The Woobles, a crochet kit business, captured the attention of viewers when it appeared on Season 14 Episode 2 of the well-known TV show, Shark Tank. Founded by entrepreneurs Adrian Zhang and Justine Tiu, The Woobles aims to make crochet accessible and enjoyable for people of all ages. Through their innovative business model and expert-guided videos, customers are taught to create unique handmade crochet gifts with ease.
On the show, Zhang and Tiu were seeking an investment of $250,000 in exchange for a 5% equity stake in their flourishing company. Their exceptional presentation demonstrated the potential of The Woobles to teach beginners about crochet kits and expand the world of handmade crafts.
The founders’ hard work paid off when they successfully struck a deal with investors Mark Cuban and Lori Greiner, securing $450,000 for their crochet education business. This Shark Tank update showcases how The Woobles has grown and become a compelling force in the crafting world, generating significant revenue while inspiring countless individuals to get hooked on crochet.
Meet The Founders
Justine Tiu’s Journey
Justine Tiu is an inspiring entrepreneur and co-founder of The Woobles, a company that aims to make crochet accessible and fun for people of all ages. With a Bachelor of Science in Biomedical Engineering from Duke University, Justine has a strong foundation in science and technology. She went on to use her skills and knowledge for varied roles, including an impressive stint as a Senior UX Instructor at the prestigious Kenzie Academy. Despite her strong tech background, Justine has always held onto her passion for crochet, which eventually led to the creation of The Woobles.
Adrian Zhang’s Background
Adrian Zhang, the other half of The Woobles’ founding team, has an equally diverse and interesting background. He graduated from Duke University with a degree in Electrical and Computer Engineering, as well as a minor in Economics. Following his passion, Adrian pursued a career in finance and worked at a leading financial institution, Deutsche Bank. But fate had different plans for him, as his creative and entrepreneurial spirit led him to team up with Justine to build The Woobles and make learning crochet enjoyable for everyone. The duo’s combined skills and drive have been instrumental in the growth and success of their crochet education company.
The Woobles’ Shark Tank Experience
Pitch to The Sharks
Entrepreneurs Adrian Zhang and Justine Tiu entered the Shark Tank during Season 14 Episode 2, seeking $250,000 dollars for a 5% equity stake in their business, The Woobles. The couple aimed to revolutionize the world of crochet by creating fun and simple kits that teach beginners how to crochet adorable yarn friends instead of the usual potholders.
Justine, a former Google Classroom software engineer, started crocheting as a hobby to unwind after work. Together, Adrian and Justine turned this hobby into a full-time six-figure business, hoping to make crochet accessible and easy to learn for everyone, young and old.
Remarkable Deal
As they delivered their pitch, the sharks showed interest in the product. Mark Cuban, Lori Greiner, Kevin O’Leary, Barbara Corcoran, and Robert Herjavec listened carefully to the entrepreneurs’ proposition. When it came time to make offers, it was Mark Cuban and Lori Greiner who made a jaw-dropping move.
Cuban and Greiner teamed up to offer $250,000 for a 5% equity stake in The Woobles, valuing the company at an impressive $7 million. This remarkable deal left the other sharks astonished, as Adrian and Justine were able to get two of the most valuable sharks on their team, strengthening their position in the market.
Products and Services
Crochet Kits
The Woobles offers a variety of crochet kits designed for people interested in creating amigurumi, the art of crocheting or knitting stuffed toys. Each kit typically includes the essentials, such as balls of yarn, a 4mm crochet hook, stuffing, yarn needles, and accessories to decorate the finished figure. The kits come in multiple varieties to cater to a wide range of users, from beginners to experienced crocheters.
Book Guide
In addition to the crochet kits, The Woobles has recently released a book guide on Amazon called “The Woobles Crochet Amigurumi for Every Occasion.” This book serves as an educational resource for crocheters, providing detailed instructions, patterns, and techniques for creating various amigurumi figures to celebrate special occasions.
Woobles Tutorials
To enhance the learning experience, The Woobles offers a collection of video tutorials that come with each kit. The tutorials guide users through the entire crocheting process, from basic techniques to completing the amigurumi figure. These tutorial videos are accessible through their website, enabling learners to follow along at their own pace and gain a thorough understanding of crocheting amigurumi.
Other Accessories
Apart from the crochet kits and educational resources, The Woobles also offers a range of accessories to assist users in their crocheting journey. Some of these accessories include extra yarn needles, crochet hooks of different sizes, and additional decorative items to customize the amigurumi figures. These accessories help users expand their creativity and hone their crocheting skills while working on their Woobles projects.
Business Model
Marketing Strategy
The Woobles has developed a friendly and approachable marketing strategy to reach a wider audience. They utilize social media platforms such as YouTube to provide instructional videos, making it easy for customers to learn crochet. They also engage in advertising campaigns on platforms such as Google and Amazon, targeting people with an interest in handmade gifts and DIY projects. Direct-to-consumer sales are a significant part of their strategy, ensuring they can maintain higher margins.
To create a buzz around their brand, The Woobles occasionally releases limited edition crochet kits, which entices customers to purchase while supplies last. This strategy helps generate excitement and drives sales for the company.
Revenue Streams
The primary revenue streams for The Woobles come from retail and wholesale sales of their crochet kits. They offer various starter kits for kids and adults that include all necessary materials, along with links to tutorial videos on YouTube.
Retail sales are primarily driven through their online store and e-commerce partnerships, while wholesale opportunities arise from collaborations with brick-and-mortar retailers who appreciate the uniqueness of the product line. The company focuses on maintaining healthy gross and net margins by monitoring factors such as landed cost and customer acquisition cost.
Managing the cost to acquire customers is essential for The Woobles to maintain a sustainable business model. They invest in targeted advertising and rely on organic growth through word-of-mouth and positive customer reviews. In some cases, The Woobles may offer commissions to influencers or brand ambassadors who can promote their products and generate more sales.
By effectively balancing their marketing strategy with various revenue streams, The Woobles has been able to grow from a modest $200 investment to a thriving business with a strong presence in the world of handmade gifts and crochet education.
Post-Shark Tank Updates
Sales Update
Since their appearance on Shark Tank, The Woobles has seen a remarkable increase in sales. The unique crochet product designed to make learning the craft more accessible for everyone has expanded its reach to thousands of customers. The company’s founders, Adrian Zhang and Justine Tiu, have been focused on scaling their business to meet the growing demand.
Investment Impact
After successfully securing a $450,000 investment from sharks Lori Greiner and Mark Cuban for 6% equity, The Woobles’ final valuation increased to $7.5 million. The additional capital has allowed The Woobles to boost production, refine marketing strategies, and support product development. The investment from these high-profile sharks has also given the company much-needed mentorship and guidance to navigate the challenges of the industry.
Community Engagement
The Woobles’ mission to make crochet accessible to all ages has resonated with over 100,000 people in their online community. This impressive engagement has been fostered through tutorials, events, and social media presence. Not only has the company enjoyed increased sales and revenue, but they have also built a meaningful connection with their customers, who actively contribute to The Woobles’ growing public profile. This user-focused approach has been instrumental in getting their message across and expanding their community.
With their continued success, The Woobles has the potential to become a significant player in the world of arts and crafts, offering a more accessible and enjoyable learning experience with their innovative product designs.
Future Plans
Product Expansion
The Woobles, a crochet kits company that appeared on Shark Tank Season 14 Episode 2, has plans for product expansion in the coming years. Having secured a deal of $450,000 from sharks Mark Cuban and Lori Greiner for 6% equity, the company is poised to invest in research and development of new crochet patterns and kits. This will not only diversify their product offerings but also attract more customers who are interested in various styles of crochet crafts.
There might be a possibility of the Woobles entering into other craft sectors or even incorporating modern technology into their kits. They may consider partnering with other innovative companies in the industry, such as Banana Phone and Turbo Trusser, to bring a fresh approach to their product line.
International Growth
Currently, The Woobles are focused on the United States market. However, given the success of their crochet kits, which raked in over $3.1 million in revenue, they have set their sights on international growth. With the backing of the sharks and their combined expertise, the company aims to expand its presence in countries outside of the United States.
Exploring international markets can help The Woobles tap into different audiences and bring their unique and educational crochet kits to people worldwide. To achieve this, they might collaborate with global distributors or launch localized marketing campaigns to cater to the diverse interests of the potential customers.
Efficiently utilizing the investment from the Shark Tank, The Woobles have a bright future ahead. By expanding their product lines and targeting international markets, they are well on their way to becoming a household name in the world of crafts and personalized handmade gifts.
