Keen Home Smart Vents
DEAL
EPISODE SUMMARY
🕓 Air Date: February 20, 2015
Asking For:
$750,000 for 10%
Investor:
Robert Herjavec
Deal:
$750,000 for 13%
PRODUCT SUMMARY
The Keen Vent is a wirelessly connected air vent that intelligently redirects airflow throughout a home, allowing users to control it through a smartphone app.
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Background Story
Keen Home, headquartered in the bustling city of New York, was founded by the dynamic duo of Ryan Fant and Nayeem Hussain. The story of Keen Home begins with the co-founders recognizing a significant gap in the way households manage heating and cooling. Observing that the average U.S. household expends a substantial portion of its energy bill on climate control, Ryan and Nayeem envisioned a solution that could revolutionize this process.
The spark for their innovative product, the Keen Vent, ignited from the belief that relying on a centralized thermostat for individual room needs was an outdated approach. They aimed to provide homeowners with a smarter, more efficient way to control airflow throughout their homes. Inspired by the concept of individualized climate management, the Keen Vent was conceptualized as a wireless, smartphone-controlled air vent. The ease of installation, where customers can replace existing vents with the Keen Vent, was a crucial aspect of their design.
Once installed, the vent seamlessly connects to the internet, offering users the ability to customize airflow at their fingertips. This visionary approach of enhancing existing smart thermostat systems led to the development of a product that not only complements but significantly amplifies the efficiency of home climate control. Keen Home’s journey embodies the fusion of technological innovation and a commitment to creating a more energy-efficient and user-friendly living environment.
The Product
The Keen Vent, a groundbreaking product from Keen Home, is a wireless air vent designed to intelligently manage and redirect airflow throughout homes. Installation is user-friendly – homeowners simply replace their existing vents with the Keen Vent, which seamlessly connects to the internet upon installation. The magic happens through a smartphone app, empowering users to take control of their home’s climate with unprecedented ease.
This innovative product acts as a complement to existing smart thermostats, such as Nest, enhancing their capabilities by providing room-specific climate control. The Keen Vent allows users to fine-tune airflow based on individual preferences, creating a more personalized and energy-efficient environment.
The benefits extend beyond comfort, as the Keen Vent also promises substantial energy savings. With the average U.S. household dedicating a significant portion of its energy bill to heating and cooling, Keen Home positions itself as a cost-effective solution. The product not only offers a practical solution to homeowners but also proves to be a wise investment, promising a two-year return on investment according to their estimates.
Keen Vents are available for purchase online, providing customers with convenient access to this cutting-edge technology. The combination of user-friendly installation, energy efficiency, and smartphone-controlled customization positions the Keen Vent as a game-changer in home climate management.
How It Went
The company’s position before Shark Tank
Keen Home has demonstrated robust performance, positioning itself as a pioneering force in the smart home technology market. With headquarters in New York, the company has strategically aligned itself with key partners, including the renowned home improvement retailer Lowe’s. This partnership has paved the way for a two-year exclusivity deal in the home improvement channel, with Keen Home successfully pre-selling 35,000 units to Lowe’s, a testament to the retailer’s confidence in the product. The company’s financial health received a significant boost through strategic funding initiatives.
Keen Home’s journey began with a personal investment of $50,000 from the co-founders, followed by a successful participation in the Techstars accelerator program, where they raised an additional $120,000. In May, Keen Home closed a seed round, securing $1.5 million in funding. This funding, coupled with the founders’ personal investment, has allowed the company to drive innovation, develop its product, and establish a foothold in the market. Keen Home’s strategic approach to securing funding and partnerships has likely contributed to a healthy financial position.
The company’s organizational structure and available capital indicate a well-managed entity poised for growth. Keen Home’s focus on creating a product that complements existing smart home technologies, coupled with strategic partnerships and funding, positions it favorably in the competitive landscape of the home automation market. As the company continues to innovate and expand its product offerings, Keen Home is well-positioned to capitalize on the growing demand for smart home solutions.
The Negotiations:
The negotiation process for Keen Home on Shark Tank unfolded with a dynamic interplay of offers and counteroffers, showcasing the co-founders’ strategic acumen and the sharks’ keen business instincts. Ryan Fant and Nayeem Hussain entered the tank seeking $750,000 in exchange for 10% equity in their company, Keen Home. The initial offers came from Kevin O’Leary and Daymond John, both proposing $750,000 for 25% equity.
However, Robert Herjavec, sensing an opportunity, stepped in with a unique proposition, offering $750,000 for 13% equity. The co-founders emphasized the importance of finding a real partner for their company, and Robert’s understanding of their brand vision sealed the deal. They accepted Robert’s offer, giving him a 13% stake in Keen Home. The negotiation also saw additional offers from other sharks. Daymond John and Kevin O’Leary collaborated on a joint offer of $750,000 for 20% equity, attempting to adjust terms to address concerns about a down round.
Lori Greiner, recognizing potential in the compliance aspect of the industry, made an offer of $750,000 for 20%. Ultimately, the co-founders chose Robert’s offer, valuing his strategic insights and brand-building expertise. The negotiation process highlighted the sharks’ diverse perspectives on the company’s value and future prospects. It concluded with a mutually beneficial deal that not only secured the funding Keen Home sought but also brought onboard a strategic partner in Robert Herjavec, aligning the company for continued growth and success.
