When Nathan Kondamuri, co-founder of Pair Eyewear, was a child, he struggled to find a pair of glasses that matched her personality. Instead of wanting to wear his glasses, he found them to be a source of stress. When he met his business partner, Sophia Edelstein, in college at Stanford, he was able to find another person with a passion for helping children have a better say in their eyewear, while making it more affordable for families. During their undergraduate years, Nathan and Sophia conducted market interviews and fully immersed themselves in uncovering and understanding the eyecare needs of both children and their parents. This is how Pair Eyewear was born.
Their patent-pending fully magnetic frame allows kids to truly customize their glasses by swapping the design as often as they would like. Because the price range is affordable for most families, children can have multiple styles that easily attach by a magnet to the frame. The cost of the frame, including lens and the anti-glare and anti-scratch coating, is $95. Each magnetic frame-cover costs $24.99 and can easily be swapped out at any time. This allows children to be excited about the color and pattern of their glasses no matter the circumstance.
Who’s seeing a deal in the near future? #SharkTank
— Shark Tank (@ABCSharkTank) March 7, 2020
Pair Eyewear is seeking a strategic partner that is willing to provide an investment of $400,000 in exchange for 10% of their company. The Sharks are impressed by them as entrepreneurs, by their market research, and that they have 70% margins on their product, but they are concerned that they only have $100,000 in sales to promote the proof of concept. They are also concerned about the number of other investors already involved in this company. They have been using investors’ money for product development, legal considerations, and operational costs.
Underwhelmed with the sales and overwhelmed with the competition in this space, most of the Sharks start dropping out when they understood the full financial picture partnered with their current sales information. Lori Greiner and Katrina Lake, however, see the bigger picture and the market potential. They were excited about Pair Eyewear. Katrina and Lori worked with Sophia and Nathan to arrange a mutually agreeable deal. They will invest $400,000 in exchange for 10% equity in their company, however, they also want a $1.50 royalty until their $400,000 investment is repaid. Nathan and Sophia were very excited to partner with such prominent Sharks.
If you were a Shark, would you have invested in Pair Eyewear? Do you think that Lori and Katrina were smart to include a royalty to recoup their investment costs? As a consumer, would you purchase this product? Begin the conversation in the comments below!