Cellhelmet Phone Cases
NO DEAL
EPISODE SUMMARY
🕓 Air Date: March 8, 2013
Asking For:
$160,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Cellhelmet offers protective accessories for mobile devices bundled with accidental damage coverage, aiming to revolutionize mobile device protection.
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Background Story
Cellhelmet founders, Mike Kane and David Artuso, hail from Pittsburgh, Pennsylvania, and conceived the idea for Cellhelmet out of frustration with the limitations of existing mobile device protection solutions. Both entrepreneurs brought diverse backgrounds to the table, with experience in manufacturing and business development.
The idea stemmed from their observation that the mobile protection industry often left consumers with inadequate options, either through overpriced accessories or exorbitant insurance premiums. Determined to disrupt the market, they developed Cellhelmet, the world’s first brand of accessories to incorporate a safety net of accidental damage coverage.
The Product
Cellhelmet’s flagship product is a smartphone case that comes with a unique proposition – it includes a one-year safety net of accidental damage coverage upon registration.
Priced at $44.99, the case offers consumers peace of mind by providing repair or replacement services for damaged devices within three business days for a $50 fee.
The company emphasizes transparency and simplicity in its model, ensuring customers understand the terms upfront and have easy access to support through a 24/7 hotline.
How It Went
The company’s position before Shark Tank
Having launched just four months prior to their appearance on Shark Tank, Cellhelmet had already generated $60,000 in revenue, selling 1,300 units directly to consumers. Despite being newcomers in the industry, they demonstrated early traction and a commitment to customer satisfaction by handling repairs themselves, albeit at an average cost of $77 per repair.
While the business model raised concerns among the sharks regarding sustainability and potential exploitation by unethical consumers, Cellhelmet remained confident in their profitability and ability to carve out a niche in the market.
The Negotiations:
Despite their enthusiasm and early success, the sharks ultimately passed on investing in Cellhelmet. Concerns over the long-term viability of the business model, potential competition from larger players, and ethical considerations regarding consumer behavior led to all sharks declining to offer a deal. While disappointed by the outcome, Kane and Artuso remained optimistic about the future of Cellhelmet and expressed gratitude for the opportunity to pitch their innovative product on the show.
