TekDry Phone Repair Update | Shark Tank Season 8

When people drop their phones in water, they often resort to ineffective methods like placing them in rice. Seeing this common issue, Adam and Craig developed TekDry, a device that uses low pressure and heat to safely and quickly dry out devices and gadgets. Is TekDry about to score big with the sharks? Let’s dive into our TekDry update and pitch recap to find out.

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

Adam and Craig appeared on Shark Tank Season 8 to pitch TekDry phone repair, seeking $500,000 for a 5% equity. After their pitch, they made a deal with Kevin O’Leary for $500,000 as a loan at 13% interest plus 5% equity.

In terms of a TekDry update, the company raised $4.5 million and expanded to over 600 Staples stores by 2022. However, due to mismanagement and financial difficulties, TekDry’s operations have drastically reduced to just two locations, with a fading online presence and an uncertain future.

Shark	Result
Kevin O’Leary	Accepted offer of $500,000 as a loan at 13% interest plus 5% equity
Mark Cuban	No offer
Barbara Corcoran	No offer
Robert Herjavec	No offer
Lori Greiner	No offer

Shark Tank TekDry Pitch

• Entrepreneurs: Adam Cookson and Craig Beinecke
• Business: Repairs wet phones
• Ask: $500,000 for 5% equity
• Result: $500,000 as a loan at 13% interest plus 5% equity
• Shark: Kevin O’Leary

Adam and Craig kicked off their pitch by introducing TekDry, a patented technology aimed at rescuing wet phones and gadgets from water damage.

They were seeking an investment to ramp up production and expand their reach in more retail stores.

TekDry’s service repairs water-damaged electronics using a specialized machine.

The process involves placing the device in the machine for about 30 minutes. 

During this time, a low-pressure vacuum and regulated heat turn water particles into gas, effectively drying out the moisture.

Unique pellets in the machine absorb the water without needing chemicals, making it a safe and efficient solution.

One of TekDry’s key advantages is that it doesn’t require disassembly, reducing the risk of further damage or data loss.

They also offer a money-back guarantee for their mail-in service, which means that customer satisfaction is still guaranteed if their device cannot be repaired.

TekDry’s non-invasive process and commitment to data preservation provide a convenient and reliable solution for saving water-damaged electronics.

Most of the sharks were impressed with TekDry, but Lori Greiner had her doubts. She was skeptical about whether people could actually save their water-damaged phones.

In response, Adam and Craig addressed her concerns by sharing stories of phones that had been successfully rescued even after being wet for several days.

At the time of the pitch, TekDry was in 82 stores, up from just a few the previous year when they made $29,000.

They were preparing to expand to 600 more stores and projected $650,000 in sales.

Customers paid $69 to dry out their phones, with TekDry keeping 60% of the revenue while the store took 40%.

However, the sharks became less enthusiastic when they learned TekDry had already raised $2.2 million.

Robert Herjavec was the first to exit the negotiations, citing his dislike for brick-and-mortar retail.

Lori didn’t like the valuation and couldn’t see a return on investment, so she dropped out.

Barbara Cocoran believed new smartphones would soon be waterproof, which would make their service go out of business really fast. She’s out as well.

Mark Cuban was concerned that continuous fundraising would dilute his investment. For this reason, he dropped out.

Kevin O’Leary made an offer for a $500,000 loan at 13% interest for 36 months in exchange for 5% equity.

The entrepreneurs tried to negotiate for more, but Kevin stood firm. After a brief discussion, they accepted his terms and left with a deal.

Let’s get a TekDry update to see what happened after Shark Tank.

Shark Tank TekDry Update 

Our research on the TekDry update found that the deal with Mr. Wonderful was successfully closed. 

Further, they raised $3 million in July 2019, followed by another $1.5 million in March 2020, to help grow the business.

By June 2022, they had machines in over 600 Staples stores across the U.S., bringing in about $1 million in annual revenue.

However, by June 2023, due to mismanagement and financial challenges, TekDry’s services were down to just two locations: Marathon, Florida, and Kahului, Hawaii.

Their social media has been quiet since 2019, and their website is no longer active at the time of writing.

Although TekDry is technically still in operation, the sharp drop in locations and lack of online presence suggest the company is struggling.

Our TekDry update found that Adam and Craig’s LinkedIn profiles indicate that they’re still involved with TekDry, but they’ve also taken on other roles since their time with the company.

Co-founder Craig Beinecke has even moved on to start a new venture, hinting at a possible shift in priorities.

The future of TekDry remains unclear, with no new updates or plans announced.

While Staples still lists TekDry’s services on its website, it’s uncertain how much longer they’ll be around.

If we get another TekDry update, we will be sure to let you know.

For more Season 8 Episode 3 product updates, check out the links below:

• Raising Wild Update
• The Cookie Kahuna Update
• Night Runner 270 Update

Before you go, check out our Shark Tank Season 8 page for more updates.