Knives are a must-have in every kitchen, but once they become dull, they become useless. Traditional knife sharpening services are uncommon, but Knife Aid offers a modern solution through a mail-in service. Mikael Soderlind and Marc Lickfett pitched their idea on Shark Tank and struck a deal with Lori Greiner and Rohan Oza. As of 2024, Knife Aid has a market cap of $2 million.
Founder of Knife Aid
Mikael Soderlind and Marc Lickfett are well-known entrepreneurs from Sweden. While Marc was studying business at the Stockholm School of Economics, Mikael was focusing on starting his own business.
In 1999, Lickfeldt co-founded a web hosting service called Carambole AB. A year later, Soderlind founded Fieldwork Stockholm. Both went on to found several startups each.
Söderlind’s clothing line Happy Socks is perhaps his most successful business pursuit. That’s why he decided to bring the company to the United States. However, the Swedish executive failed to make the company successful in new areas.
Knife Aid Founding
Mark and Mikael knew each other as neighbors, and while having a backyard barbecue one day they noticed a huge demand in the US for a modern way to sharpen kitchen knives.
In the past, there was a group of people called “moletas” who would travel from town to town setting up small shops and repairing dull knives for the locals. However, in modern times, these people are almost impossible to find.
It’s this service that Mark and Mikael wanted to replace. They created a subscription-based startup where subscribers would receive a blade-proof envelope at regular intervals to mail their knives to knife aid organizations, leaving them sharper than ever.
Appeared on Shark Tank
Similar businesses already existed in Sweden, so the entrepreneurs decided to bring the company to the United States in 2019. Since Mikael didn’t want to fail abroad again, he needed help from big investors. They offered Sharks a 15% stake for $400,000, which was a fair price.
The Sharks saw the potential in their unique services, which led to a heated debate. Lori Greiner teamed up with guest Shark Rohan Oza to acquire a 20% stake for $400,000.
Barbara Corcoran teamed up with Kevin O’Leary and proposed $500,000 for 20% of the shares. When the entrepreneurs asked to talk outside the Tank, four sharks ran up to them and desperately pleaded with them to make a deal. In the end, Lori and Rohan won with $500,000 for 20% of the shares.
Knife Aid after Shark Tank
Mark and Mikael’s knife-sharpening startup received a lot of attention after an impressive appearance on Shark Tank, and although they landed a big deal, it reportedly never closed after the cameras stopped rolling.
So they looked for new investors through other means. Lending company TQ Ventures eventually provided funding for their expansion plans. According to their website, it costs $69 to sharpen five knives, and you can sign up for a subscription service. In September 2023, the company opened a local knife sharpening shop in the Conejo Valley.
They expanded their business by offering scissor sharpening and knife repair services. Their annual sales are reported to be around $2 million. Knife Aid is valued at $2 million and is growing well, with over 14,000 followers on Instagram.
Categories: Shark Tank
Source: dut.edu.vn
