Vengo Smart Vending Machines Update | Shark Tank Season 7

Back in 2012, Steven Bofill and Brian Shimmerlik were trying to sell snacks in New York City taxis but ran into a problem. Regular vending machines were too big and didn’t work in small spaces like taxis, offices, or gyms. That’s when they came up with Vengo, a small vending machine that hangs on the wall, sells everyday items like gum and earbuds, and can be controlled from a phone. Let’s see if their company can secure a deal in our Vengo update and pitch recap.

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

Steven and Brian entered Shark Tank Season 7, seeking $2 million for 12.5% equity in their smart, cashless vending machines. After their pitch, they bagged a deal with Lori Greiner and Kevin O’Leary for a 36-month loan of $2 million at 7% interest and 3% equity.

In terms of a Vengo update, the company raised significant funding, expanded its digital kiosk network, and formed key partnerships. 

Shark	Result
Kevin O’Leary and Lori Greiner	Accepted offer of a 36-month loan of $2 million at 7% interest and 3% equity
Daymond John	No offer
Robert Herjavec	No offer
Mark Cuban	No offer

Shark Tank Vengo Pitch

• 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% interest and 3% equity
• Shark: Lori Greiner and Kevin O’Leary

Steven and Brian entered Shark Tank to present their product, Vengo, with which they’re seeking to revolutionize the world of vending machines.

Brian explained they had redesigned vending machines. Instead of large, outdated models, Vengo offered slim, wall-mounted machines with digital screens.

Steve pulled back a curtain to reveal one. The sharks listened, but no one looked impressed yet.

However, 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.

As a result, 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 costs $20 a month, which includes 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.

Despite this, Mark Cuban backed out. He already had a deal with Oasis, a vending company for feminine products.

Daymond John dropped out. He said the valuation made no sense. Robert Herjavec also passed. He found the business model confusing and saw too much competition in the ad space.

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.

Brian asked Lori Greiner if she would join Kevin’s offer. She wasn’t sure. Brian reminded her that the vending market was worth $7 billion. Lori started to come around.

They also counter the offer of $2 million for 36 months at 7% interest for 1% equity, but. Kevin and Lori rejected it.

Lori pushed for 4%. Brian stood firm at 2.5%. After some back and forth, they agreed on 3% equity. Brian and Steven accepted, earning themselves a deal.

What do you think happened next? Read on to find out more about this in our Vengo update.

Shark Tank Vengo Update

Our Vengo update found that the deal with Lori Greiner and Kevin O’Leary fell through during due diligence. Despite that, Vengo kept moving forward.

In January 2019, the company raised $7 million in Series B funding, led by Arcade Beauty. That brought their total funding to about $14 million across eight rounds.

Vengo expanded to over 1,000 digital kiosks. These machines were placed in gyms, hotels, college campuses, and offices.

The company also partnered with Blackstone LaunchPad to boost its presence on campuses.

In 2020, Vengo launched a digital out-of-home (DOOH) media platform. They teamed up with National Entertainment Network to place screen-equipped devices in grocery stores and restaurants.

Later, they partnered with Gallery Media Group to help online brands show up in physical spaces.

As of this writing, Vengo is estimated to be worth around $50 million. Brian remains CEO, and Steven is still Chief of Design.

Annual revenue figures are not public, but the company now operates over 1,500 machines. Learn more about Vengo on the company’s website.

We’re calling this Vengo update a success.

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.

• Beer Blizzard Update
• The Good Promise Update
• Wondercide Update

Before you go, be sure to check out our list of all the Shark Tank Season 7 products.