Grypmat – Flexible Tool Tray
DEAL
EPISODE SUMMARY
đź•“ Air Date: November 12, 2017
Asking For:
$200,000 for 10%
Investor:
Lori Greiner, Richard Branson, Mark Cuban (33,3)
Deal:
$360,000 for 30%
PRODUCT SUMMARY
Grypmat is a flexible, nonslip tool tray designed to keep tools and hardware in place on any surface, initially developed for aviation but applicable to various industries.
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Background Story
Tom Burden, an F-16 weapons mechanic in the United States Air Force, faced the challenge of organizing tools on slick surfaces while working on fighter jets. This led him to create Grypmat, a solution born out of the necessity for a tool tray that doesn’t slip. Tom, from the small farm town of Celina, Ohio, always aspired to be an inventor. When faced with the challenge of financing college, he joined the military, where he served for eight years. Grypmat is a result of his innovative thinking and experience as a fighter jet mechanic.
The Product
Grypmat comes in three sizes—small, medium, and large—with a flexible, nonslip design. The small Grypmat has six compartments for organized hardware, the medium has two small compartments and an open field for hand tools, and the large has four small compartments, an open field for hand tools, and handles for easy transportation.
The tray’s silicone-polymer mix makes it heat-resistant up to 500 degrees, suitable for use in various environments, such as under the hood of cars. Grypmat is not limited to aviation; it finds applications in industries like automotive, construction, and even for hobbies like crafting or jewelry making. The product’s success is evident through its sales of 10,000 units, generating $400,000 in revenue within the first 10 months of launch.
How It Went
The company’s position before Shark Tank
Grypmat has sold 10,000 units, accumulating $400,000 in sales within the first 10 months. The company has focused on online sales and trade shows, gaining traction in the aviation industry, with notable customers like NASA. Grypmat’s founder, Tom Burden, has invested $40,000 personally and raised an additional $150,000 through grants and business competitions.
The funds generated have been reinvested in inventory. The company is looking to expand into the automotive industry, and Grypmat has garnered interest from gunsmiths and medical professionals. The product’s success has prompted Grypmat to consider entering retail, although the challenges of dealing with big-box retailers are acknowledged.
The Negotiations:
Grypmat received multiple offers from the Sharks. Daymond John expressed interest due to the potential applications in aviation and offered $200,000 for 25%. Robert Herjavec also made an offer of $200,000 for 20%, emphasizing the product’s potential in various industries. Daymond John revised his offer to $200,000 for 15%, and Mark Cuban matched the offer.
Lori Greiner and Mark Cuban then collaborated, offering $200,000 for 20% but with additional support in terms of inventory systems and distribution. They also planned to utilize Lori’s existing relationships with retailers. Tom Burden countered, suggesting a deal with all three Sharks—Richard, Mark, and Lori—at $360,000 for 30%, which the Sharks accepted.
This deal not only provided the desired investment but also strategic partnerships and expertise to help Grypmat grow. The negotiation showcased Tom’s ability to secure a favorable deal and the Sharks’ recognition of Grypmat’s potential in diverse markets.
