Marc Herzberger and Cheng Kue entered the Shark Tank with a bold idea. They wanted to change the fan gear market with their startup, The Hype Company.
Coming from Denver, Colorado, they introduced the Sharks to their customizable slide sandals. As Marc said, “Sharks, have you ever noticed how stale fan gear has become? It’s the same old product with just a different sticker for each team.”
Their solution? Slides with interchangeable straps, allow people to switch designs based on their mood or occasion. Let’s see what happened to The Hype Company After Shark Tank.
Bringing Something New to Footwear
The Hype Company‘s innovative idea was that customers could switch out the straps on their slides, offering countless design options.
Cheng painted a picture of the product’s appeal: “Imagine it’s Saturday morning, you’re off to watch your favorite college football team… but then Sunday morning rolls around, and it’s time to change out the straps.”
With these slides, customers can mix and match designs for different events without buying new shoes.
The company’s mission was clear. They wanted to shake up the footwear industry. With over 30 years of combined experience in footwear, Marc and Cheng were confident they could deliver a durable and stylish product.
“With over 30 plus years between Mark and I in the Footwear industry, We’re able to bring you a super soft, flexible, long-lasting durable outsole and a sleek silhouette with infinite design choices,” they told the Sharks. They were asking for $125,000 for 5% of their company to help them grow and reach more customers.
Not All Sharks Were Convinced
While the concept intrigued all the Sharks, not everyone was ready to invest. Lori Greiner and Mark Cuban decided to pass due to the heavy competition in the footwear market.
Kevin O’Leary, though impressed by the pitch, was unsure because Marc and Cheng didn’t have enough data on how much it costs them to acquire a customer.
Barbara Corcoran, however, saw potential. She liked the direct-to-consumer model and the customization aspect, believing it could be a hit on social media.
“I think you could have a blast on social media because of the aspect of switching the tops,” she said, imagining how fun and creative the idea could be.
Barbara offered $125,000 for 25% equity, split between cash and a credit line. Marc and Cheng were eager to accept Barbara’s offer, but they asked for more cash upfront to avoid having to raise more funds later.
After some negotiation, they agreed on $100,000 in cash and $250,000 in credit for 25% equity. As they explained to Barbara, “We’re fine with the equity portion of that, but we don’t want to have to go back out a year from now and raise more capital and dilute your equity or our equity.”
After the Shark Tank was not an easy
After Shark Tank, The Hype Company faced the challenge of scaling their business to meet higher demand. Barbara’s investment helped them expand operations and secure key partnerships, including licensing deals with the NCAA for sports team-branded slides.
However, as they grew, they ran into problems with production delays. Product quality and price. Customers loved the concept, but early quality issues threatened to slow down their progress.
Marc and Cheng quickly took action. They improved their manufacturing process to ensure the slides were as durable as advertised and streamlined their shipping process to reduce delays.
Their efforts paid off. Retailers like Target began stocking their products, giving them greater visibility, and their online customization tool allowed customers to create truly personalized shoes. Their unique approach to customer interaction and style gave them a competitive edge.
Success in the Market
By 2024, The Hype Company had grown into a strong player in the custom footwear market. With lifetime sales of $500,000 and an estimated net worth of $1.5 million, Marc and Cheng had turned their small startup into a brand recognized for creativity and quality.
As Cheng had said during their pitch, “We’re in the process of disrupting the footwear industry,” and their post-Shark Tank journey proves they’ve done just that.
In the words of Marc and Cheng, “Are you ready to get hyped?” The Hype Company certainly was
