Shark Tank Season 12 Episode 3 aired on October 30, 2020 and featured Hug Sleep, Animated Lure, The Cereal Killerz Kitchen, and Chirp. Series regulars Kevin O’Leary, Mark Cuban, Lori Greiner, Daymond Jones, and Robert Herjavec appeared on the episode. This was an eventful hour, as one of the companies came into the tank with a $45 million valuation. Here’s our
Shark Tank Season 12 Episode 3 Recap
If you’re in a hurry, below you’ll find a quick recap of Season 12 Episode 3 of
- Pitch 1: Hug Sleep
- Result: $300,000 for 20% deal with Mark Cuban and Lori Greiner
- Pitch 2: Animated Lure
- Result:$325,000 for 10% and a $3 royalty until $1 million is paid back deal with Kevin O’Leary
- Pitch 3: The Cereal Killerz Kitchen
- Result: No deal
- Pitch 4: Chirp
- Result: $900,000 for 2.5% equity deal with the condition that the investment must be paid back in 18 months with Lori Greiner
If you keep reading, you’ll find a more detailed summary of each pitch in our Season 12 Episode 3 recap.
- Entrepreneur: Angie Kupper and Matt Mundt
- Business: An adult swaddle-like blanket to promote better sleep
- Ask: $150,000 for 10%
- Result: $300,000 for 20%
- Shark: Mark Cuban and Lori Greiner
In the first pitch of
- COOLING BLANKET FOR ALL SLEEPERS + SLEEPING POSITIONS: Sleep Pod is made...
- NEW AND IMPROVED PATENTED ORIGINAL SLEEP SOLUTION, AS SEEN ON SHARK TANK:...
Angie and Matt quickly impressed the sharks, sharing that Hug Sleep has amassed $490,000 in sales over the past 16 months, with $335,000 in sales in the last 12 months. Further, each blanket sells for an average of $99 and has a profit margin of 41%. Oh, and the company was started with just $2,500.
Daymond Jones instantly jumped in and made an offer to Angie and Matt, but before they could negotiate, Kevin O’Leary and Lori Greiner also made offers, followed by Mark Cuban and Robert Herjavec. There were lots of different offers thrown around, but when the dust settled, Angie and Matt found themselves with two different offers:
- Mark and Lori: $300,000 for 20%
- Kevin, Daymond, and Robert: $300,000 for 20%
Ultimately, Hug Sleep stuck a deal with Mark Cuban and Lori Greiner at $300,000 for 20%.
- Entrepreneur: Sobhan Sanaee and Kanz Kayfan
- Business: Rechargeable robotic fishing lure
- Ask: $325,000 for 10%
- Result: $325,000 for 10% and a $3 royalty until $1 million is paid back
- Shark: Kevin O’Leary
Sobhan Sanaee and Kanz Kayfan introduced their product, Animated Lure, on
The sharks continued to be impressed when Sobhan and Kayfan shared that it costs them $8-$16 to make each lure and they retail for $29.95-$79.95, leaving a nice large profit per unit. Further, each fish holds a charge for 45-120 minutes, depending on the type of lure, and can be used around 40 times each before it needs to be replaced.
In addition to all of this, Animated Lure has no debt and was started with $125,000 of Sobhan and Kayfan’s own money. In 2020, their year-to-date sales were $247,000 and they are projecting $675,000 in 2021. Despite a solid pitch, four of the five sharks dropped out and only managed to hook Kevin O’Leary.
Kevin offered Sobhan and Kayfan a $325,000 investment for 10% equity and a $3 royalty until he received $1 million in return. After two failed counteroffers, Kevin decided he was out but then changed his mind and gave the entrepreneurs one last chance to accept his offer. They didn’t blink and Animated Lure struck a deal with Kevin O’Leary for $325,000 for 10% and a $3 royalty until $1 million has been paid back.
The Cereal Killerz Kitchen
- Entrepreneur: Jessica and Chris Burns
- Business: Retail focused cereal-bar
- Ask: $125,000 for 10%
- Result: No Deal
- Shark: None
The third pitch on
Despite the negative start to the company, Jessica and Chris are confident that they can make The Cereal Killerz Kitchen into a national brand, but the sharks weren’t quite convinced. All five sharks went out on the deal without making an offer. However, Mark Cuban did offer some advice to The Cereal Killerz Kitchen, suggesting that they partner with a legal and financial advisor to prevent them from losing the rest of their savings.
- Entrepreneur: Tate Stock
- Business: A wheel roller that relieves back pain
- Ask: $900,000 for 2%
- Result: $900,000 for 2.5% and must be paid back in 18 months
- Shark: Lori Greiner
The final pitch on
After Kevin O’Leary questioned Tate’s $45 million valuation, he quickly explained himself, sharing that Chip had made $12 million in sales so far in 2020 and would profit $4 million. Further, by the end of 2020 Chirp is expecting $40 million in sales and a $12 million profit.
- INNOVATIVE & FUNCTIONAL DESIGN: Chirp Wheel+ is designed with trigger...
- BUILT-TO-LAST QUALITY: Our back stretcher wheel provides your back with a...
Despite strong sales, Daymond Jones wasn’t totally convinced that Tate was there to make a deal, but Mark Cuban jumped to Tate’s defense and Daymond backed down. If you’d like to see that exchange, see the video above.
Chrip received three separate offers from the sharks:
- Lori Greiner: $900,000 for 2.5% equity with the condition that her investment must be paid back in 18 months
- Kevin O’Leary: $900,000 for 2.5% equity with a $3 royalty until he’s recouped $2.7 million
- Robert Herjavec: $900,000 for 3% equity with a $1.50 royalty until he’s recouped $1.2 million
After weighing his options, Tate Stock and his company Chirp made a deal with Lori Greiner for a $900,000 investment for 2.5% equity with a contingency that the money must be repaid within 18 months.
For more Season 12 recaps, check out the links below:
- Shark Tank Season 12 Episode 1 Recap
- Shark Tank Season 12 Episode 2 Recap
- Shark Tank Season 12 Episode 4 Recap
Additionally, for a full list of products from Season 12, be sure to check out our Season 12 products page!