Luna Magic $250,000 Shark Tank Deal Update

Two sisters, one bold vision, and a beauty brand rooted in culture lit up the Shark Tank stage. When Mabel and Shaira Frías stepped onto the Shark Tank stage in Season 12, they weren’t just pitching another beauty brand. They were championing a vision for inclusivity and cultural celebration. Their journey with Luna Magic, from personal frustration to a nationally recognized brand, offers a masterclass in how authenticity and strategic partnerships can drive lasting success.

The Founding Story: Identity and Inspiration

Luna Magic was born out of the sisters’ own experiences as Afro-Latinas struggling to find makeup that truly complemented their skin tones. Raised in the Virgin Islands and New York by Dominican parents, Mabel and Shaira understood firsthand the gaps in the beauty industry for women like them. They launched Luna Magic in Los Angeles in 2019, determined to create products that honored their heritage.

Mabel Frías, Co-Founder and CEO, brought a strong background in retail, having worked with major brands like Macy’s and Savage x Fenty, as well as impressive academic credentials from NYU and Parsons School of Design. Shaira Frías, Co-Founder, added her expertise as a professional makeup artist and former journalist, with appearances on networks like NY1 and Fox News. The brand’s name, Luna Magic, is a heartfelt tribute to their late mother, whose memory continues to inspire their mission.

The Shark Tank Pitch: Momentum and Strategy

When Luna Magic appeared on Shark Tank Season 12, Episode 10, the sisters entered with impressive traction. They asked for $200,000 in exchange for 10% equity, valuing the company at $2 million. Their pitch highlighted several strengths:

• Financial Health: Despite only $16,000 in direct sales, the company had generated $103,000 in total revenue, thanks in part to a $57,000 partnership with a subscription box service. They also had zero debt and $157,000 in cash reserves.
• Retail Presence: Luna Magic was already in over 1,000 stores and had secured negotiations for prominent end-cap displays at Walmart.
• Industry Recognition: The brand had won a $30,000 Glossier Grant for Black innovators.

Barbara Corcoran, recognizing the brand’s potential, countered with an offer of $250,000 as a line of credit in exchange for 30% equity. The sisters accepted, valuing Corcoran’s expertise and her ability to help them scale.

The Deal: Pros, Cons, and Lessons

Advantages of the Partnership:

• Flexible Funding: The line of credit gave Luna Magic the capital needed for inventory and expansion without immediate pressure.
• Retail Expertise: Corcoran’s guidance was instrumental in securing placements at Walmart, Target, and CVS.
• Brand Visibility: The Shark Tank appearance significantly boosted awareness and customer interest.

Potential Concerns:

• Equity Dilution: The 30% stake was three times higher than the sisters’ initial ask, reducing their ownership share.
• Market Competition: The beauty industry is notoriously crowded and competitive.
• Cultural Authenticity: Balancing mainstream appeal with authentic cultural representation required careful navigation.

Barbara Corcoran’s direct feedback during the pitch, including calling their initial approach “messy,” provided valuable guidance that helped refine their business strategy.

Key Lessons for Entrepreneurs

Luna Magic’s journey offers several important takeaways:

• Solve Real Problems: The sisters addressed a genuine gap in the market, giving their brand authentic credibility.
• Leverage Cultural Identity: They made their heritage central to their brand story, differentiating themselves in a crowded industry.
• Build Traction Before Pitching: Entering Shark Tank with existing retail partnerships and revenue made them attractive to investors.
• Accept Strategic Guidance: They recognized the value of Corcoran’s expertise, even at the cost of greater equity dilution.
• Think Beyond Products: Luna Magic sells culture and identity, creating a deeper emotional connection with customers.

Expanding Beyond Shark Tank: Industry Recognition

Luna Magic’s success didn’t stop with Shark Tank. The brand has been featured as a panelist alongside industry leaders at Beautycon LA. They are also alumni of the Glossier Grant for Black-Owned Beauty Businesses, standing alongside brands like Range Beauty and Young King Hair Care. The sisters have participated in the Sistas in Sales Summit, connecting with other women of color in business.

Current Status and Future Outlook

Today, Luna Magic’s rise from personal challenge to national retail presence demonstrates the power of authentic storytelling. With annual revenue estimated at $1.7 million, the brand is now available at Walmart, Target, and CVS, and enjoys strong customer satisfaction. Their product line has expanded beyond makeup to include fragrances, hair accessories, and lifestyle items, all while staying true to their mission of celebrating Afro-Latina culture.

The Frías sisters have proven that staying true to one’s heritage while building a mainstream business isn’t just possible. It’s a powerful competitive advantage in today’s diverse marketplace. Luna Magic continues to inspire entrepreneurs from underrepresented communities to pursue their dreams, showing that authenticity and strategic vision can create a lasting impact.