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Sisters and confounders of Luna Magic, Mabel and Shaira Frias, recognized that the cosmetic and beauty industry rarely targets the Latina market. With this market sector left relatively untapped, the sisters decided to create high quality and affordable cosmetics line with a Latina flair. Although the sisters are on two totally different professional paths, they both felt that they could really crack into the competitive cosmetic industry with their targeted marketing approach.

After seeing early success with launching into big-box retailers such as Walmart, the Frias sisters need to partner with a Shark that can help them with the logistics of the business. Seeking a $200,000 investment in exchange for 10% equity, Mabel and Shiara need a partner that can help them be successful in their test markets so that all Latina women have affordable access to cosmetics that perfectly highlight their natural beauty. The Sharks are surprised they are such a young company and have already made it so far with Walmart that they not only are in 1,000 stores but are also testing out endcap sales which is a big deal for retail spaces.

Because the sisters have been working since they were 14 years old, they have been able to save a considerable amount of money, which they have invested into Luna Magic. The company currently has $157,000 in the bank right now, which is a testament to their initial $250,000 investment. While the Sharks are impressed with their product and their success, many have competitive businesses and therefore can not invest. Barbara Corcoran does offer to provide a $250,000 line of credit in exchange for 30% equity. She will also help them to fund future purchase orders. They accept her offer and officially partner with Barbara Corcoran.

Do you think that Barbara made a wise decision to invest in Luna Magic? Given that the cosmetic market is a very competitive one, would you have invested in this company if you were a Shark? Start the conversation in the comments below!

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