Flipoutz was an innovative toy bracelet business created by three entrepreneurial siblings: Jake, Lachlan, and Erin Johnson. Their idea was simple yet engaging, kids could collect and trade Flipoutz coins, which featured unique designs and motivational messages.
The coins could be tracked online as they changed hands, adding an interactive element that encouraged social engagement. The Johnson family launched Flipoutz in 2010, and within a year, they found themselves standing in front of the Sharks on Shark Tank Season 2, hoping to take their business to the next level.
The Shark Tank Pitch: A High-Stakes Negotiation
The Johnson siblings entered the tank seeking $100,000 for 20% equity, valuing their company at $500,000. They impressed the Sharks with their confidence and the product’s interactive concept, but some investors had concerns.
Key Moments from the Pitch:
- Kevin O’Leary and Barbara Corcoran expressed doubts about the high marketing costs.
- Daymond John saw potential and offered $100,000 for 33% equity.
- Kevin O’Leary and Robert Herjavec later matched the deal.
- After some back-and-forth negotiations, Daymond, Kevin, and Robert collectively invested $100,000 for 33% equity.
The deal was sealed, and the Johnsons left the tank with three major Sharks backing their brand.
Flipoutz Pitch on Shark Tank (Quick Info Card)
| Company name | Flipoutz |
| Product | Toy bracelets with collectible, tradeable flipout coins |
| Episode | Season 02 Episode 03 |
| Founders | Jake, Lachland, and Erin Johnson |
| Asked for | $100,000 for 20% equity |
| Final deal | $100,000 for 33% equity |
| Sharks | Daymond John, Kevin O’Leary, and Robert Herjavec |
| Location | Davidson, North Carolina |
Post-Shark Tank Growth: A Rapid Rise in Popularity
The Shark Tank effect worked wonders for Flipoutz. Following the show, they secured retail placements in major stores like Toys R Us and Hallmark, boosting their sales significantly. Their online platform also flourished, with children across the globe tracking their coins, adding to the product’s viral appeal.
Other milestones included:
- Expansion into international markets.
- Increased production capacity to meet demand.
- Strong community engagement through their website.
For a couple of years, Flipoutz was a thriving business, thanks to its unique blend of physical and digital interactivity.
The Fall of Flipoutz: What Went Wrong?
Despite initial success, Flipoutz struggled to sustain long-term growth. In 2013, the Johnson family sold the company to Wild Craze Inc., a consumer products holding company. The acquisition details were not disclosed, but it included stock in the company.
By 2015, Flipoutz had ceased operations, and the brand disappeared from retail shelves. Several factors contributed to its downfall:
- Increased competition in the toy market.
- Diminishing novelty of the product.
- Difficulty in sustaining the online tracking engagement.
- High marketing and production costs.
The Flipoutz website eventually went offline, and its social media accounts became inactive. Though some remaining stock could still be found on sites like Amazon and eBay, the company itself was no longer in business.
How Much Did the Sharks Make?
While the exact financial outcomes of the investment remain unknown, it is likely that the Sharks did not see a major return on their investment. The company had a valuation of $303,000 after the Shark Tank deal, but with the eventual closure of Flipoutz, their stakes likely became worthless.
Even though the product initially gained traction, the inability to scale and sustain long-term profitability meant that Flipoutz did not become one of Shark Tank’s legendary success stories.
Life After Flipoutz: The Johnson Siblings’ Next Ventures
After selling Flipoutz, the Johnson siblings pursued new business ventures:
- Jake Johnson co-founded Beaux Up, a fashion brand specializing in upcycled bow ties.
- Lachlan Johnson explored digital entrepreneurship, launching an online educational platform.
- Erin Johnson has kept a lower profile, focusing on personal and professional development.
Their story inspires young entrepreneurs, showing that success is possible at any age, even with challenges. However, the net worth of Flipoutz’s founders, Jake, Lachlan, and Erin Johnson, remains unknown.
Conclusion: The Flipoutz Legacy
Although Flipoutz is no longer in business, its journey is a testament to innovation, entrepreneurship, and resilience. The Johnson siblings made history as some of the youngest entrepreneurs to pitch on Shark Tank, and their ability to captivate the Sharks and secure a deal remains impressive.
While Flipoutz ultimately failed as a long-term business, its brief success serves as a valuable case study for aspiring entrepreneurs, highlighting the importance of market sustainability, continuous innovation, and strategic execution in building a lasting brand.
