Circadian Optics – Therapy Lamps
DEAL
EPISODE SUMMARY
🕓 Air Date: October 6, 2019
Asking For:
$750,000 for 10%
Investor:
Mark Cuban, Lori Greiner (50/50)
Deal:
$750,000 for 20% + extra $50,000
PRODUCT SUMMARY
Circadian Optics produces bright-light therapy lamps that mimic the color and brightness of the sun to improve physical and mental health by addressing the lack of sunlight exposure, especially in dark office environments.
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Background Story
Amber Leong, originally from Malaysia and now residing in Minnesota, was inspired to create Circadian Optics after experiencing the negative effects of the lack of sunlight in her corporate job. Recognizing the importance of circadian rhythm and light on health, she initially purchased a light therapy lamp but faced criticism from coworkers due to its unappealing design. Identifying a gap in the market for an effective yet stylish light therapy lamp, Amber founded Circadian Optics with a vision to bring more light into people’s lives.
The Product
Circadian Optics’ bright-light therapy lamps aim to address the modern-day issue of insufficient sunlight exposure. By mimicking the color and brightness of the sun, these lamps help users regulate their circadian rhythm and improve overall well-being.
The product is positioned as a “mini sun on your desk,” providing a convenient solution for individuals spending extended hours indoors. Sold online, the lamps have an average price of $57.99 with a healthy 70% profit margin.
The company’s sales have reached $7.4 million in its lifetime, with $4 million in sales in the last year. The lamps are designed to be both effective and stylish, distinguishing them from traditional, less aesthetically pleasing light therapy options.
How It Went
The company’s position before Shark Tank
Circadian Optics, a $5 million company, has achieved notable success with a focus on online sales. With a lifetime sales figure of $7.4 million and $4 million in the last year alone, the company has demonstrated its market potential. The average online sale is $57.99, boasting a commendable 70% profit margin.
All sales are conducted online, and the company’s projections for the current year estimate $5.6 million in sales, with a net profit of $1.3 million after accounting for tariffs. The founder, Amber Leong, seeks a strategic partner to assist in taking the company to the next level, particularly in entering the retail market.
The Negotiations:
The Sharks were impressed with Circadian Optics’ performance and Amber’s personal story. After revealing a lifetime sales figure of $7.4 million and current-year projections of $5.6 million, offers were made. Lori Greiner and Mark Cuban jointly offered $750,000 for a 20% stake in the company. Not to be outdone, Barbara Corcoran and Kevin O’Leary matched the offer with an additional $50,000 for Amber’s parents.
Despite the competitive offers, Amber chose to go with Lori and Mark, expressing a preference for them as business partners. The deal was sealed at $750,000 for a 20% stake, with both Lori and Mark expressing excitement and congratulating Amber on one of the best presentations on the show. Amber, expressing gratitude and disbelief, highlighted her humble background and the magnitude of her dreams, emphasizing the significance of her journey from a small town in Malaysia to pitching to the Sharks in L.A.
