Pitch Introduction
Hypd Shark Tank update reveals how founders Cheng Kue and Marc Herzberger disrupted the footwear industry with their innovative customizable slides. The Denver-based entrepreneurs presented their unique interchangeable strap technology on Shark Tank Season 15, seeking investment to scale their revolutionary footwear concept that allows users to switch designs instantly.
Business Overview
Product/Service: Hypd offers customizable slides with interchangeable straps, allowing users to change designs from sports teams to personal styles instantly. The Slider Pro system features a detachable strap mechanism that transforms one pair of slides into infinite style possibilities.
Problem It Solves: Addresses the stale and repetitive nature of fan gear, eliminating the need for multiple pairs of shoes. Fans can now support different teams or express various styles with a single base and multiple strap options.
Target Market: Sports fans, college students, youth sports participants, and customization enthusiasts. The company focuses on NCAA licensing while expanding into esports, gaming, and lifestyle segments.
Unique Selling Proposition (USP): The patented two-component system allows straps and bases to ship separately, solving supply chain issues while enabling unlimited customization options with a comfortable, durable design.
| Company Detail | Information |
|---|---|
| Founded | 2020 |
| Founders | Cheng Kue & Marc Herzberger |
| Location | Denver, Colorado |
| Industry | Footwear & Apparel |
| Patent Status | Utility Patent Granted |
About Founder’s
Cheng Kue and Marc Herzberger bring over 30 years of combined footwear industry experience to Hypd. Cheng, born to immigrant restaurant owners, graduated from Georgia Tech with an industrial design degree and spent two decades designing for major brands including Fila, Adidas, Crocs, and Keen. Marc spent 10 years at Crocs focusing on supply chain and value chain analysis, giving him deep operational expertise.
- Cheng Kue: Industrial design expert with 20+ years at major footwear brands
- Marc Herzberger: Supply chain specialist with decade-long tenure at Crocs
- Combined experience: 30+ years in footwear industry
- Immigrant background: Cheng’s parents were first-generation restaurant entrepreneurs
Shark’s and Founder’s QnA
How do you sell these today?
At the moment we’ve got them direct consumer on the website. We are working through wholesale as well. We’ve also got drop ship on Fanatics, Finish Line, and Target.
Do you have a patent?
We do. We have a utility patent that was granted to us last year in Q4.
What is it for?
This Utility Patent it covers everything. We saw that during covid there was this really big hiccup that everyone had in supply chain for footwear forever. So what we end up doing was separating the two components so that they can be shipped separately. You can have bases and you can have straps and so the patent really covers the idea that two components come together to create an adjustable footwear.
Where are you from a sales perspective? Give me the history of the business.
So in the last four years we’ve done just over $500,000 of sales. That was on our original product on the slider. We’re now pivoting to the slider Pro which allows us to really scale this business.
What is the difference between original and slider Pro?
The original product over here is just a full normal piece of Footwear. It’s not the two components that are separable.
Where are you so far?
To date year to date’s $60,000.
What were last year’s sales?
Last year was not a great year for us. It was only $55,000 in sales.
What’s your customer acquisition cost going to be versus their lifetime value?
We have done a little bit of marketing it’s worked but we don’t have a ton of customer acquisition cost on this product yet just because we haven’t started that.
How do you convince us that this is actually a big business?
This year we’re going to expand our licenses by you know 20 to 30 licenses just in the NCAA space alone. Now got the ability to turn on Esports gaming lifestyle product.
Can I personalize it online myself as a consumer?
You absolutely can. Put my grandchild on each of my feet if you want.
What does it cost you in total to make one and what you sell them for?
We retail them for $60 a piece. They hold sale for 30. The cost is 1093.
What’s your number?
At 25% we get closer to 350,000.
I would give you $100,000 in cash and 250 in credit for 25%. What do you think about that?
Barbara I think we got a deal.
Key Stats & Financials
Hypd’s financial performance shows steady growth with their pivot to the Slider Pro system. The company maintains strong margins while scaling their direct-to-consumer and wholesale channels.
- Sales: $500,000 total over 4 years, $60,000 year-to-date at pitch time, $55,000 in previous year
- Margins: $10.93 production cost, $60 retail price ($49.07 margin), $30 wholesale price ($19.07 margin)
- Valuation: Initially requested $2.5 million valuation, accepted $1.4 million with deal
- Investment Request: $125,000 for 5% equity initially
- Use of Funds: Scaling operations, expanding licensing deals, and marketing for customer acquisition
| Financial Metric | Amount |
|---|---|
| Total Sales (4 years) | $500,000 |
| Year-to-Date Sales | $60,000 |
| Previous Year Sales | $55,000 |
| Cost Per Unit | $10.93 |
| Retail Price | $60.00 |
Business Potential and TAM
The customizable footwear market represents a significant opportunity as consumers increasingly seek personalized products. Hypd’s patented technology positions them uniquely in the sports merchandise and casual footwear segments, with expansion potential into corporate promotions and youth markets.
- Sports fan gear market: Multi-billion dollar industry with high engagement
- Customization trend: Growing demand for personalized products across demographics
- Supply chain innovation: Separate shipping of components reduces logistics costs
- Licensing expansion: NCAA, esports, and lifestyle brands offer growth avenues
Hypd: Ideal Target Audience & Demographics
| Demographic | Details |
|---|---|
| Primary Age | 18-35 years old |
| Sports Fans | College and professional team supporters |
| Students | High school and college demographics |
| Customization Enthusiasts | Personal expression focused consumers |
| Corporate Clients | Promotional product buyers |
Marketing and Distribution Strategy
Hypd employs a multi-channel distribution approach combining direct-to-consumer sales through their website with wholesale partnerships and drop shipping arrangements. Their marketing strategy focuses on social media engagement and the visual appeal of interchangeable designs.
- Direct-to-Consumer: E-commerce website driving primary sales
- Wholesale Partnerships: Traditional retail channels for broader reach
- Drop Shipping: Fanatics, Finish Line, and Target collaborations
- Social Media Focus: Visual content showcasing strap customization
Hypd Deal Outcome
Barbara Corcoran recognized the potential in Hypd’s customization platform and made an aggressive offer that the founders accepted. The deal structure provides both immediate capital and ongoing credit line for growth.
| Deal Component | Details |
|---|---|
| Investor | Barbara Corcoran |
| Cash Investment | $100,000 |
| Credit Line | $250,000 |
| Total Value | $350,000 |
| Equity | 25% |
Hypd Post-Show Update
Following their Shark Tank appearance, Hypd announced a strategic partnership with SnugZ USA in May 2024, expanding into the promotional products industry. The company also rebranded under CEO Marc Herzberger’s leadership, targeting new markets including high schools, youth sports teams, sororities, and corporate groups. Their website remains active on the Shopify platform, continuing to offer customizable recovery slides.
Business Analysis & Lessons
Hypd’s journey demonstrates the importance of clear business focus and understanding market positioning. While the founders had strong industry experience and a patented product, they initially struggled to articulate whether they were in the slides business or customization business. Barbara’s investment focused on the customization aspect, which proved to be the stronger value proposition.
The deal structure with significant credit line reflects both the potential and risks of the business. Entrepreneurs should note how customer acquisition costs became a critical factor for investors, highlighting the need for comprehensive marketing strategies even with innovative products.
- Clear positioning: Essential to define whether you’re selling products or experiences
- Patent communication: Ability to clearly explain patent protection builds investor confidence
- Customer metrics: Understanding acquisition costs is crucial for DTC brands
- Strategic partnerships: Post-show alliances can accelerate market expansion
Pitch Conclusion
This Hypd Shark Tank update showcases how innovative product design combined with strategic investor partnerships can transform a footwear startup. The company’s interchangeable strap technology addresses real consumer needs while their deal with Barbara Corcoran provides the resources needed for scaling. As they expand into new markets beyond sports fans, Hypd demonstrates the power of customization in today’s consumer landscape. Share your thoughts on whether you’d switch to Hypd’s customizable slides for your daily footwear needs.