Vengo Smart Vending Machines Update | Shark Tank Season 7
If you’re tired of dealing with the same old vending machines, Vengo provides a high-tech, fully modern alternative. The smart and cashless vending machines are also small and designed with impressive technology created by aerospace engineers. What will the sharks think of what Brian Shimmerlik and Steven Bofill have to say on
Shark Tank Vengo Update
- Entrepreneurs: Steven Bofill and Brian Shimmerlik
- Business: Smart, cashless vending machines
- Ask: $2 million for 12.5% equity
- Result: 36-month loan of $2 million at 7% and 3% equity
- Shark: Lori Greiner and Kevin O’Leary
Steven and Brian entered
While its small size was efficient, it only dispensed small items such as pain relievers, mints, and gum. The technology used included a touchscreen display. Vending operators could easily manage the machines through a smartphone. This allowed access to inventory and chart trends that could help with increasing engagement.
Steven and Brian stated they were at the helm of a media company that made a profit from license agreements for the software used by Vengo machines. Each of them cost $20 a month, which included maintenance. They were then sold at cost to vending machine companies for $2,500.
Product providers were charged $200 per month per SKU. Steven and Brian claimed that they were on track to make $1 million during the following year. They estimated their valuation at $16 million, after raising $3.4 million in investments and securing contracts with some of the largest vending machine companies in the country.
Mark Cuban was the first shark out because he’d already invested in a company he saw as competition for Vengo. Daymond John was also out because he didn’t believe in the valuation. Robert Herjavec found the business model unfocused and went out.
Kevin O’Leary wondered if Steven and Brian were in debt, but Steven confirmed that they had no debt. Kevin offered to loan them $2 million for 36 months at 7% interest for 6% equity.
Lori Greiner did not find the design appealing but showed interest. Steven and Brian asked her if she wanted to partner up with Kevin. They also counter the offer of $2 million for 36 months at 7% interest for 1% equity, but neither Kevin nor Lori agree to the equity.
Lori and Kevin counter for 4% equity, and Brian offers 2.5% and remains firm while Kevin and Lori offer 3.5%. Eventually, Kevin and Lori offer 3% equity, which Brian and Steven accept, earning themselves a deal.
What do you think happened next? Read on to find out more about this Vengo update.
After leaving the
Vengo now has over 1,500 machines and has has an estimated annual revenue of over $10 million. Learn more about Vengo on the company’s website.
Would you like to know more about other company updates featured on Season 7 Episode 22? Check out what other companies offered the sharks by following the links below.
If you want to find out even more about companies and products, drop by our Season 7 Products Page.
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