Tipsy Elves Shark Tank Update – Shark Tank Season 5
The founders of Tipsy Elves appeared on Shark Tank with their product line of outrageous, ugly Christmas sweaters. What started as a side hustle turned into a booming apparel brand after landing a deal with Robert.
Evan Mendelsohn and Nicklaus Morton brought Tipsy Elves, the iconic and ubiquitous Ugly Christmas sweater, to the Shark Tank Season 5 Episode 12, the 2013 Shark Tank Holiday Special.
The Tipsy Elves’ mission started with a slogan, “not your momma’s Christmas sweater,” and they aren’t kidding. They have an extensive line of ugly Christmas sweaters, from straight-up tacky to downright inappropriate! They also donate $2 for each sweater sale in return for Stand Up To Cancer, so they’re keeping the “Christmas spirit” alive all year round.
Tipsy Elves sells sweaters in over 200 countries, and they boast UK and Canadian websites. All indications point to a very good business model: they claim to sell more ugly Christmas sweaters than anyone in the world, and they are the “official sponsors” of National Ugly Christmas Sweater Day (December 20).
In addition to sweaters, they sell ugly Christmas sweater dresses, pajamas, hats, and other accessories. They sell online at Amazon and from their website. Tipsy Elves is likely looking for Sharks to help them get on retail shelves.
Check out other Shark Tank Season 5 Episodes.
About Tipsy Elves
| Category | Details |
|---|---|
| Business Name | Tipsy Elves |
| Founders | Evan Mendelsohn, Nicklaus Morton |
| Industry | Apparel |
| Product Type | Ugly sweaters, holiday apparel |
| Deal Status | Deal secured with Robert Herjavec |
| Investment Asked | $100,000 for 5% equity |
| Deal Outcome | $100,000 for 10% equity |
Evan and Nick were anything but your typical sweater salesmen. Tired of the endless hunt for the perfect ugly Christmas sweater at thrift shops, they saw a business opportunity. In 2011, they launched the brand Tipsy Elves to design and sell their own outrageous, over-the-top line of festive sweaters. They’ve been spreading holiday cheer (and laughs) ever since.
Tipsy Elves Shark Tank Pitch
Evan and Nick entered Shark Tank seeking $100K for 5% equity in the business. A parade of sweater models came in wearing a variety of sweaters, and the models hand out sweaters and hats to the Sharks.
Mr. Wonderful said, “this stuff is hideous.” They revealed they had over $800K in sales in 2012, with half of those sales coming in from Amazon. Evan said he started the business due to his background in SEO, based on search volume for Christmas sweaters. Nick left his job as a lawyer to help out. They were selling online at that time.
With strong DTC momentum and a mission to go wholesale, the founders were eyeing the next stage of scale. But the Sharks weren’t sure that was a good idea.
What Makes Tipsy Elves Unique?
What makes Tipsy Elves stand out is its fearless approach to fun. Evan and Nick didn’t just create another holiday sweater brand; they built a movement around bold, cheeky, over-the-top designs that turn heads and spark conversations.
From Christmas to Halloween, ski trips to summer parties, they’ve got a loud outfit for every occasion. It’s not just clothing; it’s a vibe, and no one does it quite like Tipsy Elves.
Did Tipsy Elves Get a Deal on Shark Tank?
Mr. Wonderful brought up their valuation, and Mark said he didn’t have a problem with it but wanted to know how they were going to grow. Mark was out.
Lori thought it wasn’t unique enough and went out. Kevin offered $100K for a $2 royalty until he gets his money back and $1 per sweater in perpetuity. Robert liked the fact that Nick left a $175 K per year job to do this business and offered $100K for 10%.
Daymond mulled over the two offers on the table, and a discussion ensued. He was in love with the product and the guys, but he still had reservations – he was out. Mr. Wonderful summarized the offers, and Robert said he wanted to invest in the guys. Robert thought the product would explode, and Evan and Nick accepted.
Robert then asked Mr. Wonderful how many versions of a royalty deal he could develop! In the hall, Evan said, “Our Christmas wish came true today.”
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Tipsy Elves Shark Tank Update: What Happened After Shark Tank?
Since the deal with Robert, Tipsy Elves has seen massive success. Within a year, sales increased to $6 million, making it one of Mr. Herjavec’s best deals on the show. What started as a quirky Christmas sweater brand has expanded into themed apparel for just about every occasion, plus a pet line in partnership with PetSmart.
Update Segment
Tipsy Elves gets an update segment in Shark Tank Season 6, Episode 10. Curiously, Robert does not appear in this episode. In the update, the founders revealed they are projecting $8 million in sales. They had expanded the product line to cover many different holidays, not just Christmas.
They hired several employees and also made a large donation to Toys for Tots, reinforcing their give-back mission. The Tipsy Elves guys said that Shark Tank was the best thing that ever happened to them.
Beyond the Tank
Tipsy Elves had the honor of being featured in the very first episode of Beyond the Tank and returned for multiple Shark Tank updates.
Also, read the full recap of Beyond the Tank Episode 1.
More Updates
In Shark Tank Season 7, Episode 8, another update segment featured Tipsy Elves. They revealed they had introduced a new, high-quality sweater line. Sales had topped $20 million, and they had 20 employees by that time. They also produced sweaters that were featured in the Christmas comedy movie The Night Before.
Over the years, they added to their line by selling Hawaiian shirts, shorts, leggings, ski suits, Halloween costumes, and much more. They are really a clothing brand now, not just a sweater company.
As of August 2022, Tipsy Elves had exceeded $120 million in lifetime sales and annual revenue of $6 million. In October 2023, they ranked as the 8th most successful Shark Tank company, with $317 million in lifetime sales.
Duck Sweaters and New Ventures
The founders made a cameo appearance in Shark Tank Season 15, Episode 10, the Season 15 Holiday Special. They entered the Tank following 4 ducks and introduced their new duck sweaters – sweaters with wings. They were inspired to make them by collaborating on the movie Migration.
Barbara said she doesn’t think it will fly. Mark said it could be the next big thing in holiday sweaters. In what is clearly an advertisement for the movie, Robert said he would be taking his kids to see The Migration. If they love it, he would be in. In July 2024, the duck sweaters were not available for purchase.
Read more posts about Tipsy Elves on the Shark Tank Blog.
- Tipsy Elves vs. The Beard Head
- Tip the Scale with SEO
- Ugly Christmas Sweaters
Where Can You Buy It?
You can grab Tipsy Elves’ Ugly Sweater in time for Christmas. You can also get their other products, including sweaters, jumpsuits, Halloween costumes, and more, on their official website or Amazon. Check out their social media for recent updates on Facebook and Twitter.
Quick Summary
- Evan and Nick turned the ugly Christmas sweater into hilarious designs that stand out at any party.
- Since landing a deal with Robert Herjavec, Tipsy Elves has racked up over $317 million in lifetime sales.
- They’ve gone way beyond Christmas and are now selling gear for Halloween, ski season, and even matching outfits for pets.
Curious about the other businesses that appeared on Shark Tank Season 5 Episode 12, alongside Tipsy Elves? Check out the business updates!
- Cashmere Hair Shark Tank Update
- Hanukkah Tree Topper Shark Tank Update
- Lite-Netics Shark Tank Update
What happen to Robert