Barbara Corcoran Praises ChompShop Entrepreneur On Shark Tank Season 16
Highlights
- ChompShop was presented in the fifth episode by product designers turned entrepreneurs Kausi Raman and Max Leichty.
- ChompShop is a cardboard cutter for kids, designed to prevent accidents.
- Kausi’s backstory impressed Barbara Corcoran, who joined the show in the fifth episode this season.
After four episodes, Barbara Corcoran appeared for the first time in the latest Shark Tank season on November 15. As seen in the previous seasons, Barbara has always rooted for entrepreneurs who demonstrate passion and hustle. The best example of this is the ChompShop pitch from the latest Shark Tank episode.
Brought to the judges by Kausi Raman and Max Leichty, two University of Pennsylvania alumni, ChompShop offers innovative toys for kids. While the other Sharks were captivated by the product’s design and working, Barbara was most impressed by Kausi’s unwavering determination for the business.
Below is a complete breakdown of the ChompShop Shark Tank pitch, which allowed Barbara to gain interesting insights into Kausi’s background. Along with it, read about the bidding war between Barbara Corcoran and other Sharks, which led ChompShop to bag a deal.
ChompShop Pitch: Shark Tank Season 16
Kausi Raman and Max Leichty, a Philadelphia-based entrepreneur duo, approached the investors with ChompShop. They explained that their product was a cardboard cutter for kids, which was offered through ‘ChompSaw.’ With this, children could bring out their creative side without cutting their fingers.
Kausi and Max started the ChompShop Shark Tank pitch by removing a pile of cardboard. They said that while kids could cut the cardboard into different shapes and bring out their artistic side, parents feared giving them sharp objects to do it. ChompSaw solved the problem through its kid-safe power tool.
Seeking $250K for 5% equity, the duo described that using it, kids could create multiple 3D models. They then presented the samples of the innovative kid product to the Shark investors. Through the ChompShop cardboard cutter, they could create a fish, a sword, and a castle.
Kausi and Max said that the product is ideal for children aged over eight. Younger ones could also use it, but under parental supervision. ChompShop offers a user manual for better explanation of its functionality. Plus, they wanted to start a monthly subscription for cardboard projects with focus on STEM concepts.
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Why Did Barbara Feel The ChompShop Entrepreneur Is ‘Rock Solid?’
Once Kausi and Max completed their presentation, the Shark investors started asking questions one after the other. Barbara Corcoran was particularly interested in learning about how the entrepreneurs caame up with the idea. Kausi replied that the two of them met during their masters program at the University of Pennsylvania.
The idea was hers, which she came up with during one of their classes in product design. Kausi’s goal was to teach kids design-thinking skills. While working for the same, both the entrepreneurs used cardboards quite a lot of time and reached the prototyping stage.
During the experience, Kausi realized that although kids love using cardboards, working with it is difficult for them. This is why she decided to come up with a tool that allows them to cut cardboards in a safe way while improving their artistic skills.
After some research and collaboration with Max, she came up with the ‘ChompShop’ cardboard cutter.
Hearing the backstory made Barbara feel that Kausi has an innovative mind and an in-built entrepreneurial skillset. Combining both of these made ChompShop become a reality. If provided the right guidance and investment, the business could make great strides in the toy industry.
This is why Barbara felt that Kausi, in particular, is ‘rock solid.’
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How Did The Other Sharks React To The ChompShop Pitch?
On receiving their samples, the Shark investors started preparing their unique designs. It seemed like they were reliving their childhood days as they showed off their designs in an excited manner. Impressed with the design and functionality of the ChompShop cardboard cutter, they raised their questions.
Kevin O’Leary wanted to know about the company’s sales. The entrepreneurs then revealed that they had started ChompShop in 2023 for pre-orders only. Through it, they had made about $2.1 million in sales. The journey began through a Kickstarter initiative, which allowed Kausi and Max to make $1.2 million.
The one thing that visibly troubled the Shark investors was that the ChompShop founders had made an additional $1 million but they had not made a single delivery yet. Till the time of their Shark Tank appearance, the entrepreneurs had managed to sell 10,000 units.
On hearing about the cost of making and selling the ChompShop cardboard cutter, Barbara felt the rates were expensive. While the entrepreneurs expressed their desire to go beyond D2C, Kevin thought the product’s margins were not good enough to let them get into the retail space.
Kausi then revealed that both of them had managed to raise $5000 from their relatives using a SAFE Agreement.
Final Deal For ChompShop On Shark Tank
Expressing her admiration for Kausi’s entrepreneurial spirit, Barbara offered $250K for 20% equity to the ChompShop founders. Apart from her, the entrepreneur duo received offers from three other Shark investors. Kevin proposed $250K for 20% equity citing issues related to production and lack of product reviews.
Mark Cuban, too, agreed that there were concerns regarding the production and pricing of ChompShop cardboard cutters. However, he was sure that Kausi and Max would figure it out due to their backgrounds in product design. Plus, he felt ChompSaw was the ‘hot product of Christmas.’
Mark’s offer was $250K for 15% equity. While the founders were deciding on which deal to take, Lori Greiner expressed her will to join Mark.
In the end, the ChompShop Shark Tank journey culminated with a deal as the founders accepted Mark and Lori’s offer of $250K at 15% equity.
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Conclusion
ChompShop by Kausi Raman and Max Leichty found success on Shark Tank owing to its innovative product design and functionality. While the other Shark investors were intrigued by its features, Barbara Corcoran was more impressed by Kausi’s entrepreneurial drive.
Describing her as ‘rock solid,’ Barbara proposed a deal. The final deal, though, was ultimately bagged by Mark and Lori.
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
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