Kobee’s Co. Founder Brings Natural Lip Balms On Shark Tank Season 16.
Highlights
- Kobe Harris appears on Shark Tank Season 16, pitching for natural lip balms.
- The Sharks love his backstory and hustle but are apprehensive about its valuation.
- The entrepreneur received just one offer from a prominent investor.
Overview
| Category | Details |
| Name | Kobee’s Co. |
| Founder | Kobee Harris |
| Industry | Cosmetic |
| Product | Lip Balms |
| Funding | Self-funded |
| Investment Ask | $300K |
| Equity Offered | 6% |
| Valuation | $5 million |
An aspiring doctor turned entrepreneur Kobe Harris makes his way to the Shark investors in Shark Tank Season 16 Episode 3 with his line of natural skincare products. Kobee’s Co. offers 100% natural, handmade, and sustainable lip balms that not only lock moisture but also trust and transparency.
The lip balms are made of beeswax, which is extracted from ‘happy’ bees. Adding a humorous touch to the pitch, Kobe reveals that the products contain beeswax, sunflower seed oil, mango butter, and coconut oil.
Kobee’s Co. has also expanded its horizons and offers a lotion bar, lip scrub, cuticle butter, and even a hand salve.
Kobee’s Co.: What Happened On Shark Tank Season 16
Kobe enters Shark Tank Season 16, seeking $300K for 6% equity in his company. He offers samples of the lip balms to the judges, who love its packaging and smell. Kobe says the lip balms are available in 10 different flavors. Each of the products is small in size and can be pushed for usage.
He kept the size short and wide as there is no twist function, and the product could be compostable. Kevin O’Leary asks if the lip balms are available in retail. The entrepreneur says that right now, he sells online only through his Kobee’s Co. website and Amazon.
Kobe came up with the idea during college and prepared the product by sourcing fresh ingredients from Amazon. He started selling after three months of preparation, and sales per day went up to $15K. The Shark investors loved his story.
In 2021, Kobee’s Co. made $30K, followed by $200K and $864K in the next two years. Sales made to date this year are about $1.5 million. The judges are amazed to hear the figures. Kobe feels the sudden spike was due to his expertise as a Gen Z on Facebook Ads and TikTok video posting.
The return on ad spend is 2.5 to 3, which Kevin feels is a ‘little light.’ CAC is around $14-$15. Kobe makes $32 on average order. Kobee’s main skew was a six-pack or a six to nine pack. Lip balms make up 75% of the company’s sales, and the other personal care items add the other 25%.
Daymond John wants to know about the costs. The cost of making a lip balm is 26 cents, and it is sold for $5. Kobe projects he will end the year with $3.5-$4 million in sales. The company’s employees will be paid $7K—$8K.
Did Kobee’s Co. Get A Deal On Shark Tank Season 16?
Guest Shark Kendra Scott likes Kobe’s story and will buy and promote the product but chooses not to invest as it is not her ‘wheelhouse.’ Mark Cuban asks Kobe what he is looking for on Shark Tank. He replies, saying he wants guidance with getting into retail and selling the products the right way.
Kevin feels he can help him with it and offers $300K for 20% equity as he feels the company is not worth the $5 million valuation.
Lori Greiner is the next in line who feels the retail world is loaded with similar products. So, it might be ‘a great online business,’ but not an ideal pick for retail. Plus, the use of ‘bees’ in the brand name does not convince her to invest, so she declines to make an offer.
Mark believes in Kobe, but he thinks he cannot add any value to his business, so he exited the deal. Daymond relates to the founder’s story, but he, too, feels the business is not the correct investment for him. He wants to be in ‘the Kobe business’ but not in ‘this business.’ So, he steps out of the Kobees Shark Tank deal.
The only Shark left is Kevin, who proudly says, ‘All roads lead back to the big bee out here.’ But Kobe thinks accepting his offer would mean agreeing to a $1.5 million valuation. He is not convinced by this idea and refuses to take it, thereby walking out without a deal.
See what else is new! View other businesses featured in this episode.
