Hand Out Gloves, a unique and innovative product, made its debut on the popular TV show Shark Tank, where entrepreneurs Jake Sullivan and Don Wildman sought an investment of $150,000 for 20% equity in their business. The company’s gloves and mittens featured strategically-placed waterproof zippers, providing users with unmatched dexterity and convenience during high-endurance outdoor activities. The Sharks were captivated by their story, leading to an exciting update for Hand Out Gloves.
Details In Short:
Name: Jake Sullivan
Name: Don Wildman
Business: Hand Out Gloves
Ask: $150,000 for 20% equity
Result: $300,000 line of credit for 25% equity
Shark: Barbara Corcoran
Investment deal: $300,000 line of credit for 25% equity with Barbara Corcoran
Don Wildman passed away in 2018 due to cancer.
Hand Out Gloves added a new line of work gloves and hunting gloves in 2019.
Hand Out Gloves sells gloves for snow, fish, and hunt.
As of 2021, Hand Out Gloves reported $1 million in annual sales revenue.
Shark Tank Deal and Beyond
Entering the Shark Tank, Jake Sullivan had already secured interest from potential investor Don Wildman, the founder of Bally’s Total Fitness, making the duo a formidable force. During the pitch, they revealed that Hand Out Gloves had already generated sales exceeding $100,000. The company also held patents pending for its unique waterproof zipper and elastic strap designs, setting it apart from competitors.
Barbara Corcoran was the first Shark to make an offer, proposing 12.5% equity for half the requested investment, contingent on another Shark joining the deal. Unfortunately, other Sharks were not enthusiastic about the opportunity, leading them to pass on the investment. Barbara, undeterred, revised her offer, extending a $300,000 line of credit for 25% equity. Don also contributed $300,000 as part of the deal. The Hand Out Gloves team left the Tank with a successful partnership with Barbara.
Update on Hand Out Gloves
While the Sharks seemed enthusiastic about the deal, an unfortunate turn of events prevented its finalization. It appeared that the agreement with Barbara Corcoran never materialized, and the company faced a heartbreaking loss when Don Wildman passed away in 2018 due to cancer. Despite these challenges, Hand Out Gloves soldiered on and continued to thrive.
In 2019, Hand Out Gloves made a significant announcement, introducing a new line of work gloves and hunting gloves. By 2021, the company expanded its product range to include hunting, work, and fishing gloves on their website. Though they hadn’t achieved a national rollout yet, Hand Out Gloves maintained strong sales through independent retail stores, smaller shops, and ski areas.
As of 2021, the company boasted an impressive $1 million in annual sales revenue, a testament to the enduring appeal of their high-quality gloves and mittens.
Review of Hand Out Gloves
Hand Out Gloves has proven to be a game-changer for outdoor enthusiasts seeking the perfect balance between warmth, waterproofing, and dexterity. Made from sturdy leather, each pair features a Hipora waterproof lining and a waterproof zipper for added comfort. The gloves are also breathable, making them ideal for prolonged wear during demanding activities.
The patented zipper technology remains the star attraction of Hand Out Gloves. Located on the upper side below the knuckles, the zipper allows users to access their fingers while keeping the gloves on. It slides effortlessly, making it a breeze to operate with gloved fingers or even teeth. The company’s plans to extend this “five-finger dexterity” feature to gloves for construction workers further demonstrates its commitment to innovation.
Pros and Cons
Pros:
- Innovative design: Hand Out Gloves offer a unique solution to a common problem faced by skiers, snowboarders, and other outdoor enthusiasts. The zipper feature allows users to quickly access their bare hands without having to remove the entire glove, which can be a significant time-saver.
- Convenience and functionality: The ability to expose the hands while still wearing the gloves can be beneficial for various activities, such as using smartphones, adjusting equipment, or performing delicate tasks without exposing the hands to cold weather.
- Market potential: Appearing on Shark Tank provides significant exposure and potential for increased sales and brand recognition. The show has a large viewership, and if the Hand Out Gloves pitch was successful, they would have gained valuable marketing and distribution opportunities.
- Investor backing: If Hand Out Gloves secured an investment from one or more of the “sharks,” it would bring not only financial resources but also valuable expertise and business connections to help the company grow and expand.
Cons:
- Market saturation: The winter glove market is highly competitive, with numerous established brands already offering a wide range of options. It may be challenging for Hand Out Gloves to differentiate themselves and convince consumers to switch from their existing choices.
- Limited appeal: The zipper feature might not be a compelling selling point for all consumers. Some individuals may prefer traditional gloves or have no need for the specific functionality offered by Hand Out Gloves.
- Production and quality concerns: Introducing a unique design like Hand Out Gloves may come with manufacturing challenges. Ensuring the zippers are durable, reliable, and don’t compromise the overall quality and insulation of the gloves would be crucial to maintain customer satisfaction.
- Overvaluation or unrealistic expectations: If the entrepreneurs on Shark Tank overvalue their company or have unrealistic expectations about sales and growth, it could hinder their ability to secure a deal or properly manage the business moving forward.
Conclusion
Hand Out Gloves cater to adventurers and outdoor enthusiasts who frequently face sub-zero temperatures, humid forest covers, and other challenging environments. The gloves’ thermal insulation and waterproof properties make them a reliable companion for hunters, anglers, snowboarders, and more.
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