Zomm on Shark Tank
The inventors of the Zomm, Henry and Laurie Penix from Tulsa, Oklahoma, came up with the name using the first letter of their kid's name. Starting with Zack, Olivia and Madison, with the additional M standing for Mom, completes the Zomm Brand name.
Henry Penix walked into the Shark Tank looking for a $2 million dollar investment in exchange for 10% equity stake in the Zomm Business. Starting negotiations with the Sharks putting a $20 million valuation on the company you best have some sales too back it up, and they did. In 2011 sales were $5 million, with 2012 sales on track to sell $7.2 million with $2 million in net profit.
The Penix's invested $4 million of their own money in the Zomm technology, with an additional $5 million coming from another Angel Investor. While already on track to clear $2 million for the year, why on earth would Henry want to sell a 10% stake in the company and bring in additional partners? That's a great question the Sharks were finally able to answer when it was revealed he was sitting on over $2 million in inventory left over from the Christmas season.
Earlier that year the Zomm won 3 awards from the International Consumer Electronics Show in the Personal Electronics, Health & Wellness and Wireless Handset categories which certainly added to its credibility. What didn't make any sense was the valuation of $30 million when the first investor put in $5 million, and now on the shark Tank Show the valuation was lowered to $20 million which had all the Sharks questioning how solid this investment would be.
Daymond John asks how much research and development has been put into this wireless leash for iPhones? Henry says they have put over a million dollars to develop the product. Mark Cuban seems convinced this company has grown too fast which has him going out without any offer. With a $10 million lower valuation from the past, Robert Herjevic gets he feeling that the Business will not succeed and potentially go under, which has him going out as well. Lori Greiner really likes the Zomm technology and thinks it would be a big hit on QVC, but these numbers are not adding up and senses there is more to the story than whats being told. She also proceeds to go out with the remaining Sharks leaving Henry with no deal on the Shark Tank Show.
Zomm Update After The Shark TankThe bad news is Henry and Laurie had $2 million worth of inventory during their Shark Tank appearance. The good news is they got completely overwhelmed with new fans and orders after being featured on the Show as the Shark Tank Effect took hold. With beefed up servers already expecting a flood of new traffic, the Zomm site was still not able to keep up with all the interest.
This business may of had the highest valuation of any company ever featured on the Shark Tank, but did the Sharks make a mistake and let a true whale get away? It appears that might be the case because the Zomm Business seems to be flourishing with even more new products added to its impressive line up. With the Wireless Leash, ZOMM Wireless Leash, a handy Safe Driving Kit for your phone and the brand new Lifestyle Connect using the same technology, this company has made tremendous strides within the last year.
With the huge success this business had before the Shark Tank, and now the tremendous growth within the past year, the Zomm Brand has a very good chance at becoming one of the most successful businesses ever featured on the Shark Tank Show.
List of all New Zomm Products