It solved the problem for parents who buy toys only for their children to quickly outgrow them. Pope pitched the business on Shark Tank in October 2011 and reportedly made a deal with Kevin O’Leary and Mark Cuban ($200,000 for 35 percent). But not long after the episode aired, Toygaroo filed for Chapter 7 bankruptcy. Despite the initial enthusiasm and investment from the Sharks, ToyGaroo was unable to sustain its business model. This raises questions about the viability of the toy rental market as a whole.

What Happened To Toygaroo After Shark Tank?

It was a less expensive deal, but a similar situation took place with ToyGaroo. The company had huge potential, with both Mark Cuban and Kevin O’Leary attached. However, according to a shareholder of the company, this turned out to be the downfall. Barbara Corcoran states that she was going to offer a lot less, which means that she doesn’t feel like joining in the bid war. Nikki Pope answers the question by saying that she has the right to do whatever she wants with her company.

Aldo Orta: What Happened After Shark Tank

The parents could choose a subscription plan which includes a number of toys they want and when the children get bored with toys they could exchange the old toys for new ones. And if the children love a particular toy they could actually purchase it as well. In this way, the parents will be able to provide the latest and most expensive toys to their kids for a much cheaper price and they will also be able to save some space in their house. Nikki Pope appeared on the Shark Tank, hoping to get an investment from one of the Sharks in order to be able to grow her “toy-renting service”. Before she appeared on the Shark Tank, she already did a soft launch, testing out if people actually were looking for a service like this. The test came out positive, which is why she wanted to scale up her company.

Competitors of Toygaroo:

Conversely, a business that explodes out of the box needs cash to effectively manage that growth until processes can be put in place and the business matures into being able to manage the growth. Reading between the lines, I would say Toygaroo fell into the latter category. The high price surprises the sharks, so Kevin wants to know about enrollment. Nikki tells him that they have a test launch of 500 members, who pay $42 a month for a toy box worth over $200.

• Interestingly, Nikki and her husband do not yet have children of their own, but they aspire to start a family.
• The company couldn’t keep up with shipping costs, and that was matched with O’Leary and Cuban’s inability to add more money to the business.
• The company’s CEO recommends completing the sale, offering her $200,000 for 40% of the business.

Whatever Happened To The ToyGaroo After Shark Tank?

Additionally, if youngsters adore a certain toy, they might purchase it. As the face of the company, Nikki Pope got Toygaroo featured on networks like CNN, ABC, and CNBC. Six months after launching Toygaroo, she appeared on season two of the show, asking for $100,000 for 10% equity. The company started with Nikki and her experience with her relations.

Nikki Pope is a businesswoman from Los Angeles, who was raised in a massive family. Pope studied psychology at Sam Houston State University. As of 2023, Shark Tank had not been canceled and continued to air new seasons. However, show statuses can change, so it’s advisable to check the latest updates for its current status. In fact, like many companies that vie for a spot on “Shark Tank”, ToyGaroo recognized that exposure was just as crucial as securing funding.

He continues by saying that there is a problem, which is that Nikki Pope doesn’t yet have a million dollar company, but she is asking him to pay her as if it is a million dollar company. Nikki Pope answers the question by saying that there is not another company that is doing what Toygaroo is doing, which means that there is currently no competition. Daymond John has a poor track record of dealing with people who are not in control of the company and exits. Additionally, after researching, I discovered that the Toygaroo website toygaroo domain name and brand name had been sold, indicating that the company had ceased operations.

Nikki mentioned that a common household spends $1200 to $1500 yearly on toys. This service would also help in managing the storage and space in homes which is usually taken by toys. If people like a particular toy and want to keep it, they also had an option where they could actually purchase it.

Who is the Founder of Toygaroo?

Enter Toygaroo, a subscription-based toy rental service that delivers toys right to your doorstep. The company founders pitched their business on Shark Tank with a plan to revolutionize the way parents and kids access toys. Learn more about the story behind Toygaroo, their innovative business model, and their experience on Shark Tank. But due to many reasons like high shipping costs, high inventory costs and after some research, it turned out that people were able to buy toys at a cheaper price in local stores. Due to these reasons, the company went out of business.

• People would sign up for a “toy box” subscription and pick how many toys – 2, 3, 5, whatever the subscription level was.
• With multiple partners involved in the business, it was difficult for the entrepreneurs to form a coherent strategy.
• She refers to her nieces and nephews as “playtime pros,” but the issue is that the children rapidly become bored with their toys.
• It may seem like a good thing, but this was actually the start of their downfall.
• While the idea of the monthly fee might sound expensive, Nikki noted that the average family spends $1,200 to $1,400 per year on toys.

Really it was a matter of contacting the right people – once they heard the idea they were on board. The company was founded by a great group of people based in Los Angeles. They had good marketing experience, but needed the software. I came in, licensing the Filmamora software to them and modifying it as needed – which essentially turned into a re-write of the code. I started out as a musician but after deciding I also like to have food on the table, I got into writing software in the early 90s (yes, I am old). I wrote traditional software – Macintosh applications – in the beginning, but starting in 1996 I got into the fledgling internet.

She explained how this service will be convenient and cheaper compared to actually purchasing the toys. Shark Tank deals often fail to close for various reasons, including due diligence revealing issues with the business, differences in valuation, or the inability to agree on deal terms. Additionally, some entrepreneurs may seek the Sharks’ expertise and exposure without necessarily intending to secure an investment. ToyGaroo had closed its doors after an appearance on Shark Tank.

She’s taking her company to the next level with the new found success. ToyGaroo Entrepreneur Nikki Pope came up with a great idea which created the Netflix of toy rentals. O’Leary’s connections with the toy industry were not paying off – they found themselves seeing toy prices cheaper when purchasing in local stores rather than the wholesale prices they were buying at. In addition to Shark Tank, she also appeared on The Nate Berkis Show, CNN, Saturday Night Live, CNBC, ABC News, Good Morning American and others. It would be difficult to say company went down due to lack of publicity. As with a lot of companies who apply for Shark Tank, they applied for exposure as much as the funding.

It’s terrible that businesses continue to fail, even when they secure funding from the Sharks. Before her appearance on Shark Tank, she conducted a soft launch to determine whether there was a market for this service. Toygaroo intended to offer free shipping to all consumers, and they acquired the first 500 consumers using word-of-mouth promotion at roughly $40 per toy. Nikki Popes left the Shark Tank stage with a deal from Sharks of $200,000 for a 40% stake in Toygaroo. They grilled Nikki on various topics, including how much money she intends to invest in inventories and how much the family will spend annually.