As of 2023, Mad Rabbit, a company specializing in tattoo aftercare products, is estimated to be worth around $12 million. The company’s founders, Selom Agbitor and Oliver Zak, successfully pitched their product on the TV show Shark Tank and secured a deal with Mark Cuban. Here’s an overview of their journey:
Founders: Selom Agbitor and Oliver Zak come from different parts of the world, with Selom being a native of Accra, Ghana, and Oliver hailing from Cleveland, Ohio. They met while attending Miami University, where they became friends and business partners. Their entrepreneurial journey began with a successful dropshipping store for women’s swimsuits, which they sold even before graduating.
Founding the Company: After selling their swimwear business, Oliver Zak conceived the idea of launching a line of tattoo aftercare products to prevent discoloration. Selom was initially hesitant but eventually joined Oliver in this new venture. They invested $300 to create their first tattoo moisturizing balm in 2019. Mad Rabbit saw significant success in its first year, generating $400,000 in revenue from the Tattoo Balm alone. They expanded their product line to include lotions and gels, achieving $2.8 million in sales in 2020.
Shark Tank Appearance: In 2021, Selom and Oliver appeared on Shark Tank, seeking $500,000 for 5% equity. Despite their impressive $10 million valuation, the Sharks were impressed by their sales figures and business acumen. They were making $300,000 per month with a 20% profit margin, and none of them were working full-time on the venture. Kevin O’Leary and Mark Cuban both offered $500,000 deals, but the founders ultimately chose Mark Cuban’s offer, giving him 12% equity.
Post-Shark Tank: After their successful appearance on Shark Tank, Selom and Oliver quit their jobs to focus full-time on Mad Rabbit. Mark Cuban became the company’s largest investor, and the founders experienced a financial boost. They expanded their product line to include tattoo sunscreen and other types of creams, making their products available through MadRabbit.com, Urban Outfitters, and Amazon. In January 2022, they signed an exclusive 3-year digital media deal with Inked Magazine, giving them access to Inked’s large online and social media audience.
By May 2021, the company had generated $4 million in year-to-date sales and anticipated reaching $12 million in revenue for the year. To support further growth, Mad Rabbit raised an additional $4 million, with Mark Cuban participating in the funding. The company is estimated to generate $10 million in annual revenue and is valued at $12 million. However, they may need to reconsider their advertising strategy due to economic challenges.
Mad Rabbit’s success story demonstrates the potential for innovative products in niche markets and the impact of a strategic partnership with a well-known investor like Mark Cuban.