ALL33 BackStrong Office Chair
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 8, 2021
Asking For:
$500,000 for 2,50%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
All33 offers a revolutionary ergonomic chair with patented Sit-In-Motion Technology designed to improve posture and reduce discomfort associated with prolonged sitting.
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Background Story
All33’s CEO, Bing Howenstein, had been a patient of Dr. Dennis Colonello, who had developed the unique chair technology, for over 20 years. Impressed by the potential of the chair, Howenstein decided to help bring it to market through a Kickstarter campaign, which generated $800,000 in sales. As an entrepreneur experienced in product development and sales, Howenstein recognized the chair’s potential to address the growing concern of sedentary lifestyles and the health issues associated with it.
The Product
All33’s chair features patented Sit-In-Motion Technology, which allows the chair to move like a person does while sitting. This technology engages all 33 vertebrae in the spine, promoting better posture and reducing discomfort.
Users can experience a sensation similar to standing, even while sitting. The chair is priced at $799, significantly more affordable than other premium ergonomic chairs on the market.
How It Went
The company’s position before Shark Tank
In the pitch, Howenstein mentioned that All33 had sold about $3.2 million worth of chairs that year and was on track to reach $5.5 million in sales. The company had achieved slight profitability in the second quarter. They were valued at $20 million based on their sales performance and comparisons to other companies in the same space. However, the Sharks questioned this valuation and expressed concerns about the competitive landscape.
The Negotiations:
The Sharks were skeptical about the $20 million valuation and the 2.5% equity offered for $500,000. Barbara Corcoran criticized Howenstein’s role as a “salesman” and felt the valuation lacked credibility. Kevin O’Leary expressed discomfort with the valuation but expressed interest in purchasing a chair at full price. Lori Greiner and Mark Cuban were both concerned about the valuation and didn’t see the chair as a category-defining product.
Robert Herjavec also found the valuation unrealistic and decided not to invest. Ultimately, none of the Sharks made an offer, and Howenstein left the tank without securing a deal. Despite the Sharks’ reservations about the valuation and equity offer, he remained committed to building the company and expanding its presence in the market.
