Today, being able to get good sleep can be a challenge. Whether it be mental health, electronics, insomnia, or any other factor keeping someone awake at night, it affects them in many ways. Because of this, it is important to establish a sleep schedule and get oneself to be able to go to sleep on time each night. There are many ways to go about getting to sleep. Though, not everyone is comfortable taking a sleep aid. Fortunately, the founders of Hug Sleep understood those struggles and created the Hug Sleep pod to help people sleep better each night.
Hug Sleep is essentially a swaddle for adults, otherwise known as a sleep pod. It’s made from a stretchy fabric, which promotes comfort and mobility during the night. The fabric used is lightweight and allows the body to breathe, while gently applying a soothing pressure to the body. This patented sleep pod was created with the intention of helping anyone whom may struggle with getting to sleep – it also helps people struggling with anxiety. Hug Sleep uses deep touch therapy to calm the mind and body, making it easier for consumers to drift off to sleep. Just simply slip the sleep pod around your body, curl up in bed, and enjoy the nice rest.
Since launching Hug Sleep, the founder’s had mentioned that they had made $335,000 in sales within just one year. Their lifetime sales, at this time, were up to $490,000. Not only is that a great success, but it showed the founders that their creation really was helping consumers sleep better. Although, on the off chance that it doesn’t help, the founder’s offer consumers a 30-night guarantee to try the product. Consumers can find these sleep pods on the Hug Sleep website or on Amazon. Each pod costs $89.99, and they come in a variety of sizes, from small to large.
Continuing on with their successes, Matt and Angie did end up getting Hug Sleep featured on multiple websites, such as Fast Company, Yahoo Lifestyle, and BuzzFeed. It’s clear that this husband and wife duo have started and ran their business successfully thus far; however, they are looking for help from a shark. They hope they can get an investment and have a shark help them with manufacturing and production.
Hug Sleep on Shark Tank
Matt and Angie enter the Shark Tank seeking $150,000 for a 10% equity in Hug Sleep. They begin pitching their idea to the sharks. Angie tells the sharks about the product, explaining how beneficial compression is for those struggling with their mental health. She tells them her story and explains how she lost her mother due to the struggles of mental health. Matt goes on to explain his story a little bit, mentioning why they decided to create this sleep pod and how it’s meant to help people, including himself. So far, the sharks are impressed with their idea. With that, the offers and negotiations begin.
Daymond John loves the concept of Hug Sleep. He would like to offer the entrepreneurs $150,000 for a 20% equity in the business; however, Matt and Angie decline and allow the other sharks a moment to present offers. They aren’t willing to let their businesses’ valuation drop that low. Kevin O’Leary speaks up next, offering them $150,000 for a 15% equity. He states that he can add more to the company by lower their customer acquisition cost, although he likes where it’s at now. Matt and Angie continue to hold off on their responses until other sharks propose offers.
Lori Greiner is interested in making a deal with them. She offers them the same deal Kevin made them. Mark Cuban then chimes in to agree with what Angie said during their pitch. He, too, knows of family in need of a Hug Sleep pod. With that, he presents them with two offers. One offer is for $150,000 and a 10% equity, and the other offer is for $300,000 and a 20% equity in the business. Already, Matt and Angie seem to be doing great on the stage, receiving a variety of great offers. Though, the offers and negotiations continue on.
Lori chimes back in to match both of Kevin’s offers; she is now offering them two deals as well. Seeing Lori and Kevin in agreement on two offers brings Daymond to do the same. He matches their two offers as well. Next up, presenting his first offer, Robert Herjavec offers Matt and Angie $300,000 for a 20% equity in Hug Sleep. At this time, all the sharks have presented the duo with offers. This must have overwhelmed the entrepreneurs, as they made a suggestion for the sharks to team up.
Mark and Lori end up teaming, together offering $300,000 for a 20% equity. Following them, Robert, Daymond, Kevin does the same, offering the same deal. This is when Matt and Angie decide to make it known that they came on the show hoping to get a deal with Mark and Lori. With the deal with $300,000 for 20%, not only would that help the duo with their company, but it’d give their company a valuation of $1.5 million. Given that, they accept the offer and leave with a deal with Mark and Lori.
Hug Sleep Now in 2023 – The After Shark Tank Update
Following Matt and Angie’s time on Shark Tank, it appears that their deal with Mark and Lori has closed. They saw a drastic spike in orders, in which they talked about in their update with Shark Tank. During this update, the couple mentions that they have done $4 million in sales just after appearing on the show and their annual revenue was as about $2 million. This spike in sales had easily doubled what they were selling the year before their appearance on Shark Tank.
With the help of Mark and Lori’s investment, Matt and Angie were able to work towards bettering their manufacturing, as well as their marketing. This was great for business considering it boosted their sales once again. In fact, Hug Sleep was featured on TV, where the product was marketed at no cost. Following this free publicity, the couple noticed a lot more traction on their official website, along with 10% of those consumers purchasing a sleep pod. All in all, Hug Sleep remains in business and, as of 2023, have a net worth of about $5 million.