HOME / ENTERTAINMENT / TV

'Shark Tank' judges are wowed by $1M-a-year snail mail startup – Mark Cuban says they don’t need any help

Mark Cubansaid, “You get to do what you love, and you’re making a killing. You don’t really need our help to get to the next level."

A company with such impressive yearly revenue that even the ‘Sharks’ were surprised. 38-year-old Ari Siegel, founder of History By Mail, delivered a pitch that had all the ‘Shark Tank’ investors smiling, including Kevin O’Leary. “History by Mail is a subscription service that brings the best of America’s incredible history directly to your door each month,” Siegel said of his company. Subscribers receive an envelope with an immersive experience they can touch and examine, making history feel vivid and exciting. He sought $250,000 for 10% equity in his company. Lori Greiner liked the idea but questioned its scalability in the digital era.

O’Leary also thought it was a unique idea and went straight to numbers. “You have got an idea here. How do I make money?” he asked. “We've sold $3 million in sales in the last 5 years and nine months,” the contestant replied, much to everyone’s surprise. The judges were further taken aback when he revealed his last year’s sale was more than $1 million. “Good for you,” Mark Cuban cheered. “You get to do what you love, and you’re making a killing. You don’t really need our help to get to the next level,” he added. That’s when Siegel admitted he came on the show more to find a strategic partner than to seek funding.

The contestant further explained that with the invested money, he would focus on expansion, from subscription-based gift products to wholesale supply in schools, museums, etc. However, Cuban still wasn’t convinced the company needed outside investment. “You love history, obviously you get to do what you love, and you're making a killing, you don't really need our help to get to the next level. For those reasons, I'm out,” the judge added. O’Leary made an offer of $250,000 for 20% equity, just to make it “interesting” because he was fascinated by the niche product.

Daniel Lubetzky matched the offer and offered Barbara Corcoran to join him on the deal, and she agreed. Without any further arguments or counter-offers, Siegel accepted Lubetzky and Corcoran’s deal. The company targets a niche market with a unique approach. But how did it earn millions in a year without using social media marketing? Moreover, History by Mail would have to compete with snail mail, which allows users to send letters through email. In an interview with CNBC Make It, Siegel explained what makes his company a standout. “It seems like the core value proposition is that we are a physical good, snail mail, in the digital era. That’s why some people, so many people, find it novel,” he said.

The founder started out by sending subscribers documents, “interesting letters that touch on relevant historic themes or that are written by or to historic figures,” as per History By Mail’s website. People had a positive response, and it got the ball rolling. “A lot of feedback we got was, ‘We love this, it’s just too much,’” Siegel revealed. Appearing on ‘Shark Tank’ gave a massive boost to his already impressive sales. The entrepreneur recalled that it was the “best [sales] week” they have ever had.