SignalVault – Credit Card Protector
DEAL
EPISODE SUMMARY
🕓 Air Date: September 25, 2015
Asking For:
$200,000 for 12.5%
Investor:
Robert Herjavec, Lori Greiner (50/50)
Deal:
$200,000 for 25%
PRODUCT SUMMARY
SignalVault is a credit- and debit-card protector that uses e-field technology to make your information invisible to hackers, preventing identity theft and unauthorized scanning.
WATCH HERE
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Background Story
Chris Gilpin, the President of SignalVault LLC, presents his product on Shark Tank. As an identity theft and computer crimes expert, he highlights the vulnerability of credit and debit cards to hackers who can steal information using readily available devices. He introduces SignalVault as a solution and demonstrates its effectiveness in protecting cards from scanning.
Chris started the company a year and nine months prior and has sold around 45,000 units, generating over $300,000 in sales. He initially invested $1 into the company, with a serendipitous win of $8,000 from a lottery ticket, funding the prototype development.
The Product
SignalVault is a small device with e-field technology that, when placed near credit or debit cards in a wallet, makes the information on the cards invisible to RFID scanners. Unlike other anti-hacking solutions, SignalVault doesn’t require charging or batteries and fits in any wallet.
It is sold for $14.95 each, with a production cost of 75 cents. Chris has sold 45,000 units primarily through his website. The product addresses the growing issue of credit and debit card fraud, with $8 billion in losses annually in the United States.
How It Went
The company’s position before Shark Tank
SignalVault LLC, founded by Chris Gilpin, had achieved notable success in its year and nine months of existence. With sales of over 45,000 units and total revenue exceeding $300,000, the company demonstrated a strong demand for its product. Chris started the company with a personal investment of $1, and the success of SignalVault can be partially attributed to his background as an identity theft and computer crimes expert.
The product’s pricing strategy, offering SignalVault at $14.95 with a production cost of 75 cents, contributed to healthy profit margins. Chris primarily sold the product through his website, showcasing effective direct-to-consumer sales. However, he identified the need for additional capital and expertise to scale the business further and address the widespread issue of credit and debit card fraud, which accounts for $8 billion in losses annually in the United States.
The Negotiations:
The negotiations for SignalVault involved three Sharks – Robert Herjavec, Lori Greiner, and Mark Cuban. The initial ask was $200,000 for 12.5% equity, valuing the company at $1.6 million. Mark Cuban was the first to express concern about the challenges of transitioning from a consumer product to enterprise sales and eventually opted out of the deal. Lori Greiner recognized the simplicity of the product and its potential in various retail channels, emphasizing her expertise in taking it to market through QVC, Bed Bath & Beyond, and other retailers.
Robert Herjavec, an internet-security expert, expressed his interest in SignalVault and saw it as part of a broader security brand. He offered $200,000 for 15% equity and outlined a strategy to bring SignalVault into data centers, adding value beyond the consumer market. Lori Greiner countered with an offer of $200,000 for 18%, focusing on her ability to showcase the product on QVC and drive sales through various retail channels.
Ashton Kutcher, who initially showed interest, dropped out, expressing concerns about the competition and market dynamics. In the end, Chris accepted the joint offer from Robert Herjavec and Lori Greiner. They agreed to invest $200,000 for 25% equity, providing not only capital but also leveraging their respective strengths in enterprise security and retail distribution to propel SignalVault into a prominent position in the market. The negotiation ended with excitement and optimism as Chris celebrated securing a deal with his dream Sharks.
