With an imputed valuation of $10 million for their float tank company Urban Float, Joe Beaudry and Scott Swerland were going to have a tough time convincing the sharks that their company was worth a $500,000 cash investment. Let’s see if they managed to convince the sharks to invest before we take a closer look at the Urban Float update.
Shark Tank Urban Float Update
- Entrepreneurs: Joe Beaudry and Scott Swerland
- Business: Spas and Relaxation
- Ask: $500,000 for 5% equity
- Result: $500,000 for 12.5% equity
- Sharks: Matt Higgins
Joe and Scott were confident in their ability to earn an investment from the sharks. They demonstrated their floatation pods that specialize in relaxation, but the sharks were having a tough time accepting the imputed valuation from these two entrepreneurs. Joe and Scott were quickly on the defensive as they tried to defend their company’s valuation. There are four corporate locations already in operation, according to Joe and Scott. The primary location is within downtown Seattle and currently generates a ton of revenue for the company.
There are a couple of different ways that customers can take part in the company’s services. A single session of relaxation in one of the company’s pods is about $45. Unlimited monthly membership is about three times more at $150. The company’s gross revenue was about $2 million in the current calendar year and had a net profit of about $600,000.
Mark Cuban wasn’t interested in making the entrepreneurs a financial offer. There were too many questions surrounding the demand for this type of relaxation technique, so he dropped out. Daymond John and Lori Greiner also dropped out because they weren’t interested in investing in a company with so much financial debt.
Kevin O’Leary decided to make an offer of $500,000 for 15% equity. 80% of the money would be a loan at an interest rate of 9.5% while the other 20% would be straight cash. The guest shark in Season 10 Episode 16 was Matt Higgins, who was also still open to making an offer. Matt decided to offer $500,000 for 15% equity without any loan terms.
Joe and Scott ultimately managed to secure a deal with Matt. The final accepted offer was $500,000 for 12.5% equity. Now, let’s transition and get an Urban Float update to see if the company is still in business and how they’ve been doing since its appearance on
Urban Float has managed to grow and stay in business since its appearance on
You can find the other company updates from Season 10 Episode 16 here:
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