A local student-led venture capital fund has joined the likes of Mark Cuban and Stefon Diggs with its recent backing of a fast-growing e-commerce startup that landed an appearance on ABC’s “Shark Tank” this spring.
RedHawk Ventures, a fund entirely run by undergraduate students at Miami University, participated in a $2 million seed round for Mad Rabbit Tattoo, a tattoo after-care company founded by Oliver Zak and Selom Agbitor, 2019 alums of the Oxford-based school. RedHawk's funding totaled $25,000, which is its maximum investment allowed.
Mad Rabbit, which reeled in Cuban during a “Shark Tank” appearance in March, produces natural solutions that help keep tattoos looking vibrant. Zak and Agbitor, who earned finance degrees at Miami, started the company as a side hustle in college, mixing batches of their first balm in Zak’s apartment.
RedHawk Ventures said its leadership performed “significant due diligence” prior to its investment. RedHawk’s deal flow team identified Zak and Agbitor as two high-potential alumni earlier this year.
“Our investment committee confidently believes Mad Rabbit will benefit from connecting with the Miami entrepreneurial ecosystem,” Abby Bartlett, RedHawk Venture’s co-managing director, said in a release. "As their company continues to grow, we look forward to their continued success.”
Mad Rabbit’s operations are based in Los Angeles, while its management team is currently working remote. Its product line, which is non-toxic and paraben-free, includes a balm ($15.99), a sunscreen ($24.99) and a gel ($19.99), the latter of which is tailored for new tattoos. The products are sold via its website and on Amazon.
The seed round, announced Tuesday, was led by New York City-based Acronym Venture Capital with participation from Cuban and Diggs, a wide receiver for the NFL’s Buffalo Bills. With the funding, Mad Rabbit will continue to expand and optimize its offerings, manufacturing operations and marketing efforts, the company said.
Mad Rabbit reported more than $2.8 million in revenue in 2020. The company is on track to hit eight figures this year.
“We look forward to reaching a larger, more inclusive community of tattooed consumers with our products,” Zak said in a release. “Our vision for the brand is that it will someday extend far beyond skincare.”
RedHawk Ventures, established in 1997 with financial support from Procter & Gamble (NYSE:PG), is one of the few funds of its kind in the country. Some of its other portfolio companies include Flutter Social, a virtual event planning business; Portland-based Oros, an outdoor apparel company that utilizes technology developed by NASA; and the Game Haus, which provides recaps, interviews, predictions and analyses for professional sports, gaming and esports.
RedHawk Ventures celebrated its first exit in October when Chicago-based Digs was acquired by Austin’s OJO Labs for an undisclosed sum.
