Spirit Hoods are unique accessories that can be worn as a hat, gloves, and scarf all at the same time.
Each SpiritHoods is made in California out of high-quality fake fur and is shaped like a certain animal. Ten percent of the company’s net profits go to protecting endangered animals.
Alexander Mendeluk and Marley Mahratta, who are friends, came up with the idea for and helped start SpiritHoods in 2009. Alex has acted before. When he lived in Los Angeles, he worked on TV and in the theatre.
After that, he started taking pictures of events. In 2016, he left SpiritHoods to become CEO of a company that helps brands use social media influencers to their advantage.
Marley has a degree in Digital Arts from the University of Oregon, and she has worked on making websites.
He is still SpiritHoods’ Marketing Director. The company’s first idea was to make a fluffy animal hat that any animal, from a fox to a bear, could wear. The hats also had long sleeves that ended in paws, so you could put things like your keys, wallet, and other everyday carry items in them.
With this in mind, Alex and Marley asked their professional photographer friend Ashley Haber and designer friend Latif Hamilton (aka Chase) to join the team.
They were up and running quickly and made a lot of money, especially in the winter, thanks to a successful crowdfunding campaign and creative use of social media.
They know how to use social media and email marketing well, and they wear their crazy fake fur hats to music festivals to keep people excited about the brand.
In 2013, they put washable speakers in some of their hats so that they could be used with headphones. So far, endorsements from celebrities like Snoop Dogg and Justin Bieber have brought in about $10 million. But sales were starting to go down, and they needed an investor to help them pay off their debts and grow the business.
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SpiritHoods: Net Worth 2022
Alexander and Chase go on “Shark Tank” to try to get a $450,000 investment in exchange for 15 percent of their company. This means that it’s worth $3 million as of 2022.
Who Founded SpiritHoods?
Alexander Mendeluk, Chase Hamilton, Marley Marotta, and Ashley Haber.
What Happened At The Shark Tank Pitch With SpiritHoods?
Alexander and Chase go on Shark Tank season 5 episode 11 looking for a $450,000 investment in exchange for 15 percent of their company. This means that it’s worth $3 million.
They give a short talk about SpiritHoods, which is a group of people who want to express themselves and protect the environment.
The hats have “sleeves” that can be worn as a scarf, paw-shaped pockets for the hands, and even a secret pouch with washable speakers that can play music from a smartphone or iPod.
SpiritHoods are given to each Shark. Mark Cuban is missing until they bring out a model wearing a crazy SpiritHoods in the colours of the Mavericks’ team.
They say that they are putting out a line of “fanimal” SpiritHoods in the colours of sports teams. Robert Herjavec doesn’t think adults will wear SpiritHoods, but Kevin O’Leary cares more about the business than about fashion.
“I don’t care who wears them,” he says next. “I care about how many of them you sell.” Sales of $9.8 million are enough to make the Sharks look twice at Spirit Hoods and make them look even better. Online, you can buy the hats at Harrods, Zappos, and Nordstroms.
Each SpiritHoods made in Los Angeles costs $29 to make and sells for $99. Robert asks how much money was made in the past two years. Two years ago, sales were worth $4.5 million, and last year, they were worth $3 million. The SpiritHoods are doing well, making an average of $3 million a year. However, they lost $500,000 because they tried to grow too quickly last year.
They want the investment to start up again, but this time they will be more careful because of what went wrong before. Kevin O’Leary thinks it’s “extremely dangerous” that their sales have dropped from $4.5 million in their best year to $3 million on average. He’s leaving because he doesn’t think the market can keep going.
Robert Herjavec put money into a similar company, which he says was “hot” for about two years before the market dropped. He leaves. Barbara Corcoran “would rather put her money into companies that are growing than in ones that are going down.” She is worried about how sales have dropped since their best year. She has left.
Mark says that he loves the company and thinks the idea is cool and different, but $99 is just too much for him. He’s gone. Daymond offers $450,000 for a 50% stake in the company, but he wants to licence out the SpiritHoods, so the price would have to go down.
He thinks that the brand needs to do more than just make hats if it wants to keep going. After a short talk, they make a counter offer of 22% plus a royalty on any licence. John won’t negotiate because he says he already has “buyer’s regret.” Now that he’s gone, the two people leave the Shark Tank without a deal.
After the Shark Tank, SpiritHoods
SpiritHoods didn’t get a contract from the Sharks, but they did get to keep their business, which helped the business and brand. In an interview afterward, Alexander said that turning down John’s aggressive offer was good for the brand because fans saw it as “not selling out.”
SpiritHoods has added jackets, vests, shawls, and robes for women, men, and children, as well as blankets, throws, and pillows for the house, to its premium brand since it was on Shark Tank.
Several fake brands are sold on Amazon. Because of this, the company has less of a presence there. As of August 20, 2021, it is thought that the annual income will be $5 million.
Do They Still Have A Business?
SpiritHoods is still in business and doing well. Its product line has grown to include many different kinds of clothing. They have also added sports items to their product line and worked with other companies that make similar things.