The investors’ biggest question for the founders, who wanted $100,000 in investment in exchange for 25% equity, was what differentiated No Mo-Stache from other hair removal products already in the market. According to Paschall and Vasseghi, not only is their waxing kit portable and discreet, but it is also mess-free and uses cold wax to reduce the risk of burning the skin. Paschall also revealed that they’d reached $400,000 in sales in two years, with the company on track to make $350,000 that year. (The episode aired in November 2017.)
As for why only 60 Sephora stores were carrying their product, the entrepreneurs explained that the retail company wanted to make room for new trends even though No Mo-Stache sales had been consistent. They had since worked on diversifying their distribution channels and would soon launch in five other stores.
Kevin O’Leary proposed $100,000 for only 10% equity and $1 in royalty until he earned back $300,000. Guest Shark Bethenny Frankel then offered $100,000 for 40% equity to help grow the brand as part of what she envisioned as a Skinny Girl’s Solutions Kit, complete with nipple covers, sticky tape, etc. Lori Greiner supported this idea and joined Frankel’s deal. Despite O’Leary lowering his royalty demand, the founders went with Greiner and Frankel. “As much as profit is genderless, I just feel like [No Mo-Stache is] a brand to empower women and they get the vision,” Vasseghi said.
