'Shark Tank': How Hug Sleep pitch drove sharks into bidding wars and left Robert Herjavec with a bleeding nose
Hug Sleep, a Milwaukee-based sleeping pod company managed to accomplish what most entrepreneurs who appear on 'Shark Tank' can only dream of- instigating a bidding war amongst the sharks. The founders of the company- Matt Mundt, and Angie Cupper, came to the tank seeking $150K for 10%stake in their company but ended up going home with a deal with not one but two sharks, and of course, the satisfaction of watching the sharks fight amongst themselves to get the deal.
Matt explained the inspiration behind coming up with Hug Sleep, during his pitch to the sharks, He revealed that he had a lot of trouble falling asleep, so he tried the latest product in the market that promised to not only enhance the quality of sleep but also help fall asleep- a weighted blanket. Initially, Matt was in love with his new purchase, but eventually, over time, he began seeing the flaws with the design of a weighted blanket. From trapping too much heat and causing the body's temperature to shoot up, and the difficulty of its maintenance, since it cant be washed in a washing machine. So, he drew upon his mechanical engineering background to come up with a solution.
He then designed Hug Sleep, a comfortable sleeping-pod like a blanket which relies on compression rather than weight, to provide comfort and a soothing sleeping experience. He explained how sleeping with Hug Sleep simulates a feeling of being hugged due to the snuggly fit that comes because of the compression. Robert Herjavec was more than excited to try out Hug Sleep. He excitedly jumped into it and began exploring how it worked. While trying to get out of it, he tried jumping off the bed and landed face down on the floor, thus hurting his nose. Despite the bleeding nose, Robert couldn't stop raving about how cozy and comfortable the Hug Sleep blanket was.
Before Daymond John made an offer, he asked the entrepreneurs why they were seeking the money. Angie explained that they were seeking the money to purchase the inventory/ She then also revealed that their company was bootstrapped and they began with $2500. All the sharks were impressed on hearing about the bootstrap aspect, Daymond jumped in with an offer of $150K for 20%. Kevin O'Leary and Lori Greiner too jumped in with their offers of $150K for a 15% stake.
When the sharks began asking the entrepreneurs if they were willing to accept any offer, Angie declares that she has something else to add. Angie shares how they are looking for an investor who shares the same passion as them towards the product and all that it is capable of doing. She then reveals how her mother used to always tuck her into bed. Unfortunately, Angie lost her mother to suicide, when she was just 17. Since then she has thrown all her energy into helping people and studied psychology to be able to do that. She also vouches for how Hug Sleep can truly help a person feel calm and relaxed.
There wasn't a single dry eye in the room after Angie shared her tragic personal story. Mark Cuban expressed his sympathy and revealed that a few members of his family have sensory issues, so he understands the value and potential of Hug Sleep. So, he gives the entrepreneurs two offers and gives them the option of picking whichever they are comfortable with. The first offer was $150K for 10%, just as they had asked for. The second offer was $300K for 20%, just so Mark can be more personally invested in the company and the product. Lori too expresses her interest and says she also wants to make an offer for $300K for a 20% stake. Mark suggests teaming up and declares that Lori and he were making a combined offer for $300K for a 20% stake.
The other sharks weren't pleased with the new partnership between Mark and Lori, so they all team up and make the same offer of $300K for a 20% stake, and point out how three sharks are better than two sharks, Robert also jokes about being the only shark to shed his blood for the product. Matt and Angie were flattered when they realized that all the sharks had made their offers, and think for a moment before zeroing in on making the deal with Mark and Lori. Both the sharks and the entrepreneurs were extremely happy with the deal.
'Shark Tank' Season 12 airs every Friday at 8/7c only on ABC.
