Woosh has developed one of the first smart air filters for homes. Winston Mok founded the company and is asking the sharks for $500,000 of their money for 10% equity, with the hopes of reaching a strategic partner that can help boost the business. Let’s see if Winston managed to earn a deal before we cover the Woosh update.
Shark Tank Woosh Update
- Entrepreneurs: Winston Mok
- Business: Smart Air Filters
- Ask: $500,000 for 10% equity
- Result: $500,000 for 10% equity + $0.50 cent royalty
- Sharks: Kevin O’Leary
Woosh’s air filters have a two-part design that includes a frame and an air filter that is integrated with sensors that can connect to WiFi and provide notifications when a filter needs to be replaced. This can kickstart the process of receiving a new air filter in the mail when it’s time to change them out.
Kevin O’Leary was prepared to slice the company on its valuation but everything came to a halt when Winston admitted that his company was pre-revenue. This brought on some groans and moans from the sharks as they couldn’t believe the valuation was being asked based on a pre-revenue business.
Before all of the sharks dropped out, Winston saved himself by telling the sharks that he had a partnership set up with Emerson that wanted to partner Woosh’s product with another product similar to a smart thermostat. The entire package costs about $99 and a replacement filter would cost $20 separately. The company’s average margin is 33% on every single unit produced.
Kevin O’Leary decided to offer $500,000 for 15% equity and a royalty of $0.50 in perpetuity. Robert Herjavec wasn’t interested in making an offer and decided to drop out. Daymond John also dropped out along with Lori Greiner.
After considering Kevin’s offer, Winston decided to counter at 10% equity along with the $0.50 royalty. After some thought, Kevin agreed and they made a deal. Now let’s get an important Woosh update.
With Kevin on board, Woosh seems poised to go and negotiate with other major players in the air filtration industry. With the exposure from
It’s also possible that Kevin and Winston license their air filters to other brands, but it’s a little too soon to tell whether or not that can happen. We will let you know in our next Woosh update!
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