Stringys Underwear Shark Tank Deal

Stringys was founded in March 2023 by best friends and business partners Olivia Karina and Elvira Troger. The idea was born out of their shared frustration with traditional underwear options that failed to eliminate visible panty lines or provide comfort under form-fitting outfits.

Recognizing this gap, Olivia and Elvira developed a truly invisible, adhesive panty that stays in place without straps, rolling, or digging in. Their dedication led them through over 60 prototypes before landing on the final product, which uses bonded materials for a seamless, weightless feel. The brand quickly gained traction, selling primarily direct-to-consumer and building a reputation for quality and comfort.

The Shark Tank Pitch: Ask, Valuation, and Offers

On Shark Tank Season 16, Olivia and Elvira pitched Stringys, seeking $300,000 for 5% equity—a $6 million valuation. They highlighted Stringys’ unique design, strong profit margins (costing $2 to make, retailing for $14), and $180,000 in sales over 11 months. Their ask was rooted in the need to scale production and avoid frequent sellouts, as demand was outpacing supply.

Negotiation & Final Deal

The pitch prompted interest and tough negotiations from the Sharks:

• Kevin O’Leary offered $300,000 for 3% equity and a $1 per unit royalty in perpetuity, later lowering the royalty to $0.50 per unit.

• Barbara Corcoran initially offered $300,000 for 10% equity, emphasizing her brand-building expertise.

• Daymond John and Mark Cuban opted out, citing valuation and fit concerns.

• Lori Greiner stepped aside, noting Kevin’s experience in the underwear industry.

Olivia and Elvira countered, explaining that a lower valuation would negatively impact their existing SAFE notes, which convert at a 30% discount. They negotiated with Barbara, ultimately securing a deal for $300,000 in exchange for 3% equity plus a $0.22 royalty per unit sold in perpetuity. This deal valued the company at $10 million—higher than their initial ask.

Pros and Concerns Raised

Pros:

• Innovative Product: Stringys offered a genuine solution to a widespread problem, with a design that was difficult to replicate and patent-pending protection.

• Strong Margins: Low production costs and high retail price ensured healthy profits.

• Market Validation: Early sales, positive customer reviews, and support from influencers and investors demonstrated demand.

• Mentorship: Partnering with Barbara Corcoran brought not just capital, but invaluable guidance in brand building and scaling.

Concerns:

• Valuation vs. Sales: Some Sharks felt the $6 million (and later $10 million) valuation was too high for a company with $180,000 in sales.

• Scaling Challenges: Questions arose about production capacity, supply chain, and the ability to meet growing demand.

• Patent Status: The product was patent-pending, not fully protected, raising concerns about potential competition.

• Royalty Structure: Kevin O’Leary’s insistence on a high royalty could have eaten into margins, but Barbara’s lower royalty was more palatable.

Lessons for Entrepreneurs

Stringys’ Shark Tank journey offers several takeaways for aspiring founders:

• Solve a Real Problem: Successful pitches start with a clear, relatable problem and a unique, effective solution.

• Know Your Numbers: Be prepared to justify your valuation with sales data, margins, and growth potential.

• Be Flexible in Negotiation: The founders’ willingness to negotiate on equity and royalty terms was crucial to closing the deal.

• Protect Your Business: Patent protection (or at least a significant barrier to entry) is vital when launching an innovative product.

• Leverage Strategic Partnerships: Beyond funding, the right investor can offer mentorship, connections, and brand-building expertise.

• Tell Your Story: A compelling founding story and authentic passion can set you apart and win investor support.

Future Outlook

The Stringys Shark Tank deal exemplifies how a compelling product, a clear vision, and strategic negotiation can propel a young brand into the spotlight. Olivia Karina and Elvira Troger’s journey from identifying a common pain point to securing a high-profile investment highlights the importance of resilience, preparation, and adaptability for entrepreneurs.

Their success story demonstrates that with the right mix of innovation, business acumen, and partnership, even early-stage startups can achieve rapid growth and industry recognition. For founders seeking to make their mark, Stringys provides a blueprint for transforming a simple idea into a scalable, sought-after brand.