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Another aspect of Tangle Pets' value in 2020 was its intellectual property and brand recognition. The founders successfully created a distinct visual identity and scent portfolio that resonated with consumers. The subscription box concept, while not entirely new, was executed in a way that felt personalized and premium. For valuation purposes, brand equity is a critical component of net worth. A strong brand allows a company to command higher prices and fosters customer loyalty that can withstand economic downturns or the entry of cheaper competitors. By 2020, Tangle Pets had likely achieved a level of brand maturity that allowed for consistent revenue streams.
