Samantha Coxe, founder and CEO of Flaus, hugging guest investor Candace Nelson on ABC’s “Shark Tank.
Samantha Coxe's business idea came from a relatable experience: lying to her dentist about flossing regularly.
After her lack of flossing resulted in getting more than 10 cavities filled, the now-32-year-old former corporate attorney left her career in 2021 to launch Flaus, the "world's first electric flosser," she told investors on Friday's episode of ABC's "Shark Tank."
Coxe sought $250,000 for 5% of her company, which brought in "about $900,000 in sales" over the 12 months prior to filming, she said. She wanted the funding to help grow her company into an "oral beauty" brand, hopefully ending up in stores like Sephora and Ulta, she added.
"It's just like your electric toothbrush," said Coxe. "Simply snap on a fresh, recyclable floss head, power it up and select your favorite speed setting of up to 18,000 sonic vibrations per minute. Then, let Flaus work its magic."
The show's investor judges tried out the Flaus flosser, calling it "cool" and complimenting its peppermint flavor — but they wanted to learn more about the numbers.
"Customers will buy the kit up front for $99. It costs us about $10 to make," Coxe told them. "Every three months, customers will receive a little baggie of 90 floss heads [if they subscribe]... The subscription is $15 every three months or $5 a month."
Money Report
Flaus was projected to become profitable in 2024, she noted. Right now, it's built for adults — but Coxe said a version for kids is "the next product we're coming out with."
Negotiating with the Sharks
Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly Chicago Catch-Up newsletter here.
Coxe said Flaus had raised more than $3.5 million "over the last two and a half years," but she'd still grown her business without any PR or publicity, to that point.
Mark Cuban declined to put an offer on the table, saying the industry was out of his wheelhouse. Lori Greiner also opted out, saying she was loyal to her traditional floss picks. But three investors decided to extend Coxe offers:
- Kevin O'Leary: $250,000 for 5% equity + 2.50 royalty until he makes back $750,000
- Daymond John: $250,000 for 10% equity
- Candace Nelson: $250,000 for 8% equity
After some back and forth, Coxe decided to partner with Nelson, who said her investment would come with both mentorship and friendship.
"I am going to give you operational support, strategic support, [and] emotional support," Nelson said. "And I am finally going to get my kids to floss their teeth."
"To hear Candace say she was betting on me really meant the world," said Coxe. "To have someone recognize the passion that I had for building this company was extremely validating."
Disclosure: CNBC owns the exclusive off-network cable rights to "Shark Tank."
Want to make extra money outside of your day job? Sign up for CNBC's new online course How to Earn Passive Income Online to learn about common passive income streams, tips to get started and real-life success stories. CNBC Make It readers can use special discount code CNBC40 to get 40% off through 8/15/24.
Plus, sign up for CNBC Make It's newsletter to get tips and tricks for success at work, with money and in life.
