DeskView Window Mounted Standing Desk
DEAL
EPISODE SUMMARY
🕓 Air Date: May 5, 2019
Asking For:
$150,000 for 7,50%
Investor:
Kevin O'Leary
Deal:
$150,000 for 20%
PRODUCT SUMMARY
DeskView is a mountable stand-up desk designed for glass and smooth nonporous surfaces, providing a flexible and minimalist workspace solution.
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Background Story
DeskView, headquartered in Chicago, Illinois, was founded by Mike Bolos and Jason Grohowski. The two entrepreneurs noticed a rising trend in modern office spaces characterized by extensive use of glass. In response to this workplace shift, they conceptualized DeskView, a unique mountable stand-up desk designed for glass and smooth nonporous surfaces. Mike Bolos, armed with a diverse educational background, holds a B.S. with studies at Cornell, Harvard, and Oxford. He further pursued a JD/MBA at the University of Pennsylvania and accumulated professional experience in both commercial litigation and corporate transactional law.
Mike’s journey to DeskView began when he faced health issues from prolonged sitting in an office that couldn’t accommodate a traditional standing desk. Inspired by his floor-to-ceiling windows, he embarked on creating the first prototypes, using $200 in cash for the initial 18 iterations. Jason Grohowski, a commercial real estate broker, came into the picture when he encountered Mike’s innovative prototype. Recognizing the potential market demand for affordable standing desks, Jason joined forces with Mike. His background in dealing with corporate clients and understanding the dynamics of office spaces complemented Mike’s vision for DeskView.
The product idea evolved through Mike’s tinkering and prototyping, driven by a personal need to find a solution to the discomfort caused by prolonged sitting in an office environment. The founders were motivated by the desire to create a flexible, minimalist workspace solution that could cater to the changing dynamics of modern workplaces dominated by glass and open-concept layouts. This convergence of Mike’s health challenge, Jason’s commercial real estate insights, and a shared vision for a versatile standing desk laid the foundation for the creation and development of DeskView.
The Product
DeskView, an innovative mountable stand-up desk, revolutionizes workspace flexibility and adaptability. Engineered with aerospace-grade aluminum and equipped with industrial-grade suction discs, DeskView is specifically designed to adhere to glass and smooth nonporous surfaces. The product provides a minimalist and sturdy platform for users to create their own standing desk, offering an unobstructed view in glass-dominated office environments.
Installation is straightforward, involving the attachment of DeskView to the desired surface using the powerful suction force. The desk can be effortlessly moved and reinstalled elsewhere without leaving any marks, ensuring versatility and convenience for users. The product’s overengineered design allows it to stay securely attached for extended periods, with a demonstrated capacity to hold more weight than typically required.
DeskView caters to both office and home environments. In offices, it functions effectively on external and internal glass walls, transforming traditional closed-off spaces into open-concept, dynamic work areas. At home, it serves as the ultimate minimalist standing desk, providing users the freedom to work or enjoy meals while basking in a preferred view.
DeskView is available in various models, including the Minimalist and Natural retailing for $235, and the clear Baller priced at $265. The product can be purchased directly from DeskView’s website, and the founders are actively exploring opportunities in the business-to-business (B2B) market. With a commitment to quality and functionality, DeskView presents an affordable and stylish alternative to traditional standing desks.
How It Went
The company’s position before Shark Tank
DeskView, since its inception in April 2018, has demonstrated a promising trajectory in terms of sales and market positioning. The company, based in Chicago, Illinois, started by focusing on direct-to-consumer sales, primarily through its own website. Initial performance metrics indicate that DeskView has sold a total of 800 units to date. Recognizing the potential for bulk sales in the business-to-business (B2B) market, DeskView strategically shifted its focus after observing companies purchasing dozens of units. The founders actively participated in a large furniture expo in Chicago, showcasing DeskView’s adaptability. This exposure led to increased interest and attention from potential B2B clients.
The company has identified opportunities for expansion and is in negotiations with multi-billion-dollar distributors. These potential collaborations could significantly impact DeskView’s market reach and sales volume. The founders are optimistic about the product’s potential, with projections indicating substantial growth in the coming years. The founders have engaged in discussions with major distributors, emphasizing DeskView’s potential to move 900 units a month next year. This underscores the company’s ambition to establish significant partnerships in the retail and distribution sectors.
In terms of funding, the company initially sought $150,000 for 7.5% equity on the “Shark Tank” episode. The negotiation resulted in an offer from Kevin O’Leary for $150,000 in exchange for 20% equity. The founders accepted this offer, seeing Kevin as a valuable partner who could contribute to DeskView’s growth and distribution strategy. As DeskView continues to explore opportunities in the B2B market and collaborations with major distributors, the company’s financial health and market position are poised for further growth and development.
The Negotiations:
The negotiations for DeskView on “Shark Tank” showcased a dynamic exchange between the founders, Mike Bolos and Jason Grohowski, and the sharks. The pitch began with the founders seeking $150,000 for 7.5% equity in their mountable stand-up desk company. Kevin O’Leary was quick to make a significant offer, proposing $150,000 for 15% equity. However, Lori Greiner expressed interest in becoming a third partner for $150,000 but at a higher equity stake of 33.3%.
As negotiations progressed, Kevin modified his offer, increasing his equity ask to 20%. Barbara Corcoran and Robert Herjavec opted out, expressing concerns about the product’s suitability for certain markets. Jason and Mike evaluated the offers on the table, considering the expertise and value each shark could bring to DeskView. Ultimately, the founders chose to accept Kevin O’Leary’s offer of $150,000 for 20% equity. This decision was based on their belief that Kevin could significantly contribute to DeskView’s growth and distribution strategy.
Lori’s initial interest in a higher equity stake did not align with the founders’ vision, leading them to choose Kevin as the strategic partner. The negotiation highlighted the founders’ strategic thinking, weighing the offers against their business goals and the sharks’ perceived value. Kevin’s expertise and willingness to adjust his terms played a crucial role in securing the deal. The negotiation concluded with an agreement that positioned DeskView for potential growth and success under Kevin O’Leary’s guidance.
