collegiate name dropping, technical jargon and business plans that only look good on paper.

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