Katy Mallory knows how hard it is to get children to sleep when they are away from home and out of their own environment. After waking several times through the night with one of her children on a trip to visit her mother, Lou Childs, for the trip to ultimately be cut short because of this sleeping issue, this mother/daughter pair new they had to do something. This is when the SlumberPod was born.
Katy and Lou developed this product together so that parents don’t have to be sleep-deprived and miserable on their trips because their children have a hard time adjusting to a new sleep environment. The SleepPod is a breathable, portable privacy pod that slides over any childhood sleeping surface to provide a dark and cozy environment for your child to fall asleep and stay asleep. This travel item is specifically designed to be lightweight enough to fit into carry-on luggage making it easy for families to pack for trips.
Will the Sharks sleep on this baby slumber solution? #SharkTank
— Shark Tank (@ABCSharkTank) January 6, 2020
Since launching last August, the SleepPod has sold $556,000 with very little marketing efforts. The product has gone viral with moms that have used the product and seen great success. Their posts on Instagram and social media have allowed SlumberPod to have great influencer exposure that has helped to drive their sales. They became profitable in February and are currently debt-free which is very attractive to the Sharks. Because they have had such great success, Katy and Lou are looking for a Shark to help them scale their growth and their manufacturing so that they can keep up with the demand for their product.
SlumberPod came to the Shark Tank seeking a $400,000 financial investment in exchange for 20% equity in the company. The Sharks are impressed by their seemingly overnight success, however, many of them feel that Katy and Lou are doing so well for themselves that they do not need a Shark to partner with. There are a few Sharks that have a differing opinion and do decide to extend them an offer, however. Both Barbara Corcoran and Kevin O’Leary make investment offers to SlumberPod. After carefully considering both offers (Kevin’s a loan with a lower equity share but an interest rate on his investment and Barbara’s a straight equity deal with a contingency that she gets paid back first), the mother and daughter duo decided to counter with Barbara Corcoran and they reach a deal with her. In exchange for $400,000, SlumberPod will give up 20% equity to Barbara.
If you have young kids and you care about sleeping while traveling, you NEED a SlumberPod. https://t.co/efleJZ3Pat<https://t.co/hHlp3GgMAM>. Katy and Lou are the real deal: driven and optimists. My kind of entrepreneurs. pic.twitter.com/0yAu12diXH
— Barbara Corcoran (@BarbaraCorcoran) January 6, 2020
Selling pieces of your business for the immediate cash can actually hurt you in the long run. Stay in the game, remain low, take affordable steps, and you’ll be surprised at what you can do. #Slumberpod #SharkTank
— Daymond John (@TheSharkDaymond) January 6, 2020
What do you think of SlumberPod’s decision to partner with Barbara Corcoran over Kevin O’Leary? Do you think that they made the right decision? Would you invest in this business? Start the conversation in the comments below!
Shark Tank airs on Sundays at 9pm on ABC. Click here for a full synopsis of this episode.