Storage Scholars Shark Tank Update – Net Worth, Pitch & Deal

College students often struggle to move their items out. Whether it be at the end of the school year or if they have to move to a different college out of state. It’s a common headache since there’s only one person and a lot of items that need to be moved out. It would’ve been easier if there was a company that specialized in solving this problem for college students. 

Matt and Sam created the company Storage Scholars to solve this headache. This was what they also faced when they tried to get their items moved out at the end of their graduation. Their company handles the entire college move-out process. First, they provide students with packing supplies. Then, they store their belongings over the summer break. 

Matt and Sam were looking for a $250,000 investment for 5% of their business on Shark Tank. During their pitch, they emphasized how Storage Scholars not only helps students but also creates jobs on campuses.  But did their idea impress the Sharks? Find out in our Storage Scholars Shark Tank update!

Storage Scholars Net Worth

Matt and Sam asked for a $250,000 investment in exchange for 5% equity in their company. This meant they valued their company at $5 million. They made a deal with Mark Cuban for $250,000 in exchange for 10% of their company. This new deal valued their company at $2.5 million. After the show aired, Storage Scholars saw a big increase in website traffic, sales, and social media exposure. With an estimated 10% yearly growth rate (typical business growth), the current net worth of Storage Scholars is about $3.04 million.

What Happened To Storage Scholars After Shark Tank?

Storage Scholars’ Shark Tank appearance boosted their business big time. They’ve expanded from 23 to over 140 college campuses across the US. They’ve helped 40,000+ students move, and their 2022 revenue hit a staggering number of $1.86 million. This growth shows they’re meeting a real need for college students. By making moving easier, Storage Scholars has found a smart way to solve a common problem for kids in school.

Did Storage Scholars Get a Deal On Shark Tank?

Kevin O’Leary started the discussion by putting $250,000 for a 20% stake in their business. Daymond liked what he saw too, so he teamed up with Kevin for the same amount. That made the offer go to $500,000 for a 40% equity in their business. Robert had his own ideas, as he thought the company was worth more. So, he offered the same amount of cash but only wanted 20% in return.

Lori decided to sit this one out. She didn’t think she could bring much to the table for this kind of business. Then Mark Cuban stepped in with a different take. He offered $250,000 for 12% of Storage Scholars. The founders tried their luck and asked for more money with less equity, but Mark wasn’t convinced. He kept the money the same but lowered his request to 10%. This worked well for the founders, and they happily accepted.

Shark(s) NameOffer and DemandCounterofferAccepted?
Kevin O’Leary$250,000 investment for a 20% stake in the business.N/AN/A
Mark Cuban#1: $250,000 investment for a 12% equity in the business.

#2: $250,000 investment for a 10% equity in the business.
#1: $350,000 investment for an 8% stake in the business.

#2: $300,000 for a 10% equity in the business.
Yes ($250,000 investment for a 10% equity in the business.)
Robert Herjavec$500,000 investment for a 20% equity in the business.N/AN/A
Daymond John$250,000 investment for a 20% stake in the business (He teamed up with Kevin)
Lori GreinerOutN/AN/A

Storage Scholars Shark Tank Update

storage scholars net worth

Founders Backstory

Sam came from a family that valued education, but as he later came to know college was expensive. When he chose Wake Forest University, he was looking at over $100,000 in student loans. He knew starting a business would be his way to financial freedom. At college, Sam spotted a gap in the market and gathered friends who also wanted to make money.

They started Storage Scholars, going door-to-door and facing rejection daily. By the end of the first year, they had 64 customers and $18,000 in revenue. Sam’s hard work paid off his debt, and he even inspired others. His friend Jack joined the business later. Their dedication and timing turned Storage Scholars into a success story, showing how spotting an opportunity and working hard can lead to great things.

Initial Pitch

Sam and Matt stepped into the Shark Tank with big hopes for their college moving business, Storage Scholars. They wanted $250,000 in exchange for 5% of their company. The founders told the Sharks about how expensive it is for college kids to move their stuff. This can be even more pricier if the students are out of state. Many students have a hard time finding cheap ways to store and move their things during summer breaks.

That’s where Storage Scholars comes in. Sam and Matt created a service to help college students move and store their belongings without breaking the bank. They started the business to fix this problem and also give jobs to other students. Their company has gotten much bigger, now helping hundreds of students at many different colleges.

Queries About the Product

what happened to storage scholars after shark tank

When the Sharks asked about the founder’s business, they shared that they’re signed up with 23 colleges, from New York to Texas. They started at Wake Forest University, while they were students and grew from there. The cost for a complete move, which includes boxes, tape, packing supplies, four months of storage, and $100 insurance per item, averages $559. 

Talking about costs and logistics, the founders also explained that each move costs them about $199, covering all supplies, labor, and storage. The moving is done by trained students, resulting in more jobs on campuses for the students.

Their custom technology was a web app built by one of the founders’ brothers, that automates the process. This lets them handle (at the time of appearing on Shark Tank) 3,300 moves across 23 campuses in nine states efficiently, all during the same week each year. It also earned them a 4.8-star rating for reliability and service.

Shark’s Response and Final Deal

did storage scholars get a deal on shark tank

Kevin O’Leary started the discussion on giving a deal. He presented an offer of $250,000 for a 20% stake in the business. The founders thanked Kevin for presenting with the offer. The second Shark who spoke to the founders was Lori. She told the founders that the idea for the business was unique, but it was something she herself didn’t specialize in. For those reasons, she didn’t want to invest in the company.

Robert liked the concept and was a big fan of the founders. He also didn’t want to invest at 5%. As the evaluation of $5 million was steep for him. He countered their original offer to $500,000 for a 20% equity in their business. This was relatively better than what Kevin O’Leary originally offered the founders.

Daymond was quick to join Kevin on his offer. He presented the same investment and the same equity, which made the offer go to $500,000 for a 40% equity in total. They saw the potential it had.. According to the founders, Robert’s offer was more valuable as he was only taking 20% of the business. The Sharks wanted to know what their decision would be. But, they wanted Mark to present his offer.

Mark praised them for their unique business model and presented an offer of $250,000 for a 12% stake in their business. The founders were happy that Mark decided to invest as he had a lot of connections with the universities. But, they countered him with $350,000 for an 8% equity in the business. However, Mark rejected that proposal as the valuation was too much for his liking. Mark countered his own offer for the original amount he offered of $250,000, but with a 10% equity instead.

The founders talked momentarily with each other and increased the amount to $300,000 instead. Mark then reassured the founders of the value he’ll bring to the company with his connections and insisted that they consider the original offer he made before. Matt and Sam happily accepted Mark’s offer and left Shark Tank with Mark Cuban as their investor. 

Product Availability

Since this is a company that focuses on physical presence, you need to get their services from their official website. To get started, you have to sign up and then see if their services are at your respective campuses or not. If they do, then select your school and sign up for their service, which takes about 5 minutes. They charge the customers per item or per month with pricing tiers based on the item size. The customer has to pay for a minimum of 4 months. Their website also has a pricing calculator that estimates the total costs. 

Their services include the following:

  • Free packing supplies delivered to your door
  • Door-to-door pickup and delivery by trusted student movers
  • Secure, climate-controlled storage
  • $100 insurance per item
  • Option to ship boxes home for the summer or to your first apartment after graduation

Conclusion

Matt and Sam came on Shark Tank asking for $250,000 for a 5% ownership in their business. They were confident in their business model, with strong sales to back their claims. The founders swam with the Sharks with multiple offers at their disposal. With multiple Sharks claiming a stake in their business, including Kevin O’Leary, Daymond John, Robert, and Mark Cuban, the founders chose Mark as their lead investor. They both believed with Mark’s connections with universities, their business would thrive to new heights.

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