Shark Tank through its episodes has been changing the perception of funding among entrepreneurs. The fortune of getting a chance to promote their company on Shark Tank is a once in a lifetime kind of opportunity. Not only does it ensures that your company and product get seen by more than two million people, it also opens the door to extra funding.
Over the years, many companies have made full use of the opportunity presented by Shark Tank, gaining substantial investments. With the help, and support, of the Shark Tank cast, some contestants have made it big with their ideas. Here are a few of the more successful stories from the Shark Tank.
1. Scrub Daddy
Undoubtedly, Scrub Daddy is the biggest success story in the history of Shark Tank so far. The opportunity to promote his brand on the show turned out to be the life changing experience for Scrub Daddy CEO Aaron Krause. The primary product of Scrub Daddy was a smiley shaped sponge, which got hard in cold water and turned soft when put into hot water. This increased the durability of the product and it could last for more than two months with no harms to health and hygiene. The smiley face shape meant that both sides of the utensil can be washed at one go, one of the biggest pros of the product.
Lori Greiner bought 20% of the equity shares of the company for $200,000 USD. After the funding and efforts of Greiner in marketing, the revenues reached a point never foreseen in the history of this venture. For a company which hardly reached the $ 100,000 USD mark in previous years, the company has brought in a total of more than $ 75 million USD in revenue since. According to the Shark Tank cast, the success story is unmatched.
Smartphones are where the future of the technology lies and when a product which could be used along with smartphone was launched, there was no surprise that it caught attention of more than a single shark. Breathometer made a breathe analyzer which could be used with the smartphone to analyze the oral health of the user. The device was portable and easy to use, thus making it a product destined to succeed.
Five sharks, Mark Cuban, Kevin O’Leary, Daymond John, Hervajec and Greiner invested a total of $650,000 USD for 30% of the equity shares of the company. Ever since the appearance of Charles Yim’s company on Shark Tank, funds have been flowing in at a decent pace. It has received funding of more than $6.5 million ever since its appearance on the prestigious show.
3. Tipsy Elves
An investment which was initially criticized by many of the pundits, Tipsy Elves turned out to be one of the most profitable investments for Shark Robert Herjavec. Tipsy Elves is a company which sales holiday-themed sweater, although before appearing on Shark Tank, it only made Christmas themed sweater. Most of the pundits could not see the potential which the company possessed, but Herjavec had belief in the potential of the company. He thus bought 10% of the equity shares of the company owned by Nic Morton and Evan Mendelhson for $ 100,000 USD. Ever after appearing on the show, the revenue has increased close to 20 times. When the yearly revenue reached around $ 900,000 USD before appearing on the saw, it is closing in on $ 18 million USD mark.
4. Grace and Lace
Melissa and Rick Hinnant’s company Grace and Lace is a fashion brand. It received $ 100,000 USD funding from Barbara Corcoran after its appearance on the show. The revenue is expected to go up by 6.5 times since the appearance on the prestigious show.
5. Ten Thirty-One Productions
Melissa Carbone’s live horror show Ten Thirty-One production earned a funding of $2 million from Mark Cuban for 20% of the shares. The investment has resulted in more than a 5 times bump in the revenue.
6. Wicked Good Cupcake
O’Leary invested $75,000 in royalty in Wicked Good Cupcake, a company which made cupcakes in jars. He received a dollar for each unit sold till he earned back his investment and 50 cents per cake after that. After appearing on the show, the company sells around $400,000 worth of cupcakes per month in comparison to $7,000 per month before appearance.
7. Simple Sugars
Lani Lazzari’s skincare company earned an investment of $100,000 for 33% of the equity shares from Cuban. Ever since appearing on the show, there has been a meteoric rise in the revenues, reaching close to the $3 million mark.
These are some of the most influential success stories of Shark Tank.