Shark Tank: Hug Sleep, Animated Lure, The Cereal Killerz Kitchen, and Chirp

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Four businesses came to the Shark Tank in hopes of partnering with a Shark to grow and scale their companies. Hug Sleep, Animated Lure, The Cereal Killerz Kitchen, and Chirp pitched their investment pleas to a sea of impressed Sharks, however, only three of these businesses left the tank with partnerships in place. Veteran Sharks Lori Greiner, Daymond John, Mark Cuban, Robert Herjavec, and Kevin O’Leary pulled out some unusual tactics to gain the favor of a few of the featured companies. Hug Sleep, Animated Lure, and Chirp received unprecedented offers from the Sharks and were successful in their plight to partner with the Sharks.

Hug Sleep Gets an Offer From All 5 Sharks

Husband and wife duo, Matt Mundt and Angie Kupper combined their expertise to develop a lightweight sleep pod that provides a gentle, calming pressure that is therapeutic for a variety of conditions. By providing pressure through compression instead of weight, Hug Sleep is able to help produce comfort and relieve stress. Hug Sleep is a great alternative for weighted blankets as they can cause users to become overheated and can be cumbersome to launder. Angie and Matt are looking for a partner that is as passionate as they are about helping people with anxiety and other physical and emotional conditions that may require deep pressure.

Seeking a Shark willing to invest $150,000 in exchange for 10% of Hug Sleep, Matt and Angie are hoping to use an investment to increase their inventory to better meet the demands of their customers. Over the last 16 months, their sales have been in excess of $490,000 and they believe that with the help of a strategic investor they can reduce their costs as they continue to scale their business. In a unique position in the Shark Tank, all five Sharks extended similar offers to Hug Sleep. In order to combine their power and investment, the Sharks combine their efforts and offers with Daymond, Kevin, and Robert offering a collective $300,000 for 20% equity as well as Mark and Lori partnering to extend the same offer. Matt and Angie elect to partner with Lori Greiner and Mark Cuban.

Animated Lure Snags a Deal With Kevin O’Leary

Lifelong fishermen, Sobhan Sanaee and Kanz Kayfan, have created a technological replacement for traditional fishing bait. Their Animated Lure is a robotic, rechargeable lure that swims on its own to mimic the swim patterns of an actual fish. They came to the Shark Tank in hopes of landing an investment partner who would be willing to invest $325,000 and help them land partnerships with major big box stores, in exchange for 10% equity in Animated Lure.

The Sharks are impressed by their story and that they have $247,000 sales to date. They also carry no debt or additional investors in the company, however, the Sharks are concerned that due to the company’s valuation it will be difficult for them to recoup their investment. Although Daymond is an avid fisherman, he does not see a clear path to getting his capital back in a reasonable timeframe and declines to extend Animated Lure an offer. The only Shark that is willing to take the risk on Animated Lure is Kevin O’Leary. Kevin offers to invest $325,000 in exchange for a royalty of $3 a unit until $1,000,000 is paid back at which time the royalty will drop off but the 10% equity share would remain. After unsuccessfully trying to counter with Kevin, they accept his offer.

The Cereal Killerz Kitchen Leaves The Shark Tank Without a Deal

Jess and Chris Burns are investing their life savings into expanding their cereal bar, The Cereal Killerz Kitchen, in Las Vegas. Their storefront sells a variety of unique treats that are created by combining breakfast cereal favorites. The Sharks are amazed by how delicious their products are and appreciate Jess and Chris as small business owners. They feel that they have the grit and determination that it takes to make a food service company successful during the Covid-19 pandemic. The Sharks also like their backstories and the honesty they display in reference to their pasts and future passions.

The Burns’ are hoping to secure a $125,000 investment in the Shark Tank in exchange for 10% equity in The Cereal Killerz Kitchen. The Sharks are concerned with how much money The Cereal Killerz Kitchen is losing right now and they don’t believe that opening several more locations will help to increase their revenue but rather could cause the Burns to lose their life savings. Because the Sharks feel that it would be very difficult to develop both a brand and a retail business simultaneously, they decide not to invest in The Cereal Killerz Kitchen and Jess and Chris leave the Shark Tank without a deal.

Chirp Partners With Lori Greiner

While the Covid-19 pandemic has not been kind to most businesses, it has been very profitable for Tate Stock’s company, Chirp. By targeting users on social media, Chirp has effectively sold $12,000,000 in their back pain relief product this year. With three different sizes available, the Chirp is designed to fit between your shoulder blades and has a patent-pending spinal canal that helps to stretch back muscles in four ways, providing relief from common, everyday backaches.

The Sharks like Tate’s product and his sales data, but they are shell-shocked when he asks for a $900,000 investment in exchange for 2% equity in Chirp. Although his sales are high, Tate needs help with supplying enough inventory to keep up with the demand that he has been seeing for the product this year. Kevin O’Leary, Robert Herjavec, and Lori Greiner all present partnership offers to Chirp. Tate decides to take Lori’s offer for an investment of $900,000 in exchange or 2.5% equity, however, Tate will have to pay $400,000 back this year and the additional $500,000 next year so that Lori has a clear path for making her investment back. After the investment payment is recouped, Lori will still keep 2.5% equity in Chirp.

What did you think of this episode of Shark Tank? If you were a Shark, which of the four businesses would you have invested in? Are there any of these businesses you definitely would not invest in? Start the conversation in the comments below!

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