Here's What Went Down With Mad Rabbit Tattoo Balm After Shark Tank
It was in college when friends Selom Agbitor and Oliver Zak started their first e-commerce business together. They began by selling swimsuits, and, after learning all the ins and outs of the business world, Zak told Forbes they sold the company for $7,000. But bigger things were definitely on the horizon. In 2019, they founded Mad Rabbit. The company began selling aftercare products for tattoos after Zak found himself looking for products that didn't exist. "Most of them involved petroleum jelly, which I felt was outdated and unhealthy. I asked my tattoo artist if there were any natural alternatives, and there weren't. That's when Selom and I decided to create our own natural tattoo care products," he said. They utilized the online world to promote their products. "We started running ads before we even had any actual physical product, because I wanted to make sure that there was a product-market fit before we spent time cooking tattoo balm in Oliver's apartment," Agbitor told Shopify, revealing they started to get orders within a week.
They teamed up with Drew Fallon on the business, with Fallon telling PracticalEcommerce that they worked other jobs for two years after graduating, with Mad Rabbit as a side project. "During that time, we went from zero to $3 million in revenue with one product, one social site, and one advertising channel," he said. The trio then decided to go full-time with the business in 2021, the same year as their life-changing appearance on ABC's "Shark Tank."
Mad Rabbit seriously impressed the Sharks and landed a deal with Mark Cuban
Selom Agbitor and Oliver Zak appeared on "Shark Tank" with the hopes of getting Mark Cuban, Barbara Corcoran, Kevin O'Leary, Lori Greiner, and Daymond John to give Mad Rabbit a cash investment. The two were looking for $500,000 for 5% of the business. They explained how their all-natural products are created to keep tattoos from fading and looking their best, also letting the Sharks know that their product can be used by all skin tones and types.
The two shared that they'd sold $400,000 worth of products and hit $3 million in sales in 2020. The Sharks were so impressed with those numbers that Cuban even bowed down to the entrepreneurs. O'Leary was the first to make an offer, though. He told them he wanted to give them the $500,000 as a loan at 9.5%, plus he wanted 5% in equity. "I have a lot of respect for you dudes. You're not even full-time yet, and you're killing it," he said. Corcoran was next, sharing she was impressed but just didn't think she could help with the business, a sentiment John agreed with. Despite their praise for the entrepreneurs and their business, both dropped out. Cuban was next, offering the full amount for 12% of the business. But after Cuban made it very clear he wouldn't change his offer and wasn't willing to team up with Greiner either, the twosome agreed to go into business with him.
Mad Rabbit sales boomed after the company appeared on Shark Tank
Mad Rabbit's impressive deal with Mark Cuban went through, with Drew Fallon telling PracticalCommerce in 2022, "He's now our largest investor, having participated in subsequent financing rounds." And the entrepreneurs were thrilled to have Cuban onboard. "We were very pleased with the outcome of the pitch. We went in knowing which shark we wanted to ink a deal with, and we luckily got him. We also made a mental note of the amount of equity we would not give up, and luckily Mark Cuban did not go over that number," Selom Agbitor explained during an interview with Medium.
And the company only continued to grow massively after appearing on the ABC show. "We launched our soothing gel in January 2021. It sold well. Then we created a sunscreen in March, which went berserk. We sold 10,000 units in a week," Fallon said. In fact, Mad Rabbit saw so much quick success after "Shark Tank" that Selom Agbitor and Oliver Zak returned to the show in October 2022 to share an update on their business, sharing just how big the company had become.
Mad Rabbit has been so successful Mark Cuban invested in it twice
With such impressive numbers, it's probably no surprise that Mad Rabbit is still going strong as of December 2023. In fact, the company has been such a success that Mark Cuban invested in the company again. In March 2023, Mad Rabbit received $10 million in another round of funding, which included more cash from Cuban, who's invested in several businesses from "Shark Tank", including Youthforia. "I am thrilled to once again invest in Mad Rabbit and support its continued growth since its appearance on Shark Tank," Cuban told Personal Care Insights. "The brand found a need that didn't have a sophisticated solution. I admire that foresight and ingenuity and am excited about the company's future." Cuban's second round of investment came amid some very impressive growth from the company, as it expanded 138% year-on-year since appearing on "Shark Tank." That put Mad Rabbit's net worth and a very impressive $56 million.
The brand now offers a wide array of different products for tattoos beyond what Selom Agbitor and Oliver Zak showed off on "Shark Tank." Amongst the products currently on offer? Numbing creams, tattoo balm, and lotions are all available via the company's website.
Mad Rabbit has big plans after its latest investment
Even with the success Mad Rabbit has already seen, it seems the company is only getting bigger. In addition to its products, Mad Rabbit has started an ever-expanding ambassador program of 6,000 tattoo artists, which brings in a whopping $500,000 in affiliate sales every year. And it sounds like the Mad Rabbit entrepreneurs will continue to bring in more ambassadors. "Tattoo artists [are] the professional[s] who [are] putting needles in your skin for hours. You're really going to trust their recommendation, so that's just about the strongest influencer that I could ask for," Oliver Zak told WWD. It looks like Mad Rabbit's availability will only increase, too. As of October 2023, Mad Rabbit is available to purchase in 2,000 Walmart stores across the US, as well as being sold via the likes of GNC and Urban Outfitters.
Zak told Forbes in October 2023 that the company's latest round of funding would go towards building the brand's sales team, as well as ramping up its content production channels. "We're [also] focusing on additional product development," he revealed. "Most of our products today are consumer-facing, but we're working on innovations that will give the artist a better tattoo experience. This will go a long way in winning over their recommendation for aftercare and daily maintenance." So it looks like Mad Rabbit won't be going anywhere anytime soon!