A Minnesota couple’s dog clothing company received a $250,000 investment from investor Mark Cuban during an episode of ABC’s “Shark Tank” that aired on Sunday.
Cuban will have a 25 percent stake in Dog Threads, a Long Lake, Minn., company that was founded by Gina and Scott Davis. During the episode, Cuban said he could connect the company with merchandisers for the Dallas Mavericks. Cuban is a majority owner of the NBA team.
“I’m kind of on the fence, but I like what you’re doing,” he said as he made his offer.
The company has been selling dog clothing for about five years. It creates designs that mimic trends in human apparel. It also makes matching outfits for families, including various sizes for dogs, men, women, and kids.
Gina Davis told TCB that Dog Threads works with a handful of local contractors to produce a large amount of inventory in Minnesota. Some goods get produced in California and Ukraine, too.
Dog Threads is currently sold at about 50 retailers around the world, including ecommerce sites, small niche boutiques, and brick-and-mortar giants like Nordstrom and Von Maur.
The cofounders said 80 percent of sales are made directly online, according to CNBC. The company’s sales were $196,000 for 2018, and they projected $240,000 in sales for 2019, according to CNBC.
A portion of each sale goes toward nonprofit animal rescues, according to the company’s website.
The Davises set out looking for a $250,000 investment for a 17 percent stake from a Shark Tank investor, according to CNBC. Cuban wouldn’t allow the cofounders to hear an offer that investor Kevin O’Leary wanted to make, and Cuban wanted a 30 percent stake at first. The couple made a counteroffer: $250,000 and a 25 percent stake for Cuban.
“It’s really important to us that we maintain enough equity to make sure we are set for our family. We have a one-year-old at home, and you guys know the costs that come with babies,” Scott Davis told the five investors as Gina held their dog, Jonesy.
The couple’s baby, Ziggy, was on the set, and it was his first birthday. That helped convince Cuban to lower his stake to 25 percent. Cuban joked that they were “using the baby to shame me!”
Scott Davis told viewers that the extra 5 percent will go toward either Ziggy’s college fund or a future business that Ziggy starts.