Tattoos last forever, but some lose their freshness. Mad Rabbit provides tattoo aftercare products to prevent discoloration and keeps your body art looking vibrant. Founders Selom Agbitor and Oliver Zak pitched the product on Shark Tank and inked a deal with Mark Cuban. As of 2022, Mad Rabbit is worth an estimated $12 million.
About the Founders
Oliver Zak grew up in Cleveland, Ohio, while Selom Agbitor is a native of Accra, Ghana. They came from different parts of the world and crossed paths as students at Miami University.
They were introduced to each other when they became part of the Delta Sigma Phi fraternity. Oliver and Selom were ambitious entrepreneurs and started a dropshipping store for women’s swimsuits.
The duo put in a lot of effort to get the startup going. It became very successful, and they got to sell the swimwear company even before they became seniors.
Founding the Company
Shortly after selling the business, Oliver thought of launching a tattoo aftercare product line. He had several tattoos but didn’t know how to avoid discoloration. Oliver told his business partner about it, but Selom was initially hesitant.
When they researched the product’s niche, they discovered it didn’t have too much competition. Once again, they rolled up their sleeves and got to work. They both invested $300 in making the first tattoo moisturizing balm in 2019.
In the first year, Mad Rabbit made $400,000 in revenue just selling the Tattoo Balm. They added new products such as lotions and gels and did $2.8 million in sales for 2020. Apart from direct sales, they offer a subscription service.
Shark Tank Appearance
By 2021, Selom and Oliver were already doing well but wanted to make Mad Rabbit the face of the tattoo aftercare industry. They appeared on season 12 of Shark Tank, seeking $500,000 for 5%.
The Sharks were blown away by the $10 million valuation which luckily didn’t hinder them. Thankfully they had sales to back up it. At the time of the pitch, they were making $300,000 per month with a 20% profit margin. Also, it was impressive that neither of them was working full-time on the venture.
Kevin O’Leary was the first to express his interest, he proposed a $500,000 loan at 9.75% interest for 5% equity. Cuba, on the other hand, offered the same amount but for 12% equity. The founders were given time to think and clearly wanted to get Lori on board but they went with Mark’s deal.
After Shark Tank
After Shark Tank, Selom and Oliver quit their jobs to work full-time on the business. The deal with Mark Cuban closed and the billionaire is now the company’s largest investor. The founders revealed, the show gave them a nice financial boost and had people contacting them offering to help.
The company added a tattoo sunscreen to its product line along with new types of creams. The products are available to buy through MadRabbit.com, Urban Outfitters and Amazon. On their website, they proudly reveal how they have helped preserve over 1,705,000 tattoos!
In January 2022, they signed an exclusive 3-year digital media deal with Inked Magazine. This means Mad Rabbit is the only tattoo aftercare product on Inked’s online shop and flagship store in New York City. Also, they will get access to Inked’s 60 million fans on social media.
By May 2021, the company had $4 million in year-to-date sales and was expecting to reach $12 million in revenue for the year. To fund further growth, Mad Rabbit raised an additional $4 million which Cuban also participated in.
Mad Rabbit is estimated to make $10 million in annual revenue and is valued at $12 million. Due to their massive advertising spend, Mad Rabbit has sacrificed profits over growth. Given the tough economic climate, they might have to scale back on advertising in the future.