It has been 7 years since American TV series, Shark Tank was brought to our screens and while the uniqueness of the shows format and the array of vivid judges are one of the reasons to watch, another is the pitch by the contestants. We look at some of the biggest success stories to come out of the show, following their recent win at the 68th Primetime Emmy’s for Outstanding Structured Reality Program.
Pitched in Season 5, founder and CEO of Breathometer, Charles Michael created history on the show with getting all five sharks investing in his business. The breathalyser attaches to your smartphone and uses a sensor to read their blood alcohol levels.
Initially looking for $250, 000 in exchange for 10% equity in his firm, Charles walked away with a total $1 million investment and gave away 30% of equity. After negotiations with all five sharks, Breathometer’s equity was handed to Mark Cuban who got 15% of the company and pitched in $500,000 with the remaining sharks splitting the other $500 000 and another 15% among themselves. The business now is redirecting its vision from targeting the alcohol industry to the oral health industry.
Pitched in Season 4, Lori Greiner nabbed what is being crowned as Shark Tank’s most successful company. Two and a half years since founder Aaron Krause pitched Scrub Daddy to the sharks, the company sold more than 10 million units and made over $US50 million in sales. The unique scrub technology which can clean both sides of utensils in one go and transform from being a soft sponge to a hard scrub being able to clean surfaces without leaving scratches has become a phenomena in American markets.
Unlikely success story from Season 5, was for two college grads who co-founded ugly Christmas sweater company, Tipsy Elves which became one of Robert Herjavec’s most successful investments. After accidentally discovering through his search engine optimising job that there was a high demand for Christmas sweaters in the market, the two came up with the idea behind Tipsy Elves: that the sweaters were made by elves who were actually tipsy and a little drunk. Seeking $100, 000 in exchange for 5% stake but eventually giving up 10% stake in their company, co-founders, Evan Mendelson and Nick Morton expanded their product line and are en route to make $15 million this coming year in sales.
Wicked Good Cupcakes
Dubbed the most phenomenal investment made, Wicked Good Cupcakes is one of those business’s that has a simple but effective premise. Vowing to never use a mix the company went from making $350, 000 in sales to $8 million, they grew by 600% in their first year. The mum and daughter duo offer a freshly baked cupcake delivered in a crafty jar appealing to practically everyone. The company is now expanding into the gluten-free market and are able to make unique baked goods in jars personalised for any occasion which included Shark, Kevin O’Leary’s own wedding.
Entering the tank in Season 3, husband and wife team, Brian and Julie Whiteman presented, GroveBook which was a digital photo subscription service. The company grew its business to 500,000 paid subscribers post Shark Tank. Through their app they are able to allow users to print photos from their iPhone or Android which get turned into 4.5″ x 6.5″ photo books shipped out for $2.99 per month. The company has now been bought by Shutterfly for a massive $14.5 million, allowing them to improve their print quality, costs and overall efficiency.