Stovetop fires can be deadly. Firefighter Peter Thorpe, found a great solution in the form of a kill switch plug. This device works with your smoke detector to turn your electric stove off at the first sign of smoke. It’s great for private residents, but even better for apartment and multi-family properties. What will the sharks think of Peter’s innovation in
Shark Tank FireAvert Update
- Entrepreneur: Peter Thorpe
- Business: Stove-top fire prevention plug
- Ask: $300,000 for 7% equity
- Result: $300,000 loan with 10% royalty until $400,000 recouped, then 10% equity.
- Shark: Lori Greiner
Peter pitched his product, the FireAvert plug, by stating that there’s a stove fire every 4.5 minutes in the US. He showed the sharks how it worked, as you only needed to plug it in. When the smoke detector goes off, it immediately cuts the stove off. The plug was only available for electric stoves at the time.
STOPS KITCHEN FIRES - Through smoke alarm sound detection, FireAvert-Gas Stove will monitor and stop the flow of gas to your stove, safeguarding you and your home.
Peter had about $2 million in sales during the year of filming. Each FireAvert plug was $45 to make and sold for $195. The sharks believed that the cost was too high. However, they were even more skeptical when he revealed that he only owned 30% of the company.
He sold off his equity to make it, and his friend (who owned apartment buildings) has 60% of the company. Mark Cuban didn’t like this, because it meant that his friend had control of the business.
Daymond John liked the product, but the equity spread was too much for him, so he went out. Lori Greiner didn’t want to take any more of the company away from him, so she went out too. Kevin O’Leary, on the other hand, wanted to buy the friend’s equity and take 49% equity for himself.
Robert Herjavec offered the same deal as Kevin but for $400,000 instead of $300,000. Peter called his friend (with help from Mark) and asked if he would be willing to sell his portion of the business. However, he wouldn’t sell his equity.
Peter returned from the hall with a deal for Lori. He asked if Lori would do $300,000 for 12% equity if he could lower the price to $99. She countered with $300,000 as a loan at 5% interest and a 15% royalty until she got her money back, then 12% equity in the company.
Kevin countered at $300,000 as a loan with a 10% royalty, but Peter had his sights set on Lori. He asked if she would do $300,000 as a loan, 10% interest until she recoups $400,000, and a 10% equity. Lori counters again with $300,000 as a loan, 10% royalty until she makes $400,000 and then 10% equity. Peter agreed to the deal. Let’s find out how things worked out in our FireAvert update.
During research for our FireAvert update, we found that the deal with Lori didn’t close. Instead, Peter shifted his focus to multi-family property owners and began attending trade shows for rental property owners.
They even introduced a version of the FireAvert plug that worked for gas stoves instead of just electric ones. Annual revenue in 2022 is around $4 million.
You can learn about how FireAvert works and purchase all available products on the FireAvert website and on Amazon.
You can find more information and company updates for the other products featured in Season 7 Episode 12 here:
Find out more about companies and products on our Season 7 Products Page.