- On a recent episode of Shark Tank, it was revealed that Robert Herjavec invested in a razor company called Supply
On the hit ABC show Shark Tank, a fighter-jet salesman named Patrick Coddou pitched a company that manufactures razor with aerospace-grade engineering. Patrick’s wife Jennifer Coddou is also a co-founder of Supply.
“I spent about a decade climbing the corporate ladder. I had a six-figure job. I literally sold stealth-fighter jets for a living,” said Patrick to the Shark Tank investors on a recent episode via CNBC. “On the outside, it looked like I had everything, but I hated waking up in the morning. I hated going to work. I went in and out of depression. It affected our marriage, and I became a person that I didn’t recognize anymore. I saw my life 30 years in the future, and I saw myself still doing the same thing. So I finally decided to do something about it.”
The patented Supply razors are American-made and it makes shaving more comfortable. And Patrick pointed out that the Supply razor prevents ingrown hairs and irritation.
Making this deal was crucial for the Coddous since they put their life savings into the company. And they both quit their jobs to focus on the company.
When they walked into the “Shark Tank,” they asked for a $300,000 investment for a 10% stake in the company, giving it a valuation of $3 million.
“I don’t spend money on almost anything, but I splurge on my shaving, and I never found a single-shaving razor that does the job,” explained KIND founder and executive chairman Daniel Lubetzky — who was a guest “Shark” during the episode.
A Supply single-blade razor kit costs $125. And the Coddous said that it costs $28 per kit to manufacture. They are aiming to get the cost lower than $10.
During the episode, Lori Greiner pointed out that it was “like the Cadillac of razors.” Greiner and Lubetzky did not feel like they were a good fit for the product so they opted out of making an investment. Mark Cuban also opted out.
Robert Herjavec and Kevin O’Leary got into a heated argument about whose deal was better. O’Leary offered $300,000 for a 5% stake along with a perpetual $1.50 royalty on each unit sold going forward. Herjavec criticized that deal by saying that royalties “suck cash out of the company.”
So Herjavec offered $300,000 for a 15% stake without royalties. That is when the Supply co-founders accepted an offer. Here is a video clip from the episode:
