Velocity Signs Shark Tank Update – Net Worth 2024

Traditional methods of catching customers’ attention, such as holding billboards, were physically exhausting. To address this, Scott Adams and Josh Faherty developed an innovative solution. They created Velocity Signs which were battery-powered advertising signs that moved on their own.

They walked into the Shark Tank seeking $225,000 for an equity of 15% in their business. Was their revolutionary product convincing enough for the Sharks? Find out in our Velocity Signs Shark Tank Update!

Velocity Signs Net Worth

Scott Adams and Josh Faherty asked for a $225,000 investment in exchange for 15% equity in their company. This meant they valued their company at $1.5 million. They made a deal with Mark Cuban, Kevin O’Leary, and Robert Herjavec for $225,000 in exchange for 30% of their company. This new deal valued their company at $750,000. After the show aired, Velocity Signs expanded into various markets, including real estate and national retail chains. However, the company eventually went out of business in January 2019. With the business closed, the projected net worth of Velocity Signs is $0.

Velocity Signs Shark Tank Update

What Happened To Velocity Signs After Shark Tank?

Velocity Signs successfully expanded into various markets, including real estate and national retail chains. However, it eventually went out of business in January 2019.

Did Velocity Signs Get a Deal On Shark Tank?

Robert, Kevin, Mark, and Barbara initially declined due to concerns over the growth potential, and product flaws. Lori Greiner offered $225,000 for 30% equity. Kevin and Mark re-entered, proposing a partnership with Lori. However, she was displeased. Barbara sided with Lori, leading to Lori revising her offer to $225,000 for 25% split with Barbara. Kevin, Mark, and Robert offered the duo an investment of $225,000 for an equity of 30% in the business. Despite the tension, Scott and Josh ultimately accepted a deal with Mark, Kevin, and Robert.

Shark(s) Name	Offer and Demand	Counteroffer	Accepted?
Kevin + Robert + Mark	$225,000 for a 30% stake	$225,000 for a 25% stake	Yes ($225,000 for a 30%)
Lori + Barbara	1# $225,000 for a 30% stake 2# $225,000 for a 25% stake (with Barbara)	N/A	No

Founders Backstory

Scott previously was already involved in the sign business. One day, he was on his way to a meeting when he noticed a sign waver, struggling to keep up with the demands of the job. The worker appeared exhausted and was unable to wave the sign to attract attention. That sight struck a chord with Scott. He realized that sign-waving was effective marketing, too.  It was also physically demanding and unsustainable, especially in harsh weather conditions. 

Being in the sign business, Scott began thinking about how he could create a more efficient solution that would achieve the same level of engagement. That moment of realization led to the birth of Velocity Signs. Scott and Josh developed mechanical signs that could mimic the movements of human sign wavers. They aimed to change the sign industry by providing a product that combined the efficiency and durability of modern technology.

Initial Pitch

Josh and Scott entered the Shark Tank seeking an investment of $225,000 in exchange for 15% equity in their company. They kicked off their pitch with a creative and attention-grabbing demonstration. To capture the Sharks’ interest, they first showcased a sign-shaker featuring a sign that humorously read, “Save Me, Sharks.” It was a light-hearted way to draw the Sharks into their pitch, immediately setting a positive and engaging tone. 

Their demonstration showcased the versatility and creativity behind Velocity Signs. In a brilliant move to personalize their pitch, they had crafted each of these mechanical signs in the likeness of the Sharks themselves. Each sign was designed to resemble a specific Shark, complete with their distinctive features. Josh and Scott highlighted the potential for businesses to customize their advertising in ways that could resonate with specific audiences.

Queries About the Product

Barbara started the discussion by inquiring about the sturdiness of the product. She asked how substantial the mechanical signs were. They responded that each sign weighed 165 pounds. It was designed to be stable and difficult to tip over, ensuring durability even in outdoor conditions. Robert then asked about the pricing. He learned that the signs retailed for prices ranging from $18.99 to $2,850.

Curious about their market success, Robert further asked how many units they had sold. It was revealed that they had sold 125 units in the twelve months, generating approximately $257,000 in sales. Robert also inquired about the production costs, to which they responded that each sign cost them around $1,000 to manufacture.

Lori was interested in the effectiveness of the product for customers, questioning how beneficial these signs were for businesses. Scott explained that the customers experienced a 15% return on their investment. He highlighted the value and impact of their signs in driving business. Mark then wanted to know about their client base and who their major customers were. The duo proudly mentioned that their biggest client at the time was Little Caesars Pizza.

Finally, Robert asked about their future plans and how they intended to use the investment if secured. Josh responded that they planned to scale the business by selling 1,200 units in the upcoming year. To support that growth, they intended to hire additional sales representatives and administrative staff.

Shark’s Response and Final Deal

Robert was hesitant to invest in another sign business as he had previously invested in a disappointing billboard company. So, he opted out. Kevin felt it was too early to project such high numbers and decided to pass as well. Mark was concerned about its sustainability and scalability which led him to bow out as well. The product’s 165-pound weight was a concern for Barbara.

Although Josh and Scott mentioned they had a lighter version in development, the fact that it wasn’t available yet made Barbara reluctant to invest. She also stepped out. Lori saw potential in the business and made an offer of $225,000 in exchange for 30% equity.

Intrigued by Lori’s offer, Kevin and Mark jumped back in and proposed to split the deal with her. Barbara was annoyed by the men’s sudden reinterest. So, she offered to partner with Lori suggesting to lower the equity stake to 25%. She also emphasized her real estate connections as a way to boost sales.

That sparked a heated discussion among the Sharks, with each pitching their connections with major retailers to sweeten the deal. After considering their options, Scott and Josh ultimately decided to accept the original offer from Mark, Kevin, and Robert. They secured $225,000 in exchange for 30% equity in Velocity Signs.

Product Availability

The company is out of business. 

Conclusion

Scott Adams and Josh Faherty entered the Shark Tank seeking $225,000 for 15% equity in their business. Although the Sharks initially declined, they later reconsidered and presented two competing offers. Lori and Barbara teamed up to make one offer, while Kevin, Robert, and Mark made another. Ultimately, Scott and Josh accepted the offer from the guys.