DoorBot is now Ring, and Amazon just announced that it would purchase the company for more than a billion dollars. Their investment in the company would have generated a 100 million dollar return for their $700,000 investment had they given Jamie his ask.
This number is before dilution of additional investments into Ring.
Now, back to the DoorBot Shark Tank Pitch
The DoorBot is a video doorbell that lets you see who is at your door via your smartphone, even when you aren't home. Jamie Siminoff pitches DoorBot in Shark Tank Season 5.
The DoorBot allows you to talk to the person standing at your front door. Each unit sells for $199 with cost being $81.83, only selling direct as of the Shark Tank Episode with a million dollars in sales online.
They have an agreement to start selling in Staples stores shortly after their Shark Tank pitch.
DoorBot focuses on disrupting the expensive high-end systems.
Entrepreneur: Jamie Siminoff
From: Los Angeles, California
Ask: $700,000 for 10% equity
Companies in this episode: Magic Moments, SLAWSA, Surprise Ride
Season: Season 5 Episode 509
Sharks: Mark Cuban, Daymond John, Kevin O'Leary, Lori Greiner, Robert Herjavec
First Aired: 11/15/2013
Deal: No Deal despite an offer from the Sharks
What do the Shark Tank Investors say about DoorBot
- Mark Cuban has to say when he jumps into a deal that he can make a company grow in value, and he doesn't see his ability to add value to the DoorBot.
- Daymond John said business has different tiers, and he is wrestling over where this product goes in the market, he is out.
- Kevin O'Leary tells Jamie he needs to take stock of where they are in the company. He made fun of the royalty structure and Mr. Wonderful in the beginning. Kevin makes him an offer at $700,000 at a 10% royalty that drops down to 7% when paid back and 5% equity. He counters at $700,000 in the form of a loan at 10% interest and 3% equity in the business. Jamie tells Mr. Wonderful he is going to decline.
- Lori Greiner thinks he has a lot more potential with the DoorBot, but she is not connecting with Jamie's product. She is out.
- Robert Herjavec struggles with DoorBot as a consumer device and not an Internet play. He is out.
DoorBot after Shark Tank
DoorBot is now rebranded to Ring and has a suite of products that compliment the original video doorbell. Even Richard Branson invested in the company in a later round, something I am sure he spoke about with the Sharks who declined to fund.
DoorBot's sold like crazy after the Shark Tank episode, ramping sales past $3 million for the year.
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