Clothing is the basic need of human beings, and anyone can venture into the industry. The clothing industry is not a revolutionary or new industry. Instead, the global fashion market has seen a decline of 12.32% in the year 2020. However, many of the players are still making money from this declining yet necessary industry.
The competition in clothing in the industry is so fierce that it seems very difficult to stand out in the crowd. However, many are still successful in positioning themselves as leaders and change initiators. Spergo is also a luxury fashion brand that has been a great success.
Spergo was featured on Shark Tank, an American reality show that is very famous for businesses and startups. In this article, we will discuss everything about Spergo getting onto Shark Tank and what difference they did do after getting investment from the Sharks. So let’s get into it.
A Little About Shark Tank s
The reality show started in 2009, and 13 seasons have been aired to date. Several businesses have changed their fortune by getting the Shark Tank judges on board with their investments.
It’s a franchise of Dragon’s Den that started in Japan under the name Money Tigers in 2001. The investors on a panel of Shark Tank are called Sharks, and after listening to a business pitch and questioning, they decide if to invest in a business or not. However, a general perception that every handshake on the show is executed is wrong.
After the initial willingness of the Sharks, the due diligence, business analysis, and valuation are done. It’s done to see if the business is actually of the worth as claimed by the founders. According to a member of Shark Tank, Kevin O’Leary, around 20% of deals made on the show are not executed due to several problems inside the businesses.
What Is Spergo?
Spergo is a clothing brand that identifies itself as a luxury fashion and clothing brand for men, women, and kids. The brand is unique as it’s inspired by courage, strength, the right mindset, sheer will, and commitments.
The founder of Spergo gave the name to the business by mixing three words: Sports, Heroes, and Go. The idea behind Spergo is a clothing brand for go-getters and people who never give up. The clothing brand deals in street fashion, hoodies, hats, headbands, sweatshirts, socks, and sweatpants.
The most convincing thing about Spergo is its affordable pricing without compromising on the quality of products. The brand is selling through the brick-and-mortar stores in Pentagon City Mall and King of Prussia Mall. Besides, they also have an official website that has sections for men, women, kids, and unisex items.
Founder Of Spergo and His Background
You will be surprised to know that the founder of Spergo brand is a 15-years-old boy. And when he started the brand, his age was only 12 years.
Trey Brown is the founder of Spergo, and he started the brand in Philadelphia, Pennsylvania. The million-dollar brand started with $178, which was the birthday leftover of young Trey. Trey was a sensitive kid and concerned about how crime rates were increasing in the neighborhood. Therefore, he wanted to build a solution to keep kids like him off the streets. And then he was struck with the idea of Spergo.
He used $178 to get the shirts and printing. He sold the first lot directly to the local customers at barbershops. The income from selling his first 16 shirts was reinvested to get more and more shirts. He closed the first-year sales at $40,000. In the year 2019, he was able to generate a revenue of $176,000, and these numbers never get back to a lower figure.
He officially launched his brand in 2018 on Martin Luther King Day. However, the journey of establishing a dream brand was not easy nor smooth for Trey. Due to his young age and eagerness to establish an independent business, he got overworked and had to be hospitalized for four months in 2020.
Personal Life Of Trey Brown
We have discussed the journey of this kid entrepreneur. Let’s have a look at his personal life and early childhood. He is currently pursuing his studies as a 9th-grade student and is committed to giving back to society. He is often seen making contributions at local school drives, feeding the unprivileged, and serving in his hometown church. Besides, the young entrepreneur is a youth speaker who has visited several high schools and inspired hundreds of students.
Trey has been featured on Times Square, recognized by Philadelphia Councilman Kenyatta Johnson, Invesco’s advertising campaign aired on CNN, and a lot more. It’s just the beginning of this star’s journey to find his sky, and he is committed to bringing a bigger change.
Net Worth Of Spergo
According to the CEO of Spergo, the expected sales in the year 2021 were $2 million. When he appeared on the Shark Tank, he valued his business at $3 million and asked the Sharks to invest $300,000 for a 10% stake in his company. However, the deal was locked for $300,000 against a 20% stake of Trey’s brand. Therefore, according to the new valuation, the net worth of Spargo as of 2021 was $1.5 million.
How Does Spergo Work?
Spergo is a streetwear and sportswear brand that has a diversified product line for different audiences in America. When Trey started selling the shirts, he would directly sell them to the local customers. According to her mother, he would go out with his shirts and would stay out until he had sold all of them. However, as the lot sizes increased, the young entrepreneur opted for online selling through store websites. After successful operations for three years, the brand has also launched its brick-and-mortar stores at some locations.
When young Trey Brown visited Shark Tank, he had 89000 followers on Instagram. According to him, he has built his brand repute by collaborating with different celebrities, including GHerbo. Ed Mylett, Eric Thomas, Shaquille O’Neil, Charles Barkley, Meek Mill, Tierra Whack, Sean Combs, and a lot more. According to Trey, his cost for one shirt is around 21.50$, and it’s retailed at $170.
Spergo In Shark Tank
Spergo appeared on Shark Tank during season 13 and episode 5 of the show. Trey Brown, CEO and founder of Spergo, appeared on Shark Tank along with his mother, Sherell Peterson.
He pitched his business and asked for $300 grands against a 10% stake in his company. Before he pitched his business on Shark Tank, he had got a $25,000 grant from Sean ‘Diddy’ Combs on The Ellen DeGeneres Show.
He started his pitch by sharing how he got started with selling the first 16 shirts he had got from his birthday’s leftover money of $178. When Sharks asked him about pricing and product, he told Sharks that the Leo Sweatsuit is manufactured for $21.50. However, the retail price of the suit is $170.
He also told the Sharks that his vision for this brand is to make it a role model for kids and strengthen their belief in doing something good.
What Happened To Spergo After Shark Tank
Lori moved out of the deal to cut it short because she was not the best partner for Trey. Kevin was impressed by Tery, but he was not interested in the clothing industry. Mark said that he doesn’t invest in the clothing industry, but he invests in superstars. Mark offered Trey his ask of $300,000 against a 25% stake in his company.
He also offered Daymond to get with him on this offer. But Daymond didn’t give in. However, he came up with the same offer as Mark. Trey counter offers him $300,000 against a 20% stake in the company. Daymond accepted the offer, and the deal was finalized.
Quick Facts About Spergo
|Industry||Fashion and Clothing|
|Target Audience||Men, Women, Kids|
|Vision Of Business||make it a role model for kids and strengthen their belief in doing something good|
|Net Worth||$1.5 million|
|Ask By Founder||$300,000 for 10%|
|Final Deal||$300,000 for 20%|
We have shared everything about Spergo appearing on Shark Tank and how the young entrepreneur impressed the Sharks on the show. Now you know what happened to Spergo after Shark Tank and how the founder is working to impact the community with the streetwear brand.