InchBug Shark Tank Update – InchBug Net Worth

Brenda Lee Feldman arrived at Shark Tank Season 7, Episode 25, to seek investment for her company, InchBug. The company sold customized bands on the official website, but the owner planned to adopt the retail business model for a newly developed product. The product was My Drinky, a two-piece juice box holder.

The company did perform well with its revenue in millions. However, the Sharks were not very impressed by Brenda’s plans. Did Brenda convince the Sharks to invest, or did she blow it up? Find out what happened on Shark Tank Season 7, Episode 25.

InchBug Net Worth

As per Brenda’s ask, InchBug had a valuation of $4 million. The valuation was correct because the company had sold $15 million worth of Orbit Lebel and $50 million worth of My Drinky. None of the Sharks had a problem with the valuation, but the retail model. Even Kevin did not change the worth of the business when he offered Brenda $400,000. Currently, the business has a net worth of $5 million.

What Happened To InchBug After Shark Tank?

Brenda went on with her plans to sell My Drinky through retail outlets. She even got My Drinky listed on Walmart and Amazon. However, the product has been out of stock on both platforms for a long time. The product is missing on the official website, too. These indicators suggest that Sharks were right to stop Brenda from adopting the retail model.

Brenda is currently working in the real estate sector. She sold her ownership in InchBug to Casey Slusher. The journey did not end well after Brenda declined Kevin’s offer. Time has proven that switching to the retail model was wrong.

Did InchBug Get A Deal On Shark Tank?

InchBug did not get a deal on Shark Tank. Initially, the product idea seemed too generic, but the revenue and profitability got every Shark interested in the business. Rob, Mark, and Lori opted out, stating that the business was performing way better than expectations, so adapting the retail model would be the wrong strategy.

Barbara did not like the product concept because it made an easy job difficult for a mother. However, Kevin saw potential in the business. He offered InchBug $400,000 for a 5% equity stake in the company and a royalty of $1 per product. Once the royalty sum hits the $1.2 million mark, it will expire and not continue in perpetuity.

Kevin’s offer also came with a contingency that InchBug will operate on social media instead of adopting a retail business model. Brenda did not like the contingency because she was under negotiation with the Big-box Store. She refused the offer due to the contingency and left Shark Tank empty-handed.

InchBug Shark Tank Episode Summary

Shark(s) nameOfferDemandCounterofferAccepted?
Kevin O’Leary$400,0005% of an equity stake in the company, $1 royalty per unit sold until the sum hits $1.2 million (no perpetuity from there on), ‘and’ a contingency that the company will refrain from adapting the retail business modelN/ANo
Barbara CorcoranOutN/AN/AN/A
Lori GreinerOutN/AN/AN/A
Mar CubanOutN/AN/AN/A
Robert HerjavecOutN/AN/AN/A

InchBug Shark Tank Update

what happened to inchbug after shark tank

Brenda’s Backstory

Brenda Lee Feldman founded the InchBug company in 2004. The company started from the garage of her house in Austin, Texas. In the first year, the company earned a revenue of $150,000, which grew to $850,000 in the next year. The exemplary growth was due to the development and production of the customized bands, the Orbit Lebel. However, Brenda recently launched My Drinky to expand the product line.

Initial Pitch

Brenda Lee Feldman introduced herself on Shark Tank as an entrepreneur owning InchBug, a company selling products that make life easier for parents. She emphasized children’s love for juice boxes and the convenience of parents just popping the straw inside the box.

Despite the ease and flavors, children press the juice boxes and create a mess around themselves. Brenda claimed that she had a solution to save clothes, furniture, and the back seats of the cars. She presented Sharks with My Drinky, a two-piece adjustable juice box holder in four colors. She provided each Shark with samples of My Drinky and Orbit Lebel. The ask was $400,000 for 10% equity in the company.

Queries About The Product

Lori Greiner asked Brenda about how My Drinky worked. Brenda explained that parents had to use two fingers and press the noses on both sides to pull the top off the base. Next, they had to put a juice box in the base and slide it inside the top. Brenda added that My Drinky came with height adjustment to accommodate all sorts of juice boxes.

Kevin O’Leary admired the product but did not agree that the business had a valuation of $4 million. Brenda confirmed that the valuation was right because the InchBug sold My Drinky worth $50 million. All the Sharks were shocked by the revenue despite a generic product concept.

Robert Herjavec curiously asked about the milk bottle presented beside My Drinky. Brenda replied that the milk bottle had the Orbit Label wrapped around it, a product she invented ten years ago. The Orbit Lebel was developed for baby bottles and sipping cups. InchBug sold $1.5 million worth of Orbit Lebel since it was launched ten years back. Sharks were even more impressed by the numbers. Regarding the latest sales number, Brenda claimed last year’s sales were $2 million in reply to Mark Cuban’s question.

Lori was amazed by the inflated revenues, so she inquired about how InchBug was managing it. Brenda responded that the key was the distribution of products from her house and orders placed directly on the official website. The customization and personalization of bands were done in her office. Lori wanted to explore the profitability of the Orbit Lebel. Brenda explained that the Orbit Lebel was sold in a pack of four and had a selling price of $12.95. The cost to make each pack was $1.44 (including customization).

Lori further asked about what Brenda was selling. Brenda replied that she was not selling a product line but ownership in the InchBug, so it technically included all the products developed by the company. Kevin seemed more interested in Orbit Lebel than My Drinky, as he argued that My Drinky was just a dog that would never reach the level of customized bands sold by the company.

Brenda explained that the main reason behind the comparatively lower performance was the destruction of one of the two production plants run by the manufacturer. The manufacturer had to shift orders from larger clients at a single plant, so the InchBug could not get enough inventory to fuel its sales. She claimed that My Drinky could be successful in the retail business.

Robert reconfirmed Orbit Lebel’s sales performance. Brenda claimed that the customized bands generated $2 million annually over the last four years. Kevin wanted to know about the retail presence of the products. Knowing that all the sales were from the official website, Kevin called InchBug lucky. Barbara Corcoran explained that the company was good outside the stores because the retail model needed lots of inventory, monitoring, and inventory returns.

Kevin insisted that Brenda had built a solid franchise and that her customers were happy with her products. Giving away half the margins to the retailers was not the right thing to do. Brenda argues that she had been running the company for ten years. If people walked into any daycare, they could find the InchBug products there. The retail model was the best thing opportunity to capitalize on that.

Lori strongly recommended Brenda stay away from the retail business because it would need high inventory levels, and the inventory return risk was high. Brenda said she was negotiating with the Big-box Store to win a retail deal.

Shark’s Responses And Final Deal

Robert argues that the retail space demands innovation and new products. Brenda was living her dream where she had recurring revenue by doing the simple things right. He opted out and wished her good luck. Mark insightfully stated that Brenda was adopting a new business model instead of focusing on the core competency, which was the customization of products. He admired the business for killing with $2 million worth of revenue, and shifting to retail would not help, so he refrained from investing in the company.

Barbara had reservations regarding the concept behind My Drinky. She explained that the juice box’s beauty was its ease of use. The product required parents to do more than just popping straws in the juice box. She refused to invest in InchBug. The retail goddess, Lori, also advised Brenda to stop fixing something that was not broken. She also opted out.

Kevin needed the assurance to recover his investment. He offered Brenda $400,000 for 5% of equity share in the company and a $1 royalty per unit until he gets $1.2 million back. Once the sum was recovered, there was no perpetuity required. He promised Brenda to help with social media marketing, but he had a simple contingency: not to engage in retail business.

Kevin did not like to lock capital in inventory, which would float for 90 to 100 days, and the situation might worsen if the product did not work. Brenda declined the offer due to contingency because she had trust in her product to ace the retail business model.

What Went Wrong With The Company On Shark Tank?

Despite having an outstanding product, Brenda could not strike a deal with any of the Sharks. The reason behind her failure was the retail business model she was planning to adapt. All the products developed by the company were sold on its official website, and the growth was organic.

InchBug planned to take its new product, My Drinky, on the retail shelves. Every Shark suggested Brenda continue selling customized products on her website. However, she was committed to working out negotiations with the Big-box Store. Kevin tried persuading her with a contingency to give up on the retail model. Brenda’s repeated refusal ended up costing her a deal on Shark Tank.

Product Description And Availability

InchBug is a children-oriented company that produces smart products for parents. When it appeared on Shark Tank, the company used to deal in two main product lines. It had Orbit Lebel, a customized band developed ten years back. The name was engraved (cut into) on the band with care. The owner had developed a new product named ‘My Drinky’. It was a juice box holder to prevent spilling and mess.

My Drinky had a dog face where parents had to press the nose to pull the covering off. The height was adjustable to accommodate all sorts of juice boxes. It was available in four different colors. However, My Drinky is not available on the official website as of now. The company tried selling the product on Amazon and Walmart, but it has been out of stock for a long time on both platforms.

InchBug has different customized products on its website. Every product provides quality and has an organic presence. The retail model failed for the company, as Sharks warned. However, the customized products have continued to grow ever since. The company has great traffic on its website, which is difficult for competitors to replicate. Orbit Lebel, the trademark product, is nothing revolutionary but surely fulfills consumer needs. 

Conclusion

InchBug could have been the upcoming big thing in the customized product industry for children. The business had sold revenue and margin stats to back the valuation sought. Brenda asked for $400,000 for a 10% stake in the company. 

The sharks were interested in the business, but the owner’s will to switch to a retail business model proved to be a major problem. Brenda kept demanding money to win a contract with the Big-box Store. Sharks disagreed with her plans and refused to invest. 

InchBug is currently selling customized products on its website. My Drinky, the product Brenda wanted to list on retail, was available nowhere on the website. The Sharks seemed right about giving up on the retail transition.

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