Almost everyone has experienced the uncomfortable and frustrated feeling of misplacing their phone, keys, or other personal goods at some point. The anxiety of looking for these things is all too common, whether you’re running out the door or you simply can’t remember where you last put them.
The goal of Zomm’s founder, Henry Penix, was to use a straightforward yet innovative gadget to address this issue. The Zomm alarm would vibrate, light up, and beep to warn you if you were going to forget your phone, keys, or other valuables. In addition, Zomm could be used as an emergency dialer and even as a phone finder.
Henry showed the sharks this invention during Season 4 of Shark Tank. He requested $2 million for 10% of his business. Did the entrepreneur get a deal on Shark Tank? Check out our Zomm update to find out!
Zomm Net Worth 2024
Henry Penix asked for a $2 million investment in exchange for 10% equity in his company, Zomm. This meant he valued his company at $20 million. He did not make a deal with any of the sharks due to concerns about his financial transparency and the valuation of the company. After the show aired, Zomm experienced a significant increase in sales, especially for its original Zomm device and new products like Lifestyle Connect and Wireless Leash. Despite this initial boost, Zomm struggled and eventually went out of business in 2018. As the company shut down, the actual current net worth of Zomm in 2024 is $0.
Zomm Shark Tank Update
As for a Zomm update, Sales of Zomm skyrocketed after Shark Tank, particularly after the show aired. Henry could lower the $2 million cost from unsold merchandise that had built up during the holiday season because of this much-needed relief. The business added the Lifestyle Connect, a low-power health monitor, and the Wireless Leash, a tool for smartphone tracking, to its lineup besides the original Zomm device.
But even with the short-term sales increase, Zomm struggled and ultimately went out of business in 2018. Despite the company’s closure, Henry Penix continued his work. Later on, he rose to the position of CEO at Soaak Technologies, an online platform provider of mental health and wellness services. As of today, Zomm remains unavailable.
No, Shark Tank did not result in a deal for Zomm. Despite Henry’s amazing sales numbers and potential concept, the sharks expressed major doubts about his financial openness and valuation.
| Shark(s) name | Offer & Demand | Counteroffer | Accepted? |
| Daniel Lubetzky | $75,000 for 20% equity | $115,000 for 20% of equity stake | Yes |
| Lori Greiner | Out | N/A | N/A |
| Kevin O’Leary | Out | N/A | N/A |
| Daymond John | Out | N/A | N/A |
| Mark Cuban | Out | N/A | N/A |
Zomm Shark Tank Pitch
The inventor of Zomm, Henry Penix, developed the gadget to address a widespread issue of misplacing belongings. He got the concept after he observed how frequently individuals lost their phones and keys, leading to unnecessary worry and annoyance. In his mind, Zomm would be a straightforward yet effective tool that would warn users before they forgot their belongings.
The path to creating Zomm wasn’t without difficulties, either. Henry, like many business owners, struggled with manufacturing, especially regarding controlling inventories and production costs. These difficulties were made clearer when the company was severely burdened by $2 million in unsold inventory after the holidays.
Henry made a daring pitch on Shark Tank. He came in pricing his company at a sharp $20 million and asked for $2 million for 10% stock. He introduced Zomm as a multipurpose tool that could notify owners when they were going to forget their phones or keys. It might also be used as an emergency dialer and phone finder.
Zomm made $750,000 in 2010 and $5 million in 2011, and Henry was happy to report that the business was expected to make $7.2 million by the end of 2012. The sharks, however, had doubts, especially regarding how the business could have generated so much revenue and yet require the $2 million investment. Keep reading our Zomm update to see what happens next!
Daymond John wanted to know how Henry could justify spending so much money, so he questioned the $20 million valuation. Henry tried to explain the company’s sales numbers, but he had trouble explaining why he still required the investment.
Mark Cuban asked about the sales. Henry replied he launched in 2010 and did $175,000 in sales. The business had $5 million in sales in 2011 and is expecting to make $7.2 million this year.
Robert Herjavec made the observation that Henry shouldn’t require any outside funding at all, given his predicted income of $2 million.
Sharks were confused as to why Henry needed money with such good sales and growth. Henry responded they were short of money because they were producing another product. This left sharks confused and disappointed.
When Lori Greiner investigated further into Henry’s management of the business, she learned he was also developing a second product, Lifestyle Connect, which confused the sharks.
When Daymond John questioned Henry about the company’s R&D expenditures, Henry could not concisely respond; all he could say was that “over $1 million” had been spent on development.
The last shark to speak was Kevin O’Leary. However, he could not make an investment in a business where he had doubts about receiving his money back. He chose not to invest.
Lori Greiner was satisfied with the product but was troubled by Henry’s lack of financial transparency. She left.
Daymond John expressed anxiety about the missing funds, stating that they would likely discover some “horrific” things if they looked over Henry’s books. He said no to making an investment.
Robert Herjavec agreed with Daymond, claiming that the finances were unclear. He left as well.
Mark Cuban was the first to leave, leading the other sharks in, sensing that Henry wasn’t being entirely truthful about his company’s circumstances. Unfortunately, Henry left the Shark tank without the deal.
What Went Wrong With Zomm On Shark Tank?
The biggest challenge stopping Henry from closing the deal was the sharks’ uncertainty regarding the financial openness of his company. Robert Herjavec even claimed that Henry had spent over $9 million.
Despite Henry’s remarkable sales figures, the sharks could not determine where the money had disappeared. The sharks were also concerned about Henry’s participation in another product, unclear R&D spending, and unsold inventories. The sharks decided against investing because of all these variables combined, which made them uneasy.
Product Availability
From our Zomm update research, Sales of Zomm quickly increased after the airing of the Shark Tank episode. The products can be purchased on the Zomm website, Amazon, and other e-commerce sites. Zomm added Lifestyle Connect and the Wireless Leash to its lineup of products. But the business shut down in 2018, and as of right now, Zomm items are no longer sold.
Conclusion
With an innovative approach to a widespread issue and strong early sales numbers, Zomm had a bright future. Even with the sales rise after Shark Tank, the company ultimately found it difficult to maintain its growth. Unclear R&D investment, unsold inventory, and financial mismanagement caused the business’ collapse in part. While Henry Penix has moved on to new projects in mental health and wellness, Zomm had closed its doors by 2018. Henry still maintains an entrepreneurial mentality, even though Zomm’s journey is over.
Hey, I’m Amna Habib an undergraduate student of Bachelors in Business Administration. Shark Tank is one of my favorite TV shows of all time. The show provides a fascinating insight into the world of entrepreneurship by presenting creative solutions to common problems, which strongly connects to my academic interests. I’m interested in learning more about the strategic thinking and creativity that lead these companies as each pitch provides insightful information. I’ve found that watching Shark Tank has inspired my enthusiasm for business and entrepreneurship and has been a very enlightening and motivating experience. Apart from business and writing, I love food, shopping, and hanging out with friends and family. Read more About me.
