Legacy Shave Shark Tank Update - Net Worth, Pitch & Deal - Shark Tank Insights (2024)

Shaving is a daily task for many men around the world. This enhances their personality traits and gives them a better appearance. But using a traditional saving cream and brush wastes a lot of cream and elbow grease. Moreover, it’s old and outdated. So you can have the updated version of shaving – Legacy Shave.

Legacy Shave is the first-ever shaving cream dispenser with an attached brush. This brush releases a small shaving cream with just a pump. This allows no wastage and proper use of the product. This dispenser attaches to every shaving cream in the market. It doesn’t discriminate in gender so women can use it too. This shaving cream dispenser can be attached to bottles of all sizes.

Entrepreneur Mike Gutow converted his deceased father’s last wish into a business. The pitch was great. The best presentation ever as per Mark Cuban. However, sales were not very impressive. He demanded for $300,000 for 10% equity. But will Sharks invest in shaving gadgets with poor sales records? Let’s find out.

Legacy Shave Net Worth

Mike Gutow asked for a $300,000 investment in exchange for 10% equity in his company. This meant he valued his company at $3 million. He made a deal with Lori for $700,000 with a 3% royalty on total sales in exchange for 95% equity. This new deal valued his company at approximately $750k. After the show aired, Legacy Shave saw a big increase in website traffic, sales, and social media exposure. They sold out its remaining stock within a week, and the company had 800 customers, with 2,500 units sold by November 2022. However, the business journey slowed down in 2023 due to low stock. With an estimated 5% yearly growth rate (given the challenges faced), the current net worth of Legacy Shave is about $780k.

Legacy Shave Shark Tank Update

What Happened to Legacy Shave after Shark Tank

After the Shark Tank appearance, the remaining stock of Legacy Shave was sold within a week. Soon the company will have 800 customers with 2,500 units sold till November 2022. The business journey went slow in 2023 due to low stock. But they were ready to sell more with the better product line.

Did Legacy Shave get a deal on Shark Tank?

Yes, Legacy Shave got a deal with Lori for $700,000 with a 3% royalty on net sales in exchange for 95% equity.

Founders & their Backstory

Mike and his brother wanted to gift their father an antique shaving brush 28 years ago. But his father didn’t like it which disappointed them. So they decided to upgrade it using raw materials like clay. He tried and was very happy. They designed a prototype but it all ended up in the garage.

When his father passed away from cancer, they reached out in his garage to see 3,000 upgraded shave dispensers. He used to assemble them when he was on his chemotherapy. He also left a note advising his son to take the shot and try the business. So they worked on it.

Initial Pitch

Mike introduced himself to the Sharks panel. He then placed his demand of $300,000 for 10% equity. He explained how shaving cream is wasted as only half of the product is applied. This also causes cuts and burns. This was the traditional way our ancestors used to shave. But not anymore as Legacy Shave has invented a new gear.

Legacy Shave is the first ever shaving equipment that has both cream and brush attached. With just one pump, you can pump the cream out and brush it with an attached brush. Moreover, they can be attached to every type of foam bottle available. Even on travel size. It can be used by both men and women.

Mark gave a stand ovation and exclaimed it was the best presentation ever. Sharks got to try the samples. Robert appraised the product.

Queries about the product

Robert inquired about the selling price of each. Mike answered that the sell price of each dispenser is $24.95. Robert then inquired about the cost of manufacturing. Mike replied that it cost $5.39 to make each. Lori inquired about his backstory. He then came up to Shark Tank to showcase his business. Kevin’s eyes were watery after the backstory, but they came back on sale.

Robert inquired about the sales. Mike informed me that they sold 100,000 units for a million-dollar sale in 5 years. Kevin asked him to break down the sales per year. Mike mentioned that they made $70,000 in the first year, $370,000 in the second year, and $390,000 in the third year. Kevin inquired if they were making money in the first year. Mike replied with a no. Robert inquired about the sales last year. Mike replied it was $96,000.

Robert then inquired about the estimated sales this year. Mike answered that it was $42,000 and a purchased order of $63,000. Mark inquired about the reason for the decline in sales. Mike replied that they had lost money as in this family business. Robert inquired about the amount of money that he has lost in the past 5 years. Mike replied that they had invested 400,000 dollars in this business. He went on to explain that they are a direct-to-consumer business.

Shark’s Responses & Final Deal

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Barbara interrupted him to say that he was a good salesperson. But he doesn’t know how to communicate. So she stepped out. Mark was next to step out as he doesn’t think they investing in a business with no money will be easy. Mike tried to explain that the product isn’t limited to the shaving industry. They can be used for other products as well.

Kevin thinks the sharing industry is very saturated and has big competitors. So he stepped out. Robert also stepped out as he thinks there are many challenges in his business. Lori was interested in its adaptability, and it has a patent. But it lacks sales and their experience in consuming experience. So, she made a royalty deal. Lori made a surprisingly huge deal.

She offered $1 million with a royalty of 3% of total sales in exchange for 100% equity. Mike counter-offered $1 million with a royalty of 3% from total sales for 95% equity. Mike wanted to hold on to some share of his company. Lori wanted to revise her offer. She now counters the offer as $700,000 with a 3% royalty on total sales in exchange for 95% equity.

Mike was glad and accepted the deal. Barbara inquired if his dad would be here and what it would feel like. Mike stated that he had his ring with him at the moment. He would have said let’s go.

What Went Wrong with Legacy Shave on Shark Tank

The pitch was decent and impressive. But the sales were not good enough. Sharks stepped out due to the poor sales and huge risk factors. But Lori got a leap of faith and got the deal for $700,000 with a 3% royalty on total sales in exchange for 95% equity.

Product Availability

Legacy Shave is an online business that sells shaving cream dispensers with zero mess and waste. They have extended their product line to razor blades. You can purchase a pack of 10 with discount rates. Check their website to explore better.

Conclusion

Entrepreneur Mike Gutow is on Shark Tank Season 14 to sell their shaving cream dispenser product, Legacy Shave. This product is amazing as it uses a small amount of cream and creates no mess. Mike demanded $300,000 for 10% equity. But sales were not good enough to attract Sharks.

All four Sharks stepped out except Lori. Lori proposed a huge offer. She offered $1 million with a 3% royalty on total sales in exchange for full 100% equity. However, Mike still wanted to stay with his company so he counter-offered. The deal was sealed when Lori agreed to $700,000 with a 3% royalty on total sales in exchange for 95% equity.