The Beebo
DEAL
EPISODE SUMMARY
🕓 Air Date: September 25, 2015
Asking For:
$200,000 for 20%
Investor:
Lori Greiner, Ashton Kutcher (50/50)
Deal:
$200,000 for 30%
PRODUCT SUMMARY
The Beebo is a pediatrician-approved device that enhances bottle-feeding by freeing up a parent's hand during feeding, allowing for activities like reading or caressing the baby.
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Background Story
Martin Hill, an electrical engineer by trade, created The Beebo to address the challenge of bottle-feeding his son, Jacob. Observing that Jacob was most relaxed when being read to, Martin developed the prototype in his garage to enhance the bottle-feeding experience. The product’s soft, watertight, flexible foam design allows it to serve as an extra hand, enabling parents to read, caress, or enjoy family meals while feeding.
The name “Beebo” emerged after Martin initially called it “The Booby,” which got vetoed by his wife. The Beebo started gaining traction after Martin’s initial investment of $180,000, and they had sold $20,000 worth of units by the time of the pitch. The product was conceived out of personal need, and Martin’s background as an electrical engineer played a crucial role in its development.
The Product
The Beebo is a hands-free bottle holder designed to make bottle-feeding easier for parents. Pediatrician-approved and made from soft, watertight, flexible foam, the device is worn over either shoulder. Users can insert the baby’s bottle into The Beebo and rotate it to the desired feeding angle.
The flexibility of the material allows for easy adjustment, and the bottle can be rotated up and out of the way for activities like burping or playtime. The product provides parents with a free hand during feeding, allowing them to engage in activities such as reading, caressing, or enjoying family meals together.
The device accommodates various bottle brands, addressing the preferences of different babies. With an MSRP of $39.95, the cost per unit to Martin is $10.86. Despite initial challenges in packaging design, Martin expresses the intention to do a complete brand refresh with the funding received.
How It Went
The company’s position before Shark Tank
By the time of the pitch, The Beebo had sold about $20,000 worth of units since February, with a manufacturing cost per unit of $10.86. Martin invested $180,000 in the business from the beginning. The company had not entered the retail market yet but had received interest from big-box retailers. The goal for the first year was set at 14,000 units, constrained by manufacturing limitations.
The company was experiencing a growing demand, having doubled sales from February to March and attracting attention from potential retail partners. The utility patent for The Beebo was fully issued, providing protection for the product’s unique design. Martin expressed a desire to ramp up sales in big-box retail in the coming year. The business was positioned for growth, with plans for a brand refresh and potential entry into retail channels.
The Negotiations:
The negotiations resulted in a deal with Ashton Kutcher and Lori Greiner for $200,000 at a 30% equity stake. However, Kevin O’Leary also made an offer of $200,000 for a higher equity share of 33.3%. In the end, Martin accepted the deal with Ashton Kutcher and Lori Greiner, splitting the equity equally between them (15% each). Lori emphasized her expertise in marketing and packaging, while Ashton’s role as a new father with social and marketing connections was highlighted.
The negotiations reflected the sharks’ recognition of the product’s potential, with both Lori and Ashton bringing valuable skills to help grow the business. The deal marked a successful outcome for Martin, securing funding and partnerships with experienced sharks to propel The Beebo into the market.
