Storm Shelter Bed By Lift Systems
DEAL
EPISODE SUMMARY
🕓 Air Date: January 27, 2019
Asking For:
$550,000 for 15%
Investor:
Mark Cuban
Deal:
$550,000 for 25%
PRODUCT SUMMARY
Life Lift Systems presents the Vortex Vaults telescoping tornado shelter that mounts under a mattress, providing a quick and convenient safe space during tornadoes.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Levi Wilson and Tim Todd, hailing from Oklahoma City, Oklahoma, have channeled their firsthand experience with the frequent tornadoes in the region into the creation of Life Lift Systems and its innovative product, the Vortex Vaults telescoping tornado shelter. Both founders bring a unique blend of skills to the table. Levi Wilson is the owner of a machine shop, showcasing a strong technical background and expertise in fabrication. On the other hand, Tim Todd handles the marketing aspect of the venture, contributing valuable insights into reaching the target audience effectively.
The inception of the Vortex Vaults idea was fueled by the duo’s deep understanding of the challenges posed by traditional tornado shelters. Living in an area where tornadoes are a recurrent threat, they recognized the shortcomings of existing above-ground and below-ground shelters – either taking up valuable floor space or being inaccessible and prone to issues like leaks and pests. Motivated by a desire to provide a more practical and space-friendly solution, Wilson and Todd conceptualized the Vortex Vaults telescoping tornado shelter.
The unique design, which mounts directly under a mattress, ensures quick and easy access during tornadoes or other emergency situations, offering a level of convenience and safety that traditional shelters often lack. The founders leveraged their respective skills in manufacturing and marketing to bring this innovative product to market, aiming to address a critical need in tornado-prone areas while revolutionizing the concept of personal safety during extreme weather events.
The Product
The Vortex Vaults telescoping tornado shelter by Life Lift Systems is a groundbreaking solution designed to provide quick and accessible protection during tornadoes and home invasions. Mounting directly beneath a mattress, this shelter offers a unique and space-efficient alternative to traditional above-ground or below-ground options.
Activated in approximately 60 seconds, the shelter can be easily deployed in response to tornado warnings or other emergencies. Its telescoping design ensures that it remains unobtrusive when not in use, allowing users to reclaim valuable floor space. The unit has been rigorously tested and proven to withstand the force of an EF5 tornado, offering a secure haven for individuals and families.
The product line extends beyond the mattress-mounted version, with plans for additional variations like a pool table, kitchen island, and workbench, catering to diverse user preferences and applications.
Life Lift Systems aims to make the Vortex Vaults accessible through various channels. While initially selling directly to consumers, they are transitioning into the wholesale market, setting up dealers across the nation. The retail price for the queen and king-size units, fully installed, is in the $6,000 range. The company has already seen success, selling 119 units in the last 3.5 to 4 months, primarily through social media advertising, with plans to expand their reach through strategic partnerships and wholesale distribution.
How It Went
The company’s position before Shark Tank
As of the latest update, Life Lift Systems demonstrates a promising trajectory in terms of sales and market penetration. With 119 units sold within the last 3.5 to 4 months, the company has generated approximately $550,000 in revenue, showcasing a strong initial market response. The majority of these sales have been facilitated through social media advertising, particularly on platforms like Facebook. Life Lift Systems is actively transitioning from a direct-to-consumer model to engaging with the wholesale market. They are in the process of setting up dealers across the nation, and discussions with potential partners, including a chain with 140 locations, indicate a strategic expansion plan.
In terms of funding, the founders, Levi Wilson and Tim Todd, have invested a significant amount of their own capital, totaling $250,000, reflecting their commitment to the venture. While the specific details of profits and losses are not disclosed in the provided information, the company’s financial health seems positive, given the robust sales figures in a relatively short period. The company’s capital structure and organizational details are not explicitly outlined, but it is mentioned that Life Lift Systems is actively seeking installers across the nation, suggesting a decentralized approach to installations.
The founders have demonstrated an openness to learning and adapting their business model, evident in their exploration of the wholesale market to scale their operations. Overall, Life Lift Systems appears to be in a favorable position with a product that has garnered attention and sales traction. As they continue to evolve their strategy, particularly in wholesale distribution and potential partnerships, the company is poised for further growth and market expansion.
The Negotiations:
The negotiation process for Life Lift Systems on “Shark Tank” unfolded as a compelling and competitive exchange. Levi Wilson and Tim Todd entered the Tank seeking $550,000 in exchange for 15% equity in their company, Life Lift Systems, which had developed the innovative Vortex Vaults telescoping tornado shelter. Mark Cuban and Lori Greiner emerged as the primary Sharks interested in securing a deal with the founders. Mark Cuban offered the full amount, $550,000, but in exchange for a slightly larger equity stake of 25%.
Lori Greiner, on the other hand, presented a unique proposition. She offered the same $550,000 but proposed a 25% equity stake alongside a $100 royalty for each unit sold. The negotiation took an interesting turn as the founders deliberated between Cuban’s straightforward equity offer and Greiner’s combination of equity and royalty. Ultimately, the founders decided to accept Mark Cuban’s offer of $550,000 for 25% equity, opting for a more conventional investment structure. The negotiation showcased the Sharks’ concerns about the company’s pricing strategy, scalability, and the need for higher profit margins.
Cuban’s offer, emphasizing his willingness to finance purchase orders and introduce the product to home builders, proved compelling enough for the founders to align with his vision for the company’s growth. The negotiation process highlighted the founders’ commitment to their product, the Sharks’ strategic considerations, and the delicate balance between securing adequate funding and managing equity dilution. Ultimately, Life Lift Systems left the Tank with a significant investment from Mark Cuban, positioning them for accelerated growth and market expansion with a seasoned entrepreneur on their team.
