Alison Costa and Amy Feldmen pitch Coverplay, their washable slipcover/liner for Play Yards, Porta cribs, Play pens and Cribs, in Shark Tank episode 104. Costa was the mother of twins. She loved the convenience of being able to put her babies in a play yard, but found it was difficult to keep clean and germ-free. In 2007, she came up with the idea of the Coverplay, and recruited her friend, Amy Feldman, to help her launch the company. Both women had previous experience in design, and Amy had previously designed diaper bags that were sold in high-end boutiques all over New York City. The pair teamed up to create a product that would appeal to young moms, and also to bigger-volume customers like hotels and day care centers.
The business took off, and soon they were facing a serious problem: They had a $500,000 order, but lacked the capital to fulfill it. They came to the Shark Tank seeking an investment that would launch their company's success.
Coverplay Shark Tank Recap
Costa and Feldman come into the Shark Tank with a bold offer. They're requesting a $350,000 investment in return for 15% of Coverplay. The numbers project a total value of their company that tops $2.3 million. The women come to the Shark Tank with some solid supports to back up their numbers. They own two patents on their products, have successful sales numbers, and have already contracted with some high-volume customers and distributors, including Target, and several hotel chains and cruise lines.
Although Kevin Harrington built his business upon infomercials, he's out almost immediately due to the short time parents will need the product, from 0-2 years. Barbara Corcoran is intrigued, and offers the full amount, but wants 40% of the company, and stipulates that the money can only be used for product development. Daymond John steps in, offering the full amount, and allowing for the money to go toward manufacturing. He further offers to finance all the future production, but with a 65% stake.
The women take a brief break to discuss the offers on the table. They come back and offer Barbara the 40%, plus a percentage of ownership in the patents on Coverplay. When the Sharks learn the patent is not part of the deal, the offers are quickly retracted. The women agree to package the patent as part of the offer. Robert Herjavec, Daymond John, and Kevin O'Leary offer the $350,000, plus Daymond's network of warehouses and distribution, in return for a 51% stake. Barbara's offer of $350,000 for 40% stands, with the condition. With two offers on the table, the women face a difficult decision. After a brief consultation, they accept Barbara's offer, which allows them to retain control of the company.
Coverplay Shark Tank Update
Today, the Coverplay product is in multiple retail stores, and has solid roots in the hospitality industry. The products are sold through a major distributor that sells to major hotel chains and cruise lines. The women's appearance on the show netted them interest from major retailer Babies R Us. Parents can purchase the Coverplay on Amazon and through the website as well.
The exposure was what they needed to launch the Coverplay concept into the big leagues. Barbara Corcoran's investment turned out to be a strong one, and Daymond John was left kicking himself for not trying harder to get a slice of the Coverplay pie.