When ZinePak founders Brittany Hodak and Kim Kaupe stepped into the Shark Tank, they had already built a $3 million company without any outside funding. Their unique product - a package combining CDs from artists like Katy Perry and Brad Paisley with glossy magazines, interviews, and merchandise - had caught Walmart's attention, landing them an exclusive distribution deal.
When "Mr. Wonderful" Kevin O'Leary tried to challenge their business model, Hodak stood her ground with cold, hard facts.
"He tried to be snarky right out of the gate, but we kind of put him in his place by knowing our stats," Hodak recalled.
Adding:
"I think we earned his respect, and he became almost an advocate. So he really was wonderful to us after the initial comments he made."
The transformation from skeptic to supporter wasn't just good TV - it marked a defining moment for two entrepreneurs who made it onto Inc.'s 35 Under 35 list as the only fully self-funded founders.
What happened during ZinePak’s Shark Tank pitch?
For Hodak and Kaupe, appearing on Shark Tank wasn't just about getting lucky. They had done their homework - extensively.
"I'd watched every episode, read literally hundreds of articles, both by the sharks and former contestants, and read biographies by each of the sharks," Hodak shared.
Also commenting:
"I also knew ZinePak's numbers cold."
Kaupe took a different approach to mental preparation. "I used two tactics before taping Shark Tank," she explained.
"The first was putting myself in uncomfortable situations over and over again, whether it was taking a brand-new class at the gym and positioning myself in the front, or striking up a conversation when I would normally pretend to be invisible."
Her second strategy involved using Andy Puddicombe's Headspace meditation app to find calm amid chaos.
Walking into the Shark Tank, the founders asked for $725,000 for 10 percent of their company. The valuation raised eyebrows, but their preparation paid off when O'Leary questioned their Walmart exclusivity deal. They explained that in the music industry, exclusives were standard practice, and Walmart's music sales exceeded its next three competitors combined.
While Shark Tank's Mark Cuban opted out, citing "desperation" in the declining physical CD market, the remaining sharks showed strong interest. O'Leary offered $725,000 for 30 percent, Daymond John proposed 25 percent for the same amount, and Robert Herjavec and Lori Greiner joined forces with a 20 percent equity offer.
The final offer and resolution
Despite the multiple offers, the founders weren't ready to settle. "We didn't want to do a deal that valued our company at less than $5 million," Hodak explained.
"We know how valuable our company is, and we only want to work with people who share that vision. It was about finding the right partner, not just a partner."
Their confidence led them to counter Herjavec and Greiner's offer, requesting 14 percent equity instead. The parties eventually met in the middle at 17.5 percent.
The choice of Herjavec and Greiner as partners wasn't random. "There are superfans for everything, and we'll need help growing into other verticals," Kaupe explained. She highlighted Greiner's connections with QVC and Bed Bath & Beyond, while Herjavec brought valuable relationships in sports, particularly with NASCAR and soccer.
The deal's aftermath beyond what was aired on Shark Tank remained under wraps due to confidentiality agreements, but Kaupe offered some insight into the process.
"There's a ton of negotiation after you leave the show," she revealed.
Explaining further:
"The sharks don't know you before you go into the take, so it's kind of like an arranged marriage where you meet at the altar. Afterwards, you need the time to get to know everyone on a deeper level and understand how you can work together."
For ZinePak, the Shark Tank experience proved that preparation, confidence, and knowing your worth could turn even the most skeptical shark into a believer. After the show, they rebranded as The Superfan Company.
Shark Tank Season 16, Episode 11, is set to air on ABC on February 7, 2025.
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