Urbio Modern Wall Planters
DEAL
EPISODE SUMMARY
🕓 Air Date: January 11, 2013
Asking For:
$300,000 for 12%
Investor:
Lori Greiner
Deal:
$300,000 for 15%
PRODUCT SUMMARY
Urbio is a modern vertical garden system designed for urban living, featuring fully modular magnetic pots that attach to any metal surface.
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Background Story
Beau Oyler and Jared Aller, both industrial designers, founded Urbio to address the challenge of incorporating indoor plants into small living spaces like their own. Drawing on their design expertise and noticing the lack of suitable solutions in the market, they conceived the idea of Urbio, a vertical garden system with magnetic pots.
Their combined experience in product design for major retailers like Williams-Sonoma, Best Buy, and Target provided them with the skills and insights necessary to develop a consumer product company. Despite facing initial space constraints, they managed to launch Urbio and garner significant attention from media outlets and customers worldwide within a short period, showcasing the product’s appeal and market potential.
The Product
Urbio is a versatile vertical garden system that offers a solution for urban dwellers seeking to incorporate greenery into their living spaces. The system features modular magnetic pots that can be easily attached to any metal surface, making it suitable for various rooms such as the kitchen, bathroom, and office.
Each pot is designed to hold indoor plants, herbs, or small decorative items, providing users with a customizable and space-saving gardening solution. Urbio’s innovative design eliminates the need for bulky traditional planters, offering a sleek and modern alternative for plant enthusiasts.
The pots are available in different sizes and styles, catering to different preferences and room aesthetics. Customers can purchase Urbio products through the company’s website or select brick-and-mortar stores, with prices ranging from $15 to $35 per vessel, along with additional costs for backplates and accessories.
How It Went
The company’s position before Shark Tank
Urbio has achieved significant traction since its launch, with sales totaling $125,000 within the first four months. The company has established a presence in over 50 countries, showcasing the global demand for its innovative gardening solution. While primarily selling through their website and a network of approximately 25 brick-and-mortar stores, Urbio is actively seeking partnerships with larger retailers to expand its distribution channels.
The company’s margins are favorable, with a 75% margin on certain products, indicating strong profitability potential. Urbio is focused on scaling its operations to meet increasing demand, with plans to utilize additional funding for inventory expansion and fulfillment. The team consists of eight dedicated designers who continuously innovate and refine the product line, ensuring Urbio remains competitive in the market.
The Negotiations:
The negotiation process saw multiple offers from the sharks, including Kevin O’Leary’s offer of $300,000 for 20% equity with a stipulation against taking salaries, Robert Herjavec’s offer of $400,000 for 20% with $100,000 designated for hiring a full-time executive, and Lori Greiner’s offer of $150,000 for 15%.
Ultimately, Beau and Jared accepted Lori’s offer, citing her expertise in retail partnerships and her commitment to helping the company secure a significant purchase order from The Container Store. Despite Daymond John’s critique of the valuation, the founders valued Lori’s offer due to its alignment with their growth strategy and vision for Urbio.
