Angel Shave Club, a subscription-based razor service designed exclusively for women, was introduced to the Sharks by Iskra Tsenkova and Brian Archambo in Season 10 of Shark Tank. Their goal was to secure a $300,000 investment in exchange for 10% equity, valuing the company at $3 million. Their pitch highlighted the need for a dedicated women’s shaving club, inspired by Iskra’s personal experience of mistaking her razor for her husband’s.
Angel Shave Club Net Worth
Angel Shave Club was valued at $3 million during their Shark Tank pitch. However, after receiving a $200,000 investment from Quake Capital and facing operational challenges, the company eventually ceased operations in May 2020. While no official net worth is available post-closure, the business’s financial struggles ultimately led to its downfall.
Key Takeaways
- Industry Disruption Requires More Than a Great Idea – While Angel Shave Club identified a clear market gap, competition from larger brands made long-term growth difficult.
- Subscription Model Challenges – Retaining customers beyond four to six billing cycles was a key challenge.
- Investor Support Isn’t a Guarantee of Success – Despite post-Shark Tank funding, external factors like the pandemic affected the business.
- Brand Differentiation is Essential – Competing with established brands required strong branding and customer loyalty.
- Scalability and Supply Chain Management Matter – Operational difficulties were a concern for the Sharks and ultimately impacted growth potential.
Company Overview
| Category | Details |
|---|---|
| Name | Angel Shave Club |
| Founders | Iskra Tsenkova & Brian Archambo |
| Industry | Personal Care |
| Product | Subscription razor service for women |
| Founded | 2016 |
| Funding | Self-funded, later received $200,000 from Quake Capital |
| Investment Ask | $300,000 |
| Equity Offered | 10% |
| Valuation | $3,000,000 |
| Sales Before Shark Tank | $390,000 in the previous year |
The Angel Shave Club Concept
Angel Shave Club was created to provide high-quality razors specifically designed for women. The blades, available in soft pastel colors, were offered on a subscription basis, shipped every two or four months. Alongside razors, the company also sold shaving cream and other related accessories.
Inspired by the success of Dollar Shave Club, which revolutionized the men’s shaving industry with affordable, convenient home deliveries, Angel Shave Club sought to replicate this model for women. At around $2 per blade, the service aimed to challenge the overpriced women’s shaving market while addressing gender-based pricing disparities.
Shark Tank Pitch Recap
During their Shark Tank pitch, Iskra and Brian showcased their product and business model, emphasizing their market differentiation. Despite reporting $390,000 in sales over the past year, they faced concerns from the Sharks, including:
- Competition from Established Brands – The Sharks worried that major players like Gillette or other subscription-based services could quickly adopt a similar model, making it difficult for Angel Shave Club to compete.
- Supply Chain Issues – Questions arose about the company’s ability to scale and manage logistics effectively.
- Customer Retention (Churn Rate) – With customers averaging four to six billing cycles, the business model raised concerns about long-term retention and sustainability.
- High Valuation Concerns – The Sharks found the $3 million valuation too ambitious given the business’s revenue and challenges.
Did Angel Shave Club Secure a Deal?
Despite their passionate pitch, Angel Shave Club left Shark Tank without securing an investment. The combination of market risks, scalability concerns, and valuation deterred the Sharks from making an offer.
Post-Shark Tank Update
Although they didn’t land a deal on Shark Tank, Angel Shave Club later received a $200,000 investment from Quake Capital. The company was accepted into Quake’s business accelerator program, which is known for supporting female-founded startups. Anthony Kelani, Managing Partner at Quake Capital, expressed enthusiasm for working with Iskra, acknowledging the brand’s potential to disrupt the overpriced women’s shaving industry.
The Downfall of Angel Shave Club
Unfortunately, in May 2020, Angel Shave Club ceased operations. The COVID-19 pandemic significantly impacted many small businesses, and Angel Shave Club was no exception. While there were speculations about investor influence on the company’s closure, no concrete evidence supported these claims.
Conclusion
Angel Shave Club had a promising concept and successfully captured attention on Shark Tank. Despite its eventual closure, it served as an innovative attempt to bring affordable and high-quality shaving products to women through a subscription model. While the business ultimately folded, its story remains an important case study on market competition, customer retention, and the challenges of scaling a startup in a competitive industry.
