Pitch Introduction
Moonies Shark Tank pitch brought something entirely new to men’s swimwear – cleavage for guys. The founders, Karissa and McKay Winkel, pitched their innovative men’s swimwear featuring a patented window in the back to expose the derriere. This bold concept aimed to bring fun and self-expression to men’s swim fashion.
Business Overview
Product/Service: Moonies offers innovative men’s swimwear with a unique patented window design exposing the backside. Problem It Solves: Traditional men’s swimwear lacks creativity and fun, with decades-old designs remaining unchanged. Target Market: Young, fun-loving men seeking expressive swimwear, particularly in LGBTQ+ communities and beach/volleyball enthusiasts. Unique Selling Proposition (USP): The world’s first patented men’s swimwear with a window exposing posterior cleavage, combining innovation with eco-friendly manufacturing.
| Company Detail | Information |
|---|---|
| Company Name | Moonies |
| Industry | Fitness/Sports/Outdoors |
| Founded | 2022 |
| Location | Holladay, Utah |
| Website | http://www.moonies.co |
About Founder’s
Karissa and McKay Winkel are the innovative founders of Moonies. Both alumni of Brigham Young University, they met while working in New York City. McKay works as a real estate analyst at Boulder Ranch Properties, while Karissa serves as a graphic designer. Their entrepreneurial journey began with a DIY experiment that eventually led to creating a unique product line.
- Met while working in New York City
- Both BYU graduates with diverse professional backgrounds
- McKay works in real estate analysis
- Karissa has graphic design expertise
- Started company in 2022 after failed Kickstarter campaign
Shark’s and Founder’s QnA
Q: Who are the founders of Moonies, and what are they seeking on Shark Tank?
A: Karissa and McKay Winkel are the founders of Moonies. They are seeking $150,000 in exchange for 35% equity in their company, valuing it at approximately $428,571.
Q: What is Moonies, and what makes it unique?
A: Moonies is a men’s swimwear brand offering comfortable swim briefs with a patented cutout in the back, described as “cleavage for guys.” It aims to bring fun, bold, and expressive designs to men’s swimwear, challenging the traditional, “boring” baggy board shorts. The swimwear features a soft waistband, a supportive front pouch, and the patented back cutout.
Q: What are the two styles of Moonies swimwear?
A: Moonies offers two styles: the Open Window, with a distinctive back cutout, and the Closed Window, which has a clear plastic cover over the cutout for more modest coverage. Both are priced at $40–$45 and come in various colors and patterns.
Q: How did the idea for Moonies originate?
A: The idea came 18 years ago during a “Stud of the Lake” Speedo competition at Lake Powell. McKay cut a hole in the back of a Speedo, and Karissa added a clear plastic window, creating a unique, attention-grabbing swimsuit that won the competition.
Q: What is the significance of the patent for Moonies?
A: Moonies secured a design patent for the back cutout less than a month before their Shark Tank appearance. This patent protects their unique design, giving them a competitive edge and potential licensing opportunities.
Q: Can you sell a product before a patent is granted?
A: Yes, you can start selling a product once a patent application is filed with the USPTO, as it provides protection. You don’t need to wait for the patent to be granted, which is beneficial since design patents can take about a year, and utility patents may take 2–2.5 years.
Q: What are the production costs and selling price of Moonies swimwear?
A: Each swimsuit costs $12.50 to produce, or $9 with bulk orders, and sells for $40–$45 on their website, offering a potential profit margin of 77.5%.
Q: What are Moonies’ sales figures?
A: Moonies had sold about $1,000 worth of products before their Shark Tank appearance, as they kept the business quiet until the patent was granted. The episode was their “big launch.”
Q: How does Moonies market its products?
A: Moonies relies on social media for marketing but kept promotion minimal until the patent was secured. After Shark Tank, they saw a significant increase in website traffic, sales, and social media exposure, using platforms like Instagram with hashtags like #cleavageforguys.
Q: What is Moonies’ commitment to sustainability and community?
A: Moonies uses 86% recycled polyester for their swimwear and 100% recycled post-consumer materials for shipping bags. They donate 5% of profits to environmental and LGBTQIA+ causes, emphasizing eco-friendliness and social responsibility.
Q: What feedback did Moonies receive at the beach?
A: When worn at the beach, Moonies caused a commotion, with people requesting selfies and asking where to buy them. One woman expressed interest in purchasing a pair for her husband. However, Lori Greiner noted that interest doesn’t always translate to sales.
Q: What concerns did the Sharks raise about Moonies?
A: The Sharks were concerned about the low sales ($1,000), the niche market size, and the founders’ hustle. Mark Cuban felt the market was small, Daniel Lubetzky questioned their grit, Robert Herjavec saw scaling challenges, and Lori Greiner was skeptical about demand.
Q: What offer did the Sharks make?
A: Kevin O’Leary offered $150,000 for 100% ownership of the patent, intending to pair Moonies with Rounderbum, a men’s apparel brand. The Winkels countered with $150,000 plus a $5 royalty per unit or $500,000 for the patent, but Kevin rejected both, insisting on full control.
Q: Why did the founders decline Kevin’s offer?
A: The Winkels declined because they valued their patent and brand vision, believing Moonies was worth more than $150,000. They wanted a royalty or a higher offer ($500,000) to retain some benefit from future sales. They called Kevin “greedy” for his inflexible terms.
Q: What was the outcome of the Shark Tank pitch?
A: Moonies left without a deal after declining Kevin O’Leary’s offer. However, the Shark Tank exposure led to a significant boost in sales, website traffic, and social media engagement.
Q: What is the estimated net worth of Moonies in 2024?
A: Estimates vary, with one source suggesting $522,000 and another $200,000, based on post-Shark Tank sales growth and visibility.
Q: Why is the patent valuable for Moonies?
A: The design patent protects the unique back cutout, making it a valuable asset for potential licensing or partnerships. Kevin O’Leary’s offer of $150,000 for the patent highlights its worth, despite low initial sales. Securing the patent early provides a strong foundation for the business.
Q: What is the reaction from the IP attorney perspective?
A: The IP attorney, Dave Toney, was initially skeptical but praised the founders for securing a design patent, emphasizing its value. He noted that patents can be obtained for unique designs like Moonies’ cutout and that filing a patent allows sales to begin immediately. He supported their decision to reject Kevin’s offer, suggesting a $3 royalty might have been a better counteroffer.
Q: Is there a market for Moonies’ swimwear?
A: The attorney and Sharks questioned the market size, particularly for a swim brief with a back cutout. While there’s a niche market, possibly among the LGBTQ+ community, its broader appeal is uncertain. The attorney noted that effectiveness depends on sales and reviews, which were limited at $1,000.
Q: How does Moonies’ website reflect their IP protection?
A: The Moonies website highlights the patented design and registered trademark for “Moonies.” The attorney suggested displaying the patent number to deter infringement but noted the site is straightforward and effectively showcases the brand.
Q: What are the future plans for Moonies?
A: Moonies continues to focus on online sales, expanding designs, and leveraging social media. They aim to increase brand awareness and explore retail partnerships while maintaining their commitment to sustainability and supporting LGBTQ+ and environmental causes.
Key Stats & Financials
The Moonies founders presented their financials and business metrics during their Shark Tank pitch. Despite limited sales, they demonstrated clear understanding of their costs and market positioning. Their financial presentation showed realistic projections and reasonable pricing strategies for their innovative product.
- Sales: Current revenue figures at time of pitch – $1,000
- Margins: Profit margins and cost structure – $40 retail, $12-25 cost, $9 bulk cost
- Valuation: What the entrepreneur valued their company at – $428,571
- Investment Request: Amount sought and equity offered – $150,000 for 35%
- Use of Funds: How the entrepreneur planned to use the investment – Not specified in detail
| Financial Metric | Amount |
|---|---|
| Asking Amount | $150,000 |
| Equity Offered | 35% |
| Company Valuation | $428,571 |
| Retail Price | $40 |
| Current Sales | $1,000 |
Business Potential and TAM
Moonies addressed a unique market gap in men’s swimwear with their innovative window design. The total addressable market includes recreational swimmers, beachgoers, LGBTQ+ communities, and those seeking expressive fashion options. Their product appeals to men looking for fun and unconventional swimwear that challenges traditional designs.
Moonies: Ideal Target Audience & Demographics
| Demographic | Details |
|---|---|
| Age Group | 18-45 years old |
| Gender | Male-focused with potential female gifting market |
| Income Level | Middle to upper-middle class |
| Lifestyle | Active, social, fashion-forward |
| Geography | Coastal regions, resort areas, college towns |
Marketing and Distribution Strategy
Moonies leveraged social media marketing and direct-to-consumer sales through their website. Their strategy focused on building brand awareness through viral content and community engagement. The founders emphasized word-of-mouth marketing and experiential marketing by wearing their products in public to generate interest and feedback.
- Primary Sales Channel: Direct-to-consumer via moonies.co website
- Social Media Marketing: Instagram, TikTok, and beach community engagement
- Word-of-Mouth Strategy: Public demonstrations and beach testing
- Future Expansion: Potential retail partnerships and wholesale opportunities
Moonies Deal Outcome
Kevin O’Leary made an offer to purchase 100% of Moonies for $150,000, which the founders rejected. The founders demonstrated strong conviction in their product and business vision by turning down what could have been a significant financial opportunity. No deal was ultimately made with any of the Sharks.
| Shark | Offer Details |
|---|---|
| Kevin O’Leary | 100% ownership for $150,000 |
| Outcome | Offer rejected by founders |
| Final Result | No deal made |
| Reason | Founders wanted to maintain control |
Moonies Post-Show Update
Following their Shark Tank appearance, Moonies continued to operate independently and build their brand. The company maintained its focus on direct-to-consumer sales and community engagement. Their unique product offering and viral nature of their concept helped maintain public interest even without a Shark Tank investment.
Business Analysis & Lessons
The Moonies pitch demonstrated both strengths and weaknesses in entrepreneurial execution. While their product concept was unique and patentable, they faced challenges in articulating their market size and demonstrating significant traction. The founders showed strong conviction in their product but may have benefited from more robust business development strategies.
Their decision to walk away from Kevin O’Leary’s offer highlighted their commitment to maintaining control over their intellectual property. However, they might have missed an opportunity to leverage his business expertise and distribution network. The pitch serves as a case study in the importance of balancing conviction with strategic flexibility.
- Product Innovation: Successfully patented a unique concept
- Market Validation: Limited sales and customer feedback
- Business Acumen: Strong IP protection but limited growth metrics
- Negotiation Skills: Maintained control but potentially missed opportunity
Conclusion
Moonies brought a truly unique product to Shark Tank that captured attention and sparked conversation. Their patented window design represents genuine innovation in men’s swimwear, even if market acceptance remains to be fully proven. The founders demonstrated strong conviction in their product and made strategic decisions to protect their intellectual property and maintain business control.
While no deal was made, Moonies’ appearance on Shark Tank provided valuable exposure for their brand. The episode highlighted the importance of intellectual property protection and the potential value of even seemingly unconventional product concepts. Their story continues to resonate with audiences interested in innovation and entrepreneurship.