Purse Case - Shark Tank Update

Kelly Coughlan and Jenn Deese, successful LA publicists from Melrose PR who specialized in health, beauty, travel, hospitality, fashion, and consumer products, appeared on Shark Tank Season 5 seeking $55,000 for 12% equity in their innovative PurseCase product that combined smartphone protection with essential storage functionality. Their stylish phone case doubled as a tiny purse, featuring a chain handle for carrying, a built-in lipstick mirror, and secure pockets for credit cards, cash, and other small essentials, solving the common problem of women needing to carry large purses when they only wanted to bring a few items while keeping their phone accessible.

The entrepreneurs had already demonstrated strong market validation through a successful Kickstarter campaign that raised $35,114 against a $35,000 goal, using the crowdfunding platform as both a pre-order mechanism and proof of concept while funding their first production run. In just three months since launch, they had already generated $30,000 in pre-orders and were projecting ambitious first-year sales of $240,000, with impressive profit margins of 88% for direct website sales and 71% for retail distribution.

The phone cases were manufactured for $4.42 each and retailed for $38, demonstrating a sustainable business model, while the entrepreneurs had secured a $1 million line of credit from a manufacturer in exchange for 15% equity, showing confidence from industry partners in their product's commercial potential. PurseCase was designed to accommodate both iPhone and Samsung Galaxy devices, with plans to expand to additional phone models, and was available in various bright colors to appeal to fashion-conscious consumers who wanted both functionality and style in their mobile accessories.

Kelly and Jenn accepted a deal with Lori Greiner for $55,000 in exchange for 15% equity after rejecting Kevin O'Leary's royalty-based offer, with Lori's extensive QVC experience selling similar products making her the ideal partner for scaling their phone case accessory business. The partnership proved immediately successful, as Lori leveraged her QVC platform to drive substantial sales while also helping secure distribution deals with major retailers including Staples, launching PurseCase into the international technology accessories market.

Following their Shark Tank appearance, the company experienced rapid growth that reached over $400,000 in sales, but the sudden expansion created significant stress on the business partnership between Kelly and Jenn, ultimately leading to relationship difficulties that affected their ability to manage the company effectively. The growth pressures caused Jenn to step away from the company, with Lori Greiner and Kelly Coughlan buying out her shares, allowing the business to continue under Kelly's leadership with continued support from their Shark Tank investor.

PurseCase was featured in a segment on Beyond the Tank Season 2 Episode 11, where Kelly discussed how the company was ready to get back on track after the partnership transition, demonstrating resilience in overcoming internal business challenges.

However, despite achieving peak annual revenues of approximately $5 million and being available through their website and retail partners, the company ultimately ceased operations around 2021, with a message on their Facebook page announcing they would undergo reorganization before returning in 2022, but as of 2023, the website remains inactive and Kelly no longer lists PurseCase on her LinkedIn profile, indicating the business has permanently closed.