ChessUp Update | Shark Tank Season 14

Adam Roush and Jeff Wigh conceived the idea for ChessUp when Jeff faced difficulty teaching his daughter to play chess. This challenge revealed a lack of accessible tools that could make learning chess intuitive and engaging for beginners. The frustration of trying to explain the game without visual aids led them to create an interactive smart chessboard that combines ease of learning with advanced features for experienced players. Let’s see if they will get a deal with any of the sharks in our ChessUp update and pitch recap.

If you’re short on time, here’s a quick overview of what happened to ChessUp after Shark Tank.

Jeff and Adam pitched ChessUp on Shark Tank Season 14, seeking $300,000 for 5% equity. After their pitch, they landed a deal with Lori Greiner for $300,000 for 5% equity plus a 3% royalty.

In terms of a ChessUp update, the company sold out shortly after airing. Since Shark Tank, annual revenue has grown to around $1.4 million.

Shark	Result
Lori Greiner	Accepted offer of $300,000 for 5% equity plus a 3% royalty
Kevin O’Leary	No offer
Robert Herjavec	No offer
Barbara Corcoran	No offer
Mark Cuban	No offer

Shark Tank ChessUp Pitch

• Entrepreneurs: Jeff Wigh and Adam Roush
• Business: Chess Game with AI Technology
• Ask: $300,000 for 5% equity
• Result: $300,000 for 5% equity plus a 3% royalty
• Shark: Lori Greiner

Jeff and Adam enter Shark Tank with ChessUp, a smart chessboard designed to teach and challenge players of all skill levels.

They sought an investment to scale production and introduce their innovative product to a broader audience of aspiring chess enthusiasts.

To kickstart their business and fund initial production, they raised $1.7 million through a successful Kickstarter campaign.

Despite this early success, ChessUp faced financial hurdles.

One of their previous investors had contributed $392,000 in funding but secured a 3.93% royalty until recovering 1.5 times the investment.

This royalty agreement added strain to the company’s finances as the founders tried to scale operations and meet increasing demand.

ChessUp retails at $399 and costs $120 per unit to produce, which gives them a strong gross margin of about 70%.

Robert Herjavec asks about their sales performance. Jeff and Adam reveal that the company has already generated $400,000 in sales year-to-date.

Lori Greiner wanted to know if the founders were fully committed to ChessUp. Jeff confirmed it was their full-time focus and highlighted their impressive portfolio of over 20 patents.

With a target market of 600 million global chess players, ChessUp aims to revolutionize how players learn and enjoy chess, all while scaling operations to meet demand.

However, not all the sharks saw the opportunity as viable. Barbara Corcoran stated she couldn’t add value to the business and decided to step out.

Similarly, Mark Cuban expressed his doubts, citing chess as a niche market, and opted out as well.

Kevin O’Leary, intrigued by the royalty structure, probed deeper into their expected sales for that year.

Despite the lack of a marketing budget, Jeff and Adam projected $1.4 million in sales by the end of the year.

While Kevin appreciated the alignment of their royalty deal with his past investments, he ultimately found the arrangement too complicated and stepped away.

Impressed by the product, Lori Greiner offered $300,000 for 10% equity. Jeff countered with $300,000 for 5% equity and a 3% royalty until Lori recouped $450,000.

Lori quickly agreed to the terms, closing the deal before Robert Herjavec could weigh in.

Now, let’s get a ChessUp update about what happened after Shark Tank

Shark Tank ChessUp Update 

Our ChessUp update found that the deal with Lori Greiner was never finalized.

Despite this, the company experienced a significant boost in sales, with their smart chessboards selling out shortly after airing.

The company secured additional funding from the Missouri Technology Corporation’s IDEA Fund, aiding in scaling production to meet demand.

In response to market feedback, ChessUp reduced the price of its boards from $399 to $299.

Further, our ChessUp update found that they expanded their product line to include accessories such as a game board carrying bag, a phone stand, and smart game checker pieces.

At the time of writing our ChessUp update, the company has grown to around $1.4 million in annual revenue.

We are calling this ChessUp update a success.

For more updates on companies from Shark Tank Season 14 Episode 9, be sure to check the links below:

• Ready Festive Update
• Zip String Update
• Garage Celebrations Update

Before you go, check out our Shark Tank Season 14 page for more updates.