Rounderbum
Rounderbum is a company from Hollywood, CA, that wants to do for men's bodies what the Wonder Bra has done for women. Rounderbum has created a line of underwear that adds definition to men's pectorals and bottoms through a little bit of extra padding and compression "shape-wear' to make the body look better under clothes.
Rounderbum launched as a business in 2015 and has grossed "more than" $1,000,000 since. In the last year, the business has grossed $700,000 alone. The entrepreneur projects earning $1,000,000 by the end of the current year and $2,700,000 in the year to follow. The entrepreneur estimates that the business nets 25-35% on every sale.
Most of the sales for the product are done via Rounderbum's online store and on Amazon. The company has a retail location in West Hollywood, CA, that also double as a fulfillment center for online orders.
The company attracts potential buyers through targeted Facebook advertising.
Prior to starting Rounderbum, the entrepreneur went to school for neuroscience.
This deal aired on Episode 9.18.
Making A Deal
Mark declined to participate in the deal because, he revealed, he generally "goes commando" and does not wear underwear.
Mr. Wonderful, however, saw an opportunity to make one of his famed royalty deals and pitched the entrepreneur on the idea of the $150,000 capital investment in exchange for a $2 royalty on every item sold until he'd earned back $300,000. He would also receive 5% equity.
Considering the way the Stats Shark values deals, that would actually add $1,500,000 to the value of the company rather than take value away with the typical Shark Tank Bite.
If the margin is indeed what the entrepreneur claimed it to be per sale (25-35%), the company could easily absorb the royalty, realizing the advantage of a royalty over a traditional loan which would be that it is only repaid as the company makes sales instead of over a fixed timeframe.
The entrepreneur accepted Kevin's offer.