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Oliver Zak and Selom Agbitor started Mad Rabbit Tattoo, a company that sells post-tattoo care products, as a side business while they were attending the University of Miami in 2019. Now that side business has helped the pair of entrepreneurs to secure a six-figure investment from billionaire “Shark Tank” star Mark Cuban.
“We started with $ 300 each [in January 2019]Zak said on Friday’s episode of “Shark Tank” on ABC, “and we were lucky to be profitable in week one.”
Zak and Agbitor made Mad Rabbit’s first balm (which hydrates tattooed skin to prevent discoloration) in a slow cooker in their college kitchen with ingredients purchased from Amazon.
“We’ve grown a lot” since then, Agbitor said on “Shark Tank”.
In their first year, Mad Rabbit sold products like body balms, gels and sunscreens for $ 400,000. In 2020, sales reached $ 3 million, they said.
This rapid growth in sales is why the co-founders told The Sharks that Mad Rabbit was worth a $ 500,000 investment for 5% equity (which would have given the company a valuation of $ 10 million).
Mad Rabbit products range in price, from $ 15.99 for the tattoo balm to $ 29.99 for the sunscreen or “soothing gel,” according to the company’s website. It also offers a subscription service, from $ 11.99 to $ 22.49, where customers can choose to receive a product every one to three months.
“Tattoos require constant care and maintenance to stay healthy,” Zak said. “With that in mind, Mad Rabbit has been formulated with all-natural ingredients to keep tattoos vibrant and prevent ink fading.”
At the time of filming, the duo had more than 5,000 followers, Agbitor said.
The growth of the business has impressed the Sharks, especially after Zak and Agbitor shared that they had achieved this success while working full time outside of Mad Rabbit. (Zak said he worked in consulting and Agbitor worked in finance.)
“I have a lot of respect for you guys,” Kevin O’Leary said on the show. “You’re not even full time yet, and you’re killing him.”
Mark Cuban was also intrigued by the duo.
“I like what you do,” Cuban said before offering them a $ 500,000 investment for a 12% stake in Mad Rabbit – an amount of equity he called “non-negotiable”. Zak and Agbitor agreed to the deal, which values their company at nearly $ 4.2 million.
“I know my parents are going to be really happy,” said Agbitor, who was born in Ghana but raised in Ohio. “I will be an inspiration to my friends in Ghana.”
Disclosure: CNBC owns the exclusive off-grid cable rights to “Shark Tank”.
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