Boston startup Unshrinkit spent three feverish months preparing for its appearance on ABC's Shark Tank, and that hard work has now paid off.
On Friday night's episode, the startup accepted an offer from Shark Tank investor and Dallas Mavericks owner Mark Cuban to receive $150,000 for a 15 percent stake in the company. That investment, once closed, would give the startup a $1 million valuation.
Cuban made the deal after Unshrinkit was turned down by investor Lori Greiner and received less favorable offers from Kevin O'Leary and Daymond John. The skepticism faced by the Harvard-born startup was the perceived limitations of the market for the startup's product: a bottled formula that brings shrunken sweaters back to their normal size.
"Guys, obviously I'm not a clothes guy, but you're smart, you know what you're doing, and you've obviously thought this through."
Despite Greiner's rejection, the Shark Tank investors seemed to be impressed with Unshrinkit's solution that the startup said was only previously available through DIY videos on YouTube. So far, the startup said, it had sold 5,000 units for $35,000 in sales, and it projected that it could reach $130,000 by year's end.
It was enough to get Cuban to make a deal.
"Guys, obviously I'm not a clothes guy, but you're smart, you know what you're doing, and you've obviously thought this through," he said right before making the offer, which was just under the 10 percent equity Unshrinkit was originally offering.
After just a few seconds, Unshrinkit founders Nate Barbera and Desiree Stolar accepted the offer.
"Oh my god, this is it? He gives us what we've asked for? Are you kidding me? This is fantastic!" Barbera said backstage. "We're here, we're done," Stolar added.
Unshrinkit was a MassChallenge finalist this year.
