Summary
Highlights
Jen Harper, an Ojibwe Canadian woman, introduces her company, Cheekbone Beauty Cosmetics Inc., to the Dragons, seeking $100,000 for 20% equity. She explains that the idea for her unique cosmetics brand came to her in a life-changing dream in 2015, envisioning happy indigenous girls with rosy cheeks and lip gloss. Her goal is to create a business that honors her grandmother, a residential school survivor, and empowers indigenous youth.
Cheekbone Beauty is a digitally native, direct-to-consumer brand, emphasizing cultural appropriateness, inclusivity, and relatability. The star product is liquid matte lipstick, with shades named after strong and inspirational indigenous women like Autumn Peltier and Ashley Callingbull. The brand aims to help indigenous youth see themselves represented in the beauty industry and donates 10% of its profits to the First Nation Child and Family Caring Society, having already donated over $5,000.
Harper clarifies that products are manufactured in Toronto, explaining that starting with $500, she prioritized proving the concept before investing in a manufacturing facility. The company has achieved over $200,000 in sales since its soft launch in late 2016, with zero debt. She tears up while explaining that her ultimate mission is to empower indigenous youth by providing hope and changing the narrative for indigenous people.
The Dragons question Harper on scaling the business in the highly competitive and capital-intensive cosmetic space, particularly on expanding beyond the indigenous market. One Dragon, impressed by her drive, offers $125,000 but for a significant 50% equity stake, citing the need for more capital than initially requested.
Most of the Dragons decline to invest, deeming the business either too early for an equity investment or not a viable company yet due to its strong mission focus. After receiving advice from one Dragon not to give up too much equity, Harper counters the sole offer with $125,000 for 30%. The Dragon holds firm at 50% due to the perceived valuation and work involved. Ultimately, Jen Harper makes the difficult decision to decline the offer, unwilling to give up such a large portion of her company, reaffirming her dedication to building the brand on her own terms.