FORT Magnetic Pillow
NO DEAL
EPISODE SUMMARY
🕓 Air Date: April 1, 2022
Asking For:
$500,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
FORT is a modular, magnet-based system for building pillow forts, aiming to provide a convenient and mess-free experience for families.
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Background Story
Conor Lewis, hailing from St. Louis, Missouri, is the mind behind FORT, a modular, magnet-based system designed to simplify the process of building pillow forts. Prior to his entrepreneurial venture, Conor worked in the field of marketing until he encountered job loss during the height of the COVID-19 pandemic in April of the preceding year. Despite his wife’s stable corporate job as a Certified Public Accountant (CPA), Conor was determined to pursue his long-standing aspiration of becoming an entrepreneur.
The inspiration for FORT struck him during the joyous yet chaotic moments spent with his daughter, as they constructed pillow forts in their living room. Faced with the familiar challenge of preserving household items like cushions and blankets, Conor was compelled to find a solution that would make fort-building more manageable and less cumbersome. Combining his marketing background with a desire to innovate, he conceptualized a versatile and durable magnetic system that would allow families to construct pillow forts without the traditional hassles of setup and cleanup.
With a focus on creating a product that offered both convenience and durability, Conor aimed to enhance the fort-building experience for families everywhere. This ambition, coupled with the determination to overcome the challenges brought about by the pandemic, led Conor to embark on the journey of establishing FORT as a pioneering solution for hassle-free pillow fort construction.
The Product
FORT presents a groundbreaking, magnet-based pillow fort system that revolutionizes the traditional fort-building experience. Comprised of stackable, wipeable components, FORT’s magnetic system offers a hassle-free assembly process, enabling users to construct and deconstruct pillow forts with ease. The durable yet lightweight pieces ensure sturdiness while maintaining portability, catering to the dynamic needs of families seeking an engaging and mess-free activity.
The modular design allows for creative customization, empowering users to construct various fort configurations, from simple designs to intricate structures, fostering imaginative play for children and providing a bonding experience for families. With its wipeable feature, the FORT system ensures effortless maintenance, eliminating the need for extensive cleaning after playtime.
FORT’s comprehensive set includes an assortment of components such as cushions and magnets, enabling users to build sturdy and secure structures without the limitations posed by conventional fort-building methods. FORT’s innovative design, user-friendly features, and emphasis on durability and creativity position it as a must-have for families seeking an engaging and convenient activity solution.
How It Went
The company’s position before Shark Tank
FORT’s performance has showcased significant growth and promise, primarily driven by the success of its Kickstarter campaign, which yielded impressive sales figures of $2 million within just 10 hours and a total campaign revenue of $3.1 million. The company has experienced rapid expansion and gained a considerable following among families seeking an innovative and hassle-free fort-building solution. While FORT primarily focuses on direct-to-consumer sales, it has forged strategic partnerships with suppliers and manufacturers, ensuring the efficient production and delivery of its magnetic fort-building system.
These collaborations have enabled FORT to maintain a steady supply chain, despite the operational and shipping challenges faced due to high demand and the product’s substantial size. As of now, FORT has not disclosed any specific information regarding its wholesalers or distribution channels beyond its direct-to-consumer approach. The customer base for FORT predominantly comprises families, parents, and individuals seeking interactive and creative activities for children. The company’s customer-centric approach emphasizes the importance of providing a convenient and enjoyable fort-building experience for its target audience.
In terms of funding, FORT initially relied on Conor Lewis’s severance funds and the involvement of a business partner who contributed operational equity. The company’s financial performance has been marred by initial pricing challenges, leading to potential profit losses as the cost of goods and shipping expenses impacted the overall revenue. Despite these setbacks, FORT remains resilient, actively seeking solutions to overcome the financial hurdles and ensure sustainable growth. With the company’s current structure, it appears that Conor Lewis plays a pivotal role as the founder, driving the vision and direction of FORT.
The Negotiations:
During the negotiations on Shark Tank, Conor Lewis presented FORT’s innovative pillow fort system, seeking a $500,000 investment in exchange for a 10% stake in the company. However, concerns were raised regarding the high cost of goods and the decision to use magnets instead of the more cost-effective Velcro, especially given the significant price point of $499 for the product set.
Although the Sharks acknowledged Conor’s honesty and humility, they expressed apprehension about the company’s financial health and its dependence on the success of the Kickstarter campaign. Kevin O’Leary, emphasizing the unwise spending on expensive magnets, was the first to opt out. Mark Cuban and Emma Grede, while recognizing Conor’s potential for overcoming the challenges, ultimately decided to pass on the investment due to the unproven nature of the business and the potential high return rates.
Despite Barbara Corcoran’s praise for Conor’s character and his capacity for resilience, she also opted out, acknowledging the tough situation the company was in. Robert Herjavec, acknowledging the difficulty of the circumstances, expressed a desire to invest but was unable to bridge the gap due to the required investment size. The negotiations concluded without a deal being struck, leaving Conor to navigate the company’s financial challenges and operational hurdles on his own, though the feedback from the Sharks served as valuable insights for the future direction of FORT.
