The card engineering duo entered the Shark Tank seeking an investment of $300,000 for a 10% interest in their company. They began their pitch by explaining just how dedicated they were to their business. Both Wombi and John culminated their careers by graduating from the world renowned institution, Harvard Business School. They knew they could easily get high paying jobs in marine engineering, but even with a mountain of student loans, they chose to invest all of their money in Lovepop. For them, they knew had something special, and more than that, they loved knowing that they were creating a company that helped people make meaningful connections.
Wombi’s explanation of their business, to the Sharks, continued with a story that is all too familiar for the average person. You got to the store searching for the perfect card for a loved one. You hunt and you hunt, searching for the card that really gets across just how much you care about that person, but after spending way more time than expected on your quest, you are forced to settle on a card that is just “okay.”
Well now, according to Lovepop, you never need to settle again. For the Lovepop team, today’s cards and digital greetings have become too impersonal. Conversely, Lovepop cards create a unique, emotional, and tangible connection between two people. With that promise, the sharks were intrigued with the entrepreneurs’ conviction, but they were also anxious to get their hands on the cards and see just how breathtaking these cards could be.
Lovepop was happy to answer the call, and presented the sharks with special edition cards that demonstrated the versatility of their three dimensional designs. With impressive compositions like a 3D racecar for Robert Herjavec, or a three dimensional landscape for Barbra Cochran, the Sharks were willing to believe that the product was desirable, but things took a turn when the Lovepop team explained their equally unique business model.
To acquire customers, Lovepop had sidestepped the direct to consumer website model, and instead had chosen to utilize mall kiosks. The idea was to have costumers, that frequented malls, come to their Lovepop Kiosks. There, the customer will make their selection, get a hands-on with the product. Later, the customer would need to go the Lovepop website where additional services are offered; like having Lovepop employees hand write your message and send the card directly to the recipient.
Barbra Cochran, a Shark known for investing in companies that are in the early stages of development, wasn’t pleased with the kiosk idea. For her, she could tell that the business had two smart guys at the helm that clearly know how to make money. That said, the kiosk idea was scary. For a company so young, splitting the business into online sales and kiosk locations was a sign that the team wanted to do too much, too fast. She was out.
In a surprising character reversal, Kevin O’Leary, known for often telling struggling businesses that they won’t succeed, was captivated by the company. With several other romance related investments, he immediately knew Lovepop would fit quite nicely in his portfolio. O’Leary, the self-proclaimed Mr. Wonderful, created the “Something Wonderful” platform to aggregate businesses like Honeyfund for planning your honeymoon, Wicked Good Cupcakes for delighting the taste buds of wedding guests, and even Bottle Breacher as clever groomsmen gifts.
According to Mr. Wonderful, what’s exciting about the wedding business is that it is a time in people’s lives where they don’t care what they spend as long as it’s beautiful. That said, the other side of the coin is that it is also a time in people’s lives where they demand a large quantity of product at non-negotiable dates. With that in mind, O’Leary’s next question was about production. So, he asked them what they would do if he sent them 3,000 orders a month, fearing that they may not be able to handle a surprise demand. Fortunately, the Harvard super team had considered the production dilemma. To prepare, they already established an overseas production facility, and that facility currently has the ability to produce over 20,000 cards per month! With that level of production, Lovepop was able to reach an impressive $300,000 in total sales.
Wombi and John were thrilled to have two offers, but were also confident in the value of their business. So they countered back with their original offer $300,000 for 10%. Robert quickly re-countered and offered to meet them in the middle with $300,000 for 15%, an offer that Kevin O’Leary quickly matched.
The entrepreneurs quickly talked amongst themselves, and then came to the same conclusion, the wedding connection was too much of an opportunity to pass up. So, they gave a big yes to Kevin O’Leary!
Lovepop Now in 2018 – Recent Update
In uplifting new, even with all of Lovepop’s success, they have still found a way to give back to the community. Recently, Lovepop entered into a deal with an organization called The Possible Project. At The Possible Project, high school students learn how to start and run their own businesses through multi-year after school programs.