Hood Hats Custom Hats Shark Tank Episode Update & Net Worth
Hood Hats Custom Hats Shark Tank Episode Update & Net Worth Hood Hats, a luxury custom hat company founded by Max Nelson specializing in custom hats, appeared on Shark Tank in Season 15, Episode 21 which aired on May 3, 2024. In his pitch, entrepreneur Max Nelson sought $500,000 for 5% equity, valuing the company at $10 million. He showcased his custom luxury ball caps,…
Hood Hats Custom Hats Shark Tank Episode Update & Net Worth
Hood Hats, a luxury custom hat company founded by Max Nelson specializing in custom hats, appeared on Shark Tank in Season 15, Episode 21 which aired on May 3, 2024.
In his pitch, entrepreneur Max Nelson sought $500,000 for 5% equity, valuing the company at $10 million. He showcased his custom luxury ball caps, emphasizing their unique designs that celebrate hometown pride. Key points from the pitch included:
- Lifetime Sales: Max reported $1.9 million in lifetime sales since 2018.
- Sales Growth: Sales increased from $300,000 in 2020 to $508,000 in 2021 and $693,000 in 2022. He projected over $1 million in sales for the filming year, 2023.
- Production Costs: Each hat costs approximately $14 to produce and retails for $90.
Despite the impressive sales figures, the sharks were skeptical about the high valuation and the lack of differentiation from competitors. All sharks ultimately declined to invest, leading Max to leave the tank without a deal.
After appearing on Shark Tank, Hood Hats remained in business and continued to grow. The brand gained significant exposure, leading to increased sales and visibility. Notably, Hood Hats has been worn by celebrities like Ben Affleck, Ryan Reynolds, and Jay Z, enhancing its reputation in the market.
The estimated worth of Hood Hats is around $10 million, based on its valuation during the pitch and its continued growth trajectory.
Today, Hood Hats is still in business and actively sells its custom hats online. The company continues to expand its offerings and has established a strong presence in the market, catering to customers seeking personalized and high-quality headwear.
Hood Hat Shark Tank Full Episode; What Happened at Shark Tank Pitch
When Max Nelson entered the Shark Tank, he was seeking $500,000 for 5% equity in Hood Hat, valuing the company at $10 million. He presented Hood Hat as the creator of the world’s finest luxury ball caps, each designed to reflect the wearer’s hometown with a touch of elegance and nostalgia.
The hats, which can be customized with a variety of luxury fabrics such as corduroy, cashmere, and gabardine, offer a unique way for people to celebrate their roots.
To make his pitch more personal, Max gifted each shark a custom hat featuring their hometown. This gesture was well received, but the sharks quickly turned their attention to the business’s financials and growth potential.
Max shared that Hood Hat had generated $1.9 million in lifetime sales since its inception in 2018, with sales increasing steadily each year:
The financials were a mixed bag:
- Lifetime Sales: $1.9 million since the company’s inception in 2018.
- Annual Sales:
- 2020: Over $300,000
- 2021: $508,000
- 2022: $693,000
- 2023 (Year-to-Date at Filming): On track to surpass $1 million
By 2023, the company was on track to surpass $1 million in sales. Despite these impressive numbers, Max admitted that Hood Hat was not yet profitable, a fact that raised concerns among the sharks.
The sharks questioned the $10 million valuation, especially given the current sales figures and lack of profitability. Mark Cuban was the first to express doubts, stating that the ask was too high given the company’s financials, and he quickly opted out.
Kevin O’Leary also took issue with the valuation, noting that the company’s current state didn’t justify such a high figure.
Michael Rubin, the owner of Lids, a major player in the hat industry, was particularly critical. He questioned how Hood Hat differentiated itself from other luxury hat brands and suggested that his own company could easily replicate and outcompete Hood Hat. This, coupled with his concerns about the valuation, led him to pass on the opportunity.
Lori Greiner and Barbara Corcoran echoed similar sentiments, with Lori citing the competitive nature of the market and Barbara being concerned about the lack of profitability after five years in business.
The sharks expressed several concerns:
- Mark Cuban believed the valuation was too high relative to the company’s financial performance and promptly bowed out.
- Kevin O’Leary echoed concerns about the lofty valuation and exited, albeit with restraint.
- Guest Shark Michael Rubin, owner of Lids, questioned the company’s differentiation and scalability, ultimately deciding not to invest.
- Lori Greiner and Barbara Corcoran both cited market competition and profitability issues as reasons for not investing.
Finally, all the sharks passed on the deal, leaving Max to leave the tank without an investment.
What Happened to Hood Hat After Shark Tank?
Despite not securing a deal on Shark Tank, Hood Hat has continued to thrive. The exposure from the show significantly boosted the brand’s visibility, attracting new customers who were intrigued by the unique combination of luxury and customization. Max leveraged this increased attention to grow the business further, proving that a Shark Tank deal isn’t the only path to success.
Hood Hat gained considerable celebrity attention, with stars like Ben Affleck, Ryan Reynolds, Jay Z, and Zach Braff spotted wearing the brand’s customized hats. This celebrity endorsement added a layer of prestige to the brand, helping it to stand out in the crowded fashion market.
Max continued to build on this momentum by expanding Hood Hat’s product offerings and refining its online presence. The company’s website now offers an even broader range of customization options, allowing customers to design hats that truly reflect their personal style and hometown pride.
How Much Is Hood Hat Worth?
At the time of the Shark Tank pitch, Hood Hat was valued at $10 million based on Max’s request for $500,000 for 5% equity. However, this valuation was met with skepticism from the sharks, who felt it was overly ambitious given the company’s sales and profitability status.
Despite the lack of investment from the sharks, the increased exposure from the show likely boosted the company’s value, though an updated valuation has not been publicly disclosed.
Given the steady growth in sales and the added celebrity endorsements, Hood Hat’s current valuation may have risen, but without external investment or a significant scaling operation, the company’s exact worth remains speculative.
Is Hood Hat Still in Business?
Yes, Hood Hat is still in business and continues to grow. The company has successfully capitalized on the exposure from Shark Tank, expanding its customer base and securing a niche in the luxury custom hat market. Despite not landing a deal, Max Nelson has demonstrated resilience and business acumen by continuing to push Hood Hat forward.
The brand’s focus on high-quality materials and hometown pride has resonated with customers, particularly in a market where personalization is increasingly valued.
Hood Hat’s ability to attract celebrity customers has also contributed to its ongoing success, adding to the brand’s appeal and marketability.
Which Episode Number Was Hood Hat on Shark Tank?
Hood Hat was featured in Episode 21 of Shark Tank Season 15, which aired on 3rd May, 2024. This episode showcased several innovative products, with Hood Hat standing out due to its blend of luxury, customization, and a strong narrative centered around the pride of one’s hometown.
The episode attracted a significant viewership, giving Hood Hat substantial exposure, even though it did not result in a deal.
FAQs
Which Shark invested in Hood Hat?
No shark invested in Hood Hat during its Shark Tank Season 15 appearance. Max Nelson left the tank without securing a deal.
What was the valuation of Hood Hat during Shark Tank?
Hood Hat was valued at $10 million based on Max Nelson’s request for $500,000 for 5% equity, though the sharks did not agree with this valuation.
Did Hood Hat make a deal on Shark Tank?
No, Hood Hat did not secure a deal on Shark Tank. All the sharks passed on the opportunity.
How much does a Hood Hat cost?
Hood Hat caps, made from luxury materials such as Marino Wool, retail for around $90.
Is Hood Hat still in business?
Yes, Hood Hat is still in business and continues to grow, bolstered by increased sales and celebrity endorsements following its Shark Tank appearance.
What is unique about Hood Hat?
Hood Hat specializes in luxury, customizable hats that allow customers to celebrate their hometowns with high-end fabrics and personalized designs.
