Cozy Bug Net Worth
The Cozy Bug is a Los Angeles-based fashion label that makes sundresses from pillowcases. Aly Lessor founded the company in 2012. It was featured on Shark Tank in October 2012 and caused a fight between Daymond and Lori Greiner. Daymond John offered a $50k check for 30 percent of the company, and Cosset Lessor opted to go with Daymond.
Shark Tank investors were presented with the idea by Aly Lessor, founder of the company. In return for a 25% stake in her company, she was looking for $50,000. Daymond John offered to invest $50,000 for her and give her a stake in the company. In the end, the Sharks accepted her proposal and Cozy Bug was valued at $166,500. She has received the funding she needs to grow her business and reach more women.
Aly came to the Shark Tank pitching a deal for $50K for 25% of the company. The cost of a Cozy Bug dress is only $6, and they sell for $28 to $40, but Aly also sells accessories and bags. Robert and Mark agree that Aly should make dresses and not accessories. However, they like the idea. Robert doesn’t like fashion. However, Mr. Wonderful offers 50K in exchange for no equity and offers to pay her $2 royalty per dress until he repays her. The deal is struck and Aly leaves the Shark Tank with the cash.
Lessor, who is married to the founder of the Cozy Bug company, has a net worth of $45k. The company has made over $30k in the past thirty days, but it needs more funding to expand and create jobs for women in need. And to reach these goals, Lessor is planning to pitch the company to big retailers like Amazon and QVC. If the Sharks like her idea, she could achieve a fast track to success and a higher net worth.
Kevin offered a royalty, not an equity stake, unlike Daymond and Lori. Although it might seem risky, the deal does not involve any dilution. Moreover, Cozy Bug will grow through wholesale distribution. Cozy Bug dresses are sold at a fraction of the cost of comparable brands. They can be purchased for as low as $6-$40 per piece. In addition, once the company scales, its manufacturing costs can be cut by 50%, which gives the company a profit margin of $3-7 before overhead.
Cozy Bug sells their dresses online and sometimes sells items through popular online marketplaces such as Zulily. However, the company didn’t have much customer hype following the Shark Tank episode, and their social media accounts were largely quiet. Hence, their net worth is uncertain. Despite the doubts of investors, the company has been able to grow its business. This is a key factor contributing to Cozy Bug’s success.