Cuddle Bear Shark Tank

Cuddle Bear Shark Tank

Cuddle Bear was an internet-connected MP3 player bear designed by Mike Robinson that could play prerecorded messages from loved ones. Mike needed to travel for work often, so this bear would read bedtime stories out loud from Mike himself while away. They became popular among parents and grandparents and the business began making money, but he needed an avenue for growth so he approached the shark tank in hopes of raising $400K in exchange for 20% ownership stake in what he estimated as being valued at $2 million.

Mike opened his pitch by telling the tale of traveling for work, leaving his children without father figure figure presence. He explained the concept behind Cuddle Tunes: an intelligent teddy bear which allows users to record and download audio messages that their children can listen to when they can’t be with them in person, from bedtime stories or prayers, right up to recording bedtime stories! Each bear features a USB connected MP3 player which syncs up seamlessly with iTunes; users can log on from any location at anytime from their computer and send their child’s audio messages!

He then gave a demo of his product to the Sharks by playing one of his recorded messages for them in their own voices. They were impressed with his concept but they raised questions regarding some of his sales and marketing figures; becoming frustrated when he sidestepped direct answers to their inquiries.

Barbara asked him about the value of his business. When asked, he responded that he had invested about one million dollars over three years for development purposes, including time costs in that total figure. In response to Barbara’s questioning about this statement, he answered by including these costs within that one million figure.

Robert and Kevin started to back out after this, while Mark stayed involved as he felt there was still demand for his products but hadn’t quite hit market saturation yet. Furthermore, Mark voiced concerns regarding competition as well as marketability of his product.

Michael then revealed that his customers included families of deployed soldiers and grandparents. Although Michael’s sales numbers impressed the Sharks, no deal was struck despite a 25% discount offered on bears to assist their efforts; nevertheless they agreed to continue working together despite its later closure.

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