Keen Home before Shark Tank:
Keen Home is the brainchild of New York friends turned entrepreneurs, Ryan Fant and Nayeem Hussain. Keen Home is a series of smart air vents for people’s homes that can be operated from an app meaning you can control the temperature of your home from your cell phone. This innovative creation by the duo means that users of Keen Home can create different cool or warm zones in their homes.
Ryan Fant initially came up with this idea when he was sick of not being able to control the temperature of the air that blew down on him while he was lying in bed. He began to brainstorm before coming up with the mobile app that would allow him to change the temperature of the air coming from the vent without even having to move from the comfort of his bed. When he began developing the idea, he realized that he could help householders make some great financial savings to and so Keen Home was born.
The duo initially won their college entrepreneur’s challenge and they were awarded an $18,000 grant to get their business started. Ryan and Nayeem went on to have a successful kick-starter Indie Go-Go campaign in which they raised an initial $40,000. After the success of the kick-starter campaign, Keen Home experienced success and there was a lot of interest from some big investors. However, Ryan and Nayeem needed some additional help and expertise to keep up with demand and grow their company. They decided to enter the shark tank in the hope that one of the sharks would like Keen Home. Will Ryan and Hussein keep their cool in the Shark Tank and will the sharks bite and give the duo the investment they need?
Keen Home in the Shark Tank:
Ryan and Nayeem enter the shark tank and introduce their business, Keen Home. Ryan goes on to explain to the sharks that the duo has come to the shark tank today seeking an investment of $750,000 in return for a ten percent equity share of their company. The duo further explains that a Keen vent is a wireless smart air vent that automatically opens and closes to intelligently redirect the airflow around your home. Ryan also goes on to explain that the Keen vent is very user-friendly. One can simply remove the old vent and pace the Keen vent in its place. Once installed, the Keen Vent automatically connects to the internet. Nayeem makes the point that you would not use a single light switch to control all the lights in your home so why should one use a single thermostat to heat all the rooms when the Keen Vent can solve that problem. Ryan adds that with the Keen Vent, you can use your smartphone to take control of the air flow in your home via the specialized app. The duo finishes their pitch and the sharks begin their questions.
Lori asks if the product is, in essence, a thermostat. Nayeem explains that the product should be seen as a complement to an existing thermostat. It doesn’t take long for Mr. Wonderful to start asking questions about money and he wants to know just how much money he can save in a month by using the Keen Vent. Kevin asks if his electrical bill was to be $600, how much money would he actually save. Ryan explains that the average home spends $2000 a year on heating and cooling. Even if the homeowner saves ten percent, it is more energy efficient as well as financially rewarding for them. Daymond wants to know exactly how many of the Keen Vents one would have to put into their home. Ryan explains that four to six Keen Vents are enough with each vent costing $80.
Mark wants to know how much the duo has already invested in their company thus far. Ryan explains that the pair invested $50,000 each of their own money and also received an additional $120,000 from kick-starter campaigns. Ryan also adds that they closed an investment deal of $1.5 million dollars and Daymond appears happy at this.
Kevin acknowledges that the company is probably currently worth about $5 million and wants to know what is so good about Keen Home that will make him want to invest. Further to that, Mr Wonderful wants to know what is so good about Keen Home that the duo is asking for an additional $2.5 million more than the current value of the company. Ryan explains the company has been de-risked and has gone from being an idea to being a product. Kevin retorts that no products have yet been sold to which Nayeem remarks that 35,000 units have been pre-sold to household giant Lowes.
Daymond is impressed and asked if Lowes asked for exclusivity for a certain amount of time. The duo replies that Lowes is looking for exclusivity for a period of two years. However, they can still sell online and to independent sellers.
Mark sees the Keen Vent as a feature, not a product and he thinks that this will be the downfall for selling the product in the Lowes stores throughout the United States. Mark thinks that customers want to automate their homes, not their vents. He feels that the product is not for him and he informs the two entrepreneurs that he is out.
Lori admits that she is a little confused about what exactly the Keen Vent is going to do and how exactly it is going to do. Lori goes on to say that she gets the overall concept but her problem is that customers need to look at the product and know immediately what it can do and the effect it can have on their homes. She thinks that explaining this product in a quick, snappy manner in retail stores may prove problematic and for that reason, she declares herself out.
Mr. Wonderful admits that the problem he has with Keen Vent is purely financial. He does not like the fact that just a few months ago, another investor bought into the company for a smaller sum. Kevin feels that for the value he would bring to the company, he needs a larger equity share of the company. Kevin decides to offer the $750,000 the duo is looking for but in return for a twenty-five percent equity share of the company.
Robert agrees with Kevin and does not think that the company should be valued quite as high as Ryan and Nayeem first valued it at. Daymond clearly likes the concept and the company and it is time to make a decision as to whether he wants in on Keen Vent. Daymond decides to match Kevin’s offer of $750,000 for a twenty-five percent equity share of the company. However, Daymond also wants the manufacturing rights of the products so he can reap the financial rewards from that side of the business also. Ryan and Nayeem are interested in Daymond’s offer and Daymond informs them that he wants to help get the Keen Vent into hotels around the United States as well as exploring other areas to pitch the product to.
Robert really likes the concept and can see the potential for expansion into a whole range of other products for the home. Robert doesn’t think the duo need help with the manufacturing end of things and eventually he decides to make an offer. Robert acknowledges that the twenty-five percent equity share that Daymond and Kevin are looking for is a bit rich so he makes an offer of $750,000 for a twenty percent equity share in the company.
Robert amends his offer to a loan type situation and offers $750,000 for ten percent equity and Lori agrees to team up with Kevin for this offer. Daymond reiterates his offer but the duo seems reluctant to do a deal where they will face being in debt.
Robert amends his offer to $750,000 for a thirteen percent equity share in the company. Lori tries to convince both Ryan and Nayeem that she has a lot of influence in the home stores across the United States. Not wanting to be left out of the battle, Daymond also decides to amend his offer to $750,000 for a twenty percent equity share in the company.
The sharks all seem to be vying for the attention of the duo before Kevin finally asks them what they are going to do. Nayeem finally concedes that they are looking for a partner who is ‘all-in’ as Robert described. For that reason, they decide to accept Robert’s offer of $750,000 for a thirteen percent equity share of the company.
The duo leaves the shark tank incredibly happy that they have done a deal with Robert. There is no doubt that Robert will help Ryan, Nayeem and Keen Home succeed.
Keen Home update after Shark Tank:
Since doing the deal with Robert in the Shark Tank, Keen Home has had great success. Since leaving the Shark Tank and partnering with Robert, both Ryan and Nayeem have done over $1.6 million dollars in sales. Since Robert invested, the duo has already begun to expand their product range and have added the Keen Home smart filter. This advance in technology in the Keen Home app allows the user to purify air flow on a room by room basis. The advance in technology means that Ryan and Nayeem are one step closer to combating the indoor air-quality issue so many people in the United States experience. The entrepreneurs are already looking into further expanding on this technology and developing a way to neutralize the odor is the air flow also.
Robert is extremely happy with the duo. He believed in them when they were in the shark tank and he has no doubt that Keen Home has a bright future ahead. We wish them the best of luck!