Slumberpod is a product out of Atlanta, GA, that functions as a blackout tent to help kids (and hopefully parents, too) sleep through the night.
Pitched by a mother-daughter pair of entrepreneurs, they said that they were inspired to create the Slumberpod when traveling because kids often share the room with their parents and, sometimes, the excitement of travel and the fact of being in a new place, can often cause problems sleeping. Especially for babies. So they created a tent that can go over a travel crib to provide total darkness where ever they might be.
Made of breathable fabric and weighing less than six pounds, the Slumberpod can be folded up to fit within carry-on luggage. It also takes less than two minutes to break down.
Unfortunately for the entrepreneurs, the baby they use during the demonstration won't stop crying even when put into the Slumberpod and only becomes civil when they take it out of the tent.
The Slumberpod launched in the August previous to when the episode aired and has done $556,000 in business since. It has a landed cost of $56 per unit and retails for $149.99. The company became profitable in the most recent February and carries no debt.
Making A Deal
Lori wonders aloud whether the entrepreneurs should give away part of their business for an investment and, if so, what would be the right amount. But, in the end, she decides that they should hold onto all of it and goes out.
Barbara relates a story where Merrill Lynch once offered her $256,000 for her company but just five years later, she ended up selling it for $66,000,000. The moral, she said, was knowing when to sell your stock. "That being said, I want to take advantage of you," Barbara then went on to say. She offers $400,000 for 25% equity in the business plus a royalty per unit to be named later.
Robert says that he thinks Barbara's offer is a good one and that he'd make a similar one and, for that reason, is out.
Mark adds to the stories about knowing when the right time to sell is. He says that Microsoft began looking into getting into the streaming business and that he originally hoped they might offer on his company Broadcast.com. But, then, a few years later, he sold to Yahoo! for over $5,000,000,000. The moral of his story, apparently being, that they should hold on for a better offer, because he also goes out.
The entrepreneurs, after hearing all of these stories then ask Barbara if she won't just do their original deal of $400,000 in exchange for 20% equity and she agrees meaning that Slumberpod came in and left at the same value plus a shark as a partner which, one would think, can only increase the value of the business.