What is Angel Shave Club and what problem does it aim to solve? Angel Shave Club was a subscription service designed specifically for women, offering high-quality razors in soft pastel colors delivered every two or four months. It aimed to address the “pink tax” where women’s personal hygiene products often cost more than comparable men’s products and provide an affordable, female-focused alternative in the shaving industry.
Summary
- Angel Shave Club, a subscription razor service for women, appeared on Shark Tank Season 10 seeking $300,000 for 10% equity.
- Founders Iskra Tsenkova and Brian Archambo pitched their business, highlighting the high-quality razors, convenient delivery, and focus on female customers.
- The Sharks were concerned about market competition, supply chain issues, and the company’s valuation, ultimately leading to no deal being offered.
- Despite not securing a deal, Angel Shave Club received $200,000 in funding from Quake Capital and entered their accelerator program.
- Sadly, the company ceased operations in May 2020 due to the challenges posed by the COVID-19 pandemic.
Angel Shave Club Shark Tank Update | Shark Tank Season 10
Angel Shave Club was a subscription service that aimed to disrupt the women’s shaving industry.
It offered high-quality razors delivered straight to your door, just like the popular men’s shave clubs.
But instead of the typical dark colors, Angel Shave Club offered razors in soft, feminine pastels.
A Shave Club Designed for Women
The idea was simple: provide women with a convenient and affordable way to get the razors they need.
Angel Shave Club wanted to be the go-to brand for women’s shaving needs, offering a unique and personalized experience.
Angel Shave Club’s Shark Tank Pitch
1. The Pitch
| Entrepreneurs | Iskra Tsenkova and Brian Archambo |
|---|---|
| Business | Angel Shave Club |
| Ask | $300,000 for 10% equity |
| Deal | No deal |
| Sharks | Lori Greiner, Kevin O’Leary, Mark Cuban, Barbara Corcoran, Sara Blakely |
| Season – Episode | Season 10 – Episode 10 |
| Original Air Date | November 11, 2018 |
| Website | Angel Shave Club |
| Key Points of Pitch |
|
| Why Sharks Declined |
|
2. The Founders and Their Vision
Iskra Tsenkova, the founder of Angel Shave Club, was driven by a desire to create a shaving experience specifically for women.
She noticed that women’s razors were often more expensive than men’s, despite being essentially the same product. She wanted to offer a more affordable and enjoyable option.
3. The Ask and the Response
Iskra and her husband Brian entered the Tank seeking $300,000 in exchange for a 10% stake in their company.
This meant they valued Angel Shave Club at $3 million. The Sharks, however, were hesitant.
4. Why the Sharks Said No
The Sharks had several concerns. They worried that established companies like Gillette could easily create their own women’s shave clubs and outcompete Angel Shave Club.
They also questioned whether the subscription model would be sustainable, as customers might lose interest or find cheaper alternatives. Ultimately, they didn’t believe the company was worth the asking price.
Angel Shave Club After Shark Tank
1. Securing Funding from Quake Capital
Even though they didn’t get a deal on Shark Tank, Angel Shave Club didn’t give up. They caught the attention of Quake Capital, a venture capital firm that invests in women-led businesses.
Quake Capital saw potential in Angel Shave Club and invested $200,000 in the company. This investment gave Angel Shave Club a much-needed boost and allowed them to continue growing.
2. The Impact of the COVID-19 Pandemic
Unfortunately, like many small businesses, Angel Shave Club was hit hard by the COVID-19 pandemic.
The pandemic disrupted supply chains and made it difficult to get their products to customers. This, combined with an already competitive market, put a strain on the company’s finances.
3. The Company’s Closure
Sadly, Angel Shave Club was unable to overcome these challenges. In May 2020, the company announced that it was closing its doors.
This was a disappointing end for a company that had started with so much promise. While the exact reasons for the closure are unclear, it’s likely that the pandemic played a significant role.
Lessons Learned
Angel Shave Club’s journey, though ultimately ending in closure, offers valuable lessons for aspiring entrepreneurs.
1. The Challenges of the Subscription Model
While subscription services can be appealing, they come with inherent challenges. Customers may cancel their subscriptions due to various reasons, like finding a better deal elsewhere or simply losing interest.
Businesses relying on this model need to constantly attract new customers and find ways to keep existing ones engaged.
2. The Importance of Market Differentiation
In crowded markets, standing out is crucial. Angel Shave Club faced stiff competition from established brands with larger budgets and wider reach.
To succeed, businesses need a unique selling proposition that clearly differentiates them from the competition. This could be through innovative products, exceptional customer service, or strong branding.
3. The Impact of External Factors on Business
Unforeseen events, like the COVID-19 pandemic, can severely impact even the most promising businesses.
It’s essential for entrepreneurs to have contingency plans and be adaptable to changing circumstances.
Diversifying offerings, building a strong online presence, and maintaining financial reserves can help businesses weather unexpected storms.
FAQs
What was the “pink tax” that Angel Shave Club addressed?
The “pink tax” refers to the practice of charging more for products marketed to women, even when those products are essentially the same as their male counterparts. Angel Shave Club aimed to offer women a fairer price for high-quality razors.
What were the key features of Angel Shave Club’s subscription service?
Angel Shave Club offered a convenient subscription service delivering razors to customers every two or four months. They offered different color options and aimed to provide a personalized experience.
What were the main reasons the Sharks declined to invest?
The Sharks expressed concerns about the competitive landscape, the sustainability of the subscription model, and the company’s valuation. They felt that the market was already saturated and that Angel Shave Club might struggle to compete with larger, established brands.
What were the contributing factors to Angel Shave Club’s closure?
While the exact reasons remain unclear, the COVID-19 pandemic likely played a significant role. The pandemic disrupted supply chains and created financial challenges for many businesses, including Angel Shave Club.
The Bottom Line
Angel Shave Club had a noble mission and a promising start. They identified a need in the market and offered a solution that resonated with many women. However, they faced significant challenges, including strong competition and the unforeseen impact of the COVID-19 pandemic.
Their story serves as a reminder that even with a good idea and dedicated founders, success in the business world is never guaranteed. It requires resilience, adaptability, and a bit of luck to navigate the ever-changing market landscape.
