Parents buy many toys for their kids, but children often get bored with them quickly and demand new ones. This leads to parents spending more money on new toys. To reduce spending and meet children’s demands, Nikki Pope started a company called Toygaroo, which provides rental toys on a subscription basis.
Nikki wanted to expand her business, so she came to Shark Tank for funding. Did the Sharks invest in her business? Let’s find out what happened to her business.
| Company Name | Toygaroo | |
| Founder/Co-Founder | Nikki Pope | |
| Founded | 2009 | |
| Product | Rental Toys | |
| Asked For | $100k for 10% equity | |
| Final Deal | $200k for 40% equity | |
| Shark | Mark Cuban & Kevin O’Leary | |
| Episode | S2 E2 | |
| Air Date | March 25th, 2011 | |
| Business Status | Out of Business | |
| Website | Visit Website | |
| Headquarters | Los Angeles, California, United States | |
| Lifetime Sales | $1M *estimated | |
| Buy and Watch | Buy Now | Amazon Prime |
Business Pitch Episode Recap
Nikki markets her business with the tagline “Netflix of Toys.” On Shark Tank, she explained her business model to the Sharks and shared her expansion plans.
She asked the Sharks for $100k in exchange for 10% equity in her company, valuing it at $1 million.
She explained that returned toys go to a third-party company that cleans and properly packages them, making them ready for rent again. Customers purchase monthly memberships, which cost between $35 and $89, a significant amount.
Initially, over 500 customers subscribed to the service and liked it so much that word of mouth brought in an additional 1,000 customers. For every million in sales, Nikki needs to purchase $64,000 worth of toys, which she recovers within one year.
Nikki holds a 10% stake in her company, while her husband holds 50%, and the remaining percentage is with a web designer and two marketing guys. The surprising thing is that Nikki is leading the business.
Daymond John was not happy with this arrangement and said, “He is out.”
Kevin O’Leary offered $100k but wanted 35% ownership of the company. Barbara Corcoran said it wasn’t her space, so she was out. Robert Herjavec and Mark Cuban teamed up and offered $200k for 40% equity.
Nikki was interested in Kevin’s offer and asked him to match Robert and Mark’s offer. Kevin convinced Mark Cuban to join him, and they offered $200k for 40% equity. Finally, the deal was completed.
Sharks Offers list!
| Sharks | Offers |
|---|---|
| Mark Cuban | $100k for 20% equity (Robert) #1 $100k for 20% equity (Kevin) #2 |
| Kevin O’Leary | $100k for 35% equity #1 $100k for 20% equity (Mark) #2 |
| Robert Herjavec | $100k for 20% equity (Mark) #1 |
| Barbara Corcoran | No Offer |
| Daymond John | No Offer |
| Founder’s (Countered) | No Counter |
| Final Deals | $200k for 40% equity (Mark & Kevin) |
Toygaroo Shark Tank Update
Nikki was very happy to have received investment for Toygaroo on Shark Tank, and the Sharks showed considerable interest in the early stages of the business. However, due to poor management and multiple partners, the company eventually went bankrupt.
During research on Toygaroo, it was found that Nikki made significant efforts to sustain the business. However, differing visions among all partners led to challenges, resulting in the business not being able to sustain itself in the long run.
Check out Shark Tank Season 2 Business Update.
If you want more updates on the businesses that appeared in Season 2, visit here.
