Dreamland Baby – Weighted Sleep Sacks
DEAL
EPISODE SUMMARY
🕓 Air Date: May 15, 2020
Asking For:
$100,000 for 10%
Investor:
Lori Greiner
Deal:
$100,000 for %
PRODUCT SUMMARY
Dreamland Baby is a weighted blanket sleep sack designed to help babies feel calm, fall asleep faster, and stay asleep longer by increasing serotonin and melatonin through deep touch stimulation.
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Background Story
Tara Williams and her husband, Rob Williams, created Dreamland Baby out of necessity. Struggling with their son Luke waking up every hour and a half, they sought a solution. Tara, a mother of four with a background in the medical device space, came up with the idea for a weighted blanket sleep sack after a near-car accident prompted a desperate plea for a solution.
With a layoff hitting both Tara and her husband, they used the stipend from Tara’s maternity leave to kickstart the business. The idea stemmed from a night when they placed a heavy throw blanket on their son, witnessing an immediate calming effect. Tara, leveraging her medical device background, collaborated with a researcher who had conducted a clinical trial on weighted blankets, ensuring the safety of Dreamland Baby.
The Product
Dreamland Baby is a sleep sack with poly pellet beads, similar to those found in bean bags. These beads are non-toxic and food-grade, providing a gentle weight that promotes serotonin and melatonin production.
The sleep sack comes in two sizes – small (0-6 months) and medium (6-12 months). The beads offer deep touch stimulation, contributing to stress reduction and increased relaxation for babies. Priced at $79, the production cost is $13.60 for the small and $12.20 for the medium.
How It Went
The company’s position before Shark Tank
Dreamland Baby has generated approximately $30,000 in sales year to date, with a significant portion coming from a Kickstarter campaign that raised $25,000. The website had been live for three weeks at the time of the pitch. Tara had initially funded the business using $14,000 from her maternity leave stipend, which was a secret from her husband. The company had a patent-pending, and Tara had partnered with a researcher who had conducted a clinical trial on weighted blankets to ensure safety.
The Negotiations:
The negotiation saw Tara making a deal with Lori Greiner, who offered $100,000 for 22.5% equity. While Daniel declined, Robert commended Tara’s entrepreneurial spirit but opted out, citing the business’s current size. Lori’s offer was initially countered by Tara for the same deal at 20%, prompting a further counter from Lori at 22.5%.
After some back-and-forth, Tara accepted Lori’s offer, expressing excitement about the partnership and future success, envisioning Dreamland Baby reaching $90 million in sales. Lori saw potential in licensing the product to established baby product manufacturers or companies in the baby arena, aiming to facilitate a significant deal for Tara. Ultimately, a deal was struck at 22.5% equity for $100,000 with Lori Greiner.
