Nayeem Hussain and Ryan Fant are the third team on Shark Tank’s college enterpreneur episode. Like other teams on the episode, they want to sell the investors on a product they designed together in college. Hussain and Fant’s company is Keen Home, and their product is the Keen Vent.
It’s an air vent that is wirelessly connected, and opens and closes to ‘intelligently’ direct air throughout the home. It connects automatically to the internet, and can be controlled via your smartphone. The team says that the average consumer spends more on heating and cooling than any other aspect of their electric bill, and that this much power shouldn’t be controlled by a single central thermostat, when you could, instead, control each vent as needed.
Hussain and Fant say that in tests, households have recouped their costs through energy savings over a two-year period, saving more than 10% of their energy bills after installing the vents. They’re around $80 apiece, and the test houses had between four and six installed each.
The team has invested $50k themselves, raised $1.2 million through the Techstars Accelerator Program, at the beginning of the year, and closed a seed round of $1.5 million in May. They have pre-sold 35,000 units to Lowe’s.
The offer to the sharks is 10% of the company for a $750k investment.
Mark Cuban was first out of the gate to tell the team that the Keen Vent wasn’t right for Shark Tank. “This is a feature, not a product.” With that, Mark was out.
Lori Greiner was next. She said that the product was too confusing, and that it wouldn’t be easy to get the idea across quickly to a consumer in the aisle of a retail store, and she, too, was out.
Kevin O’Leary said his problem was with the financial side. He felt the valuation of the company was too high, and if he was in, it would be a $750k investment for 25% of the company.
Daymond John spoke up next. he’d give $750k for 25%, like Kevin, but he would also seek to match or beat the cost of manufacturing the product, and do so, in order to make money on the manufacturing end as well. He’d also seek to get the vents into big hotel chains.
Robert Herjavec made the third offer. Slightly undercutting Daymond and Kevin, he said he’d give the $750k for 20% equity.
The Keen Home team didn’t seem anxious to jump on any of the sharks’ offers, but Kevin was willing to try a different tact.
His new offer: the $750k as a loan, at 8.5% interest, and also take the 10% equity. Lori, despite previously saying she was out, offered to go half-and-half with Kevin on the loan offer.
Robert was willing to go lower. He’d give the $750k for 13%.
Daymond was still interested too. He made a new offer: $750k for 20% equity, matching Robert’s earlier offer.
The Keen Home team responded that they were interested in a partner who was ‘all in,’ and on that note, accepted Robert’s offer.
Final Deal: Robert Herjavec invested $750k in [company]for a 13% stake.
Photo: Keen Home