Tippi Toes Shark Tank Update (Season 2)

Highlights

Megal and Sarah appeared on Shark Tank seeking $30k for 5% equity, and they finalized a deal with Mark Cuban for $100k in exchange for 30% equity.

The company generates an estimated annual revenue of $2.5 million and is currently valued at approximately $30 million.

Megal Reilly and Sarah Nuse started a children’s dance company called Tippi Toes to encourage physical activity, healthy habits, and fun for kids. Megal is a registered dietitian, and Sarah is a former professional dancer.

These sisters came to Shark Tank to grow their franchise business. Let’s find out if the Sharks invested in their business and what happened to it afterward.

Company NameTippi Toes
Founder/Co-FounderMegal Reilly and Sarah Nuse
Founded2006
ProductChildren’s Physical Activity and Dance Classes
Asked For$30k for 5% equity
Final Deal$100k for 30% equity
SharkMark Cuban
EpisodeS2 E2
Air DateMarch 20th, 2011
Business StatusIn Business
WebsiteVisit Website
HeadquartersTulsa, Oklahoma, United States
Lifetime Sales$28M *estimated
Buy and WatchBuy NowAmazon Prime

Business Pitch Episode Recap

Megal and Sarah, along with some children, demonstrated their dance class and physical activity business to the Sharks. Sarah asked the Sharks for $30,000 in exchange for 5% equity in their company, valuing the company at $600,000.

Megal explained that they started franchising their business in 2009 and have sold a total of seven franchises, each costing $30,000. This cost includes dance CDs and other support materials.

Last year, their company generated a total revenue of $268,000, but the profit was only $29,000, which is quite low. A positive aspect is that they finance the franchises, earning interest, and they also collect a monthly royalty of $1,000.

Daymond John said he wasn’t the right partner for this business, so he was out. Robert Herjavec also declined to invest. Kevin O’Leary offered $50k but wanted 51% ownership of the company.

Barbara Corcoran offered $60k for 20% equity, but Megal & Sarah countered Mark Cuban with an offer of $100k for 30% equity, and they closed the deal with Mark.

Sharks Offers list!

SharksOffers
Mark CubanNo Offer
Kevin O’Leary$50k for 51% equity
Robert HerjavecNo Offer
Barbara Corcoran$60k for 20% equity
Daymond JohnNo Offer
Founder’s (Countered)$100k for 30% equity (Mark Cuban)
Final Deals$100k for 30% equity

Tippi Toes Shark Tank Update

Mark Cuban and Megal & Sarah’s deal never materialized despite multiple negotiations over the deal amount and equity. However, appearing on Shark Tank helped Tippi Toes increase their franchises from 7 to 38.

As of June 2024, they are charging between $67,100 to $83,500 for one franchise. The company is generating an estimated revenue of $2.5 million annually.

Check out Shark Tank Season 2 Business Update.

Do you want more business updates from Season 2? Go here.

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Biswajit Nayak

Biswajit Nayak is the Founder and Owner of the Shark Tank Products Website. His journey with ABC's Shark Tank TV Show began in 2019, and since then, he has become an expert in predicting which deals will be secured and which ones will not. My Reddit Profile

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