Highlights
- Jenn Deese and Kelley Coughlan pitched PurseCase on Shark Tank, seeking $55,000 for 12% equity.
- PurseCase combines a cell phone case with storage for essentials like credit cards and cash.
- Lori Greiner invested $55,000 for 15% equity, leveraging her QVC platform to boost sales.
Overview
| Category | Details |
|---|---|
| Name | PurseCase |
| Founders | Jenn Deese, Kelley Coughlan |
| Industry | Fashion, Technology Accessories |
| Product | Smartphone case with storage for credit cards, cash, and small items |
| Funding | Secured $55,000 investment from Lori Greiner for 15% equity |
| Investment Ask | $55,000 |
| Equity Offered | 12% |
| Valuation | $458,333 |
Jenn Deese and Kelley Coughlan bring their successful Kickstarter product called PurseCase to the Shark Tank in episode 511 on November 22. The two women are co-founders of Melrose PR, an LA boutique Public Relations firm in the health, beauty, travel, hospitality, fashion, and consumer product industries. They invented PurseCase to allow cell phones to be accessible and provide storage for essentials like credit cards, cash, and other small items while on the go.
The PurseCase gals ran a Kickstarter campaign in February and March of 2013 and raised $35,114 of their $35,000 goal. They used the campaign as a pre-order mechanism and used the money they raised for their first production run. They sell on their website and come in a variety of bright colors. There’s a PurseCase for the iPhone and the Samsung Galaxy, with plans for more in the works.
The young women are likely looking to the Sharks for cash to fund another production run. They hope the Sharks want to be “stylin’ and dialin.'”
PurseCase Shark Tank Recap
Jen and Kelley come to the Shark Tank seeking a $55,000 investment in return for 12% of the company. They present the Sharks with the scenario of going out on the town and needing a convenient, compact smartphone case that has room for credit cards, cash, and other essentials.
Robert Herjavec says that the European market is flooded with the same idea, but lacking the pocket for cash and credit cards. He raises the question of uniqueness of the product. Kevin O’Leary wants to know about the proprietary nature of the Pursecase. The entrepreneurs are currently making cases to fit iPhone 4s and 5s, and have sought utility patents on the design’s chain handle and pocket.
In the first three months, they’ve sold $30,000 in pre orders, which impresses the Sharks. They’re projecting $240,000 in the first year. Margins are 88% with direct sales, and 71% in retail outlets. They’ve done a deal for 15% of the company with a logistics company, that has given them a $100 million line of credit.
Lori Greiner drops a bomb, mentioning that she sells a very similar product already through QVC.
Robert Herjavec says he’s “just spent two weeks looking at this on every street corner [in Europe.]” He’s out. Barbara Corcoran wants a change pocket, and doesn’t like the flap. She’s out. Mark Cuban is “not a fan of the technology accessory business.” He goes out as well.
Kevin O’Leary likes the pair, and believes what they’re bringing to the table is unique, especially the deal they’ve done for the credit line. He makes them an offer. He’ll give them the $55,000, but wants $1 a unit until the investment is repaid, and $.75 a unit after that.
Lori Greiner isn’t done yet, in spite of the similarity to the other product. She makes a second offer. $55,000 for 15%. The girls accept immediately.
Pursecase Shark Tank Update
The partnership with Lori Greiner was exactly what the girls wanted, and it paid off quickly. Not only did Greiner make sales through her QVC platform, the product got picked up by major technology accessories retailer, Staples, launching it into the international market. Pursecase is well on its way to becoming a household product. This is one investment that has Greiner smiling all the way to the bank.
The business grew, and growth pressures caused Jenn to step away from the company; Lori and Kelley bought out her shares. The company got a featured segment in Beyond the Tank episode 204. Read about where the business is now HERE.
In June, 2021, this message appeared on the company Facebook page:
We’ll be back in 2022 after undergoing reorganization!
We’ll keep an eye on this business which had $5 million in annual revenue before shutting down. As of January, 2022, the message still appears on its Facebook page, but the website has gone dark. In May, 2022, the website is back up, but there is no content on the page. In August, 2022, the website is down again. In January, 2023, the site is still down and Kelley no longer lists Pursecase on her LinkedIn profile. Safe to say, they’re out of business.
Posts About PurseCase on Shark Tank Blog
PurseCase Information
The problem is they are only available for IPhone, I have a Samsung Note 4 and would love to have this product but there is no way to have one since you poorly chose to only market for apple products
Poor choice. Lol. It’s a more stable phone accessories market sense samsung change shape and phone every 5-7 months. And there are so many types of androids. The iPhone phone market is the only stable one it was a good decision
Will you be making a case for the Samsung Galaxy S 4 in the future? LOVE YOUR PRODUCT!!!
I Ordered this product, but never receive it
I’ve CRAZY LOVED mine for about 3 years now and have receive numerous compliments. I found the fancy chain I chose a bit cumbersome, and use the handy dandy handle exclusively. I thought it was pricey at the time, but would pay now double. Shhh,