Scott Adams and Josh Faherty’s battery-powered advertising signs move on their own, much like human sign spinners paid to catch the eyes of potential customers. Will they earn a deal on
Shark Tank Velocity Signs Update
- Entrepreneurs: Scott Adams, Josh Faherty
- Business: Mechanical signs
- Ask: $225,000 in exchange for 15% equity
- Result: $225,000 in exchange for 30% equity
- Sharks: Mark Cuban, Robert Herjavec, Kevin O’Leary
Scott and Josh brought their mechanical signs to the tank, and shared how shared how their company, Velocity Signs came to be. En route to a meeting one sizzling afternoon, Scott passed an exhausted, sign waver who seemed worn out by the heat. Since he was in the sign business, he knew there had to be a better way. That’s when their mechanical signs were created.
A typical sign cost $1,000 to make, and retails from $18.99 to $2,850 each. The company sold 125 units in the twelve months prior to filming, for about $257,000 in sales. According to Scott, the average customer got a 15% return on their investment. Their biggest customer at the time was Little Caesars Pizza. The two anticipated growth in the next year and were seeking an investment from the sharks to hire staff.
Robert Herjavec was the first out, saying he wasn’t a fan of the sign business. Kevin O’Leary said there wasn’t yet a proven history with the company, so he was out. Mark Cuban didn’t think they would be able to grow the business at a worthy rate, so he was out. Barbara Corcoran found flaws with the product, so she was out too.
Lori Greiner offered $225,000 in exchange for 30% equity. Scott was about to respond to Lori’s offer when Kevin said he liked that valuation and wanted to go in with Lori as a second partner. Mark chimed in and said he wanted to be a third partner. That would give each of the three sharks a share of just 10%. Lori wasn’t pleased with Kevin or Mark, who had dropped out of the offer just moments before, and Mark told her that if she didn’t like it, he and Kevin could partner with Robert instead. Robert, who had also rejected the company earlier, said he was alright with that.
Their underhandedness offended Barbara, who said she would partner with Lori. Lori reminded Scott and Josh that she was the only one who had believed in them enough to make an offer, and only after that did the other three sharks jump back in. Lori revised her offer to $225,000 for 25%, of which she and Barbara would take equal shares.
There was some intense back and forth, but ultimately Scott and Josh went with Mark, Kevin, and Robert, walking away with a deal. What happened next for the company? Keep reading our Velocity Signs update to find out!
Our research revealed that after the episode aired, the company went on to earn $3 million the following year. Despite having an investment from Mark, Kevin, and Robert– and with a high-profile clientele that included Ford Motor Company, McDonalds, Dominos, and other household names, the company went out of business in 2019. This will be our final Velocity Signs update.
Would you like to learn about the other companies featured on Season 5 Episode 23? Follow the links below for our other updates from the episode.
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Jennifer is an avid Shark Tank fan that has been watching the show for years. She serves as Senior Editor at Shark Tank Recap and ensures that all our information is accurate and that our posts are up to date. Her favorite Shark Tank products are Le-Glue and Ring!