FireAvert Shark Tank Pitch
FireAvert is a solution to prevent kitchen fires. Peter Thorpe created a simple device that cuts power to your stove when your smoke alarm goes off. The device plugs in to the wall, and the stove plugs into FireAdvert.
FireAvert identifies smoke before fire. They are used for prevention and only works for electric stoves. They do not have a gas version. The product retails for $195, which surprises the Sharks at the cost. Peter manufactures it for $45.
Peter claims they will make $2 million with a 37% net profit. They are selling direct to multi-family and senior housing units who have frequent fires. He owns just 37% of the company. The largest shareholder owns 60% who is a friend of his.
FireAvert Episode Data
- Company: FireAvert – Website
- Entrepreneur: Peter Thorpe
- Ask: $300,000 for 7% equity
- Episode Season 7 Episode 712
- Companies in this episode:
- First Aired: 01/05/2016
- Deal: Deal Lori Greiner for $300,000 loan paid back to $400,000 plus 10% equity in the company.
What do the Shark Tank Investors say about FireAvert?
- Mark Cuban – doesn't think Peter has enough stake in the game, he is out.
- Daymond John – thinks he would make it more pressure on him by taking more of his company. He is out.
- Kevin O'Leary – thinks his friend did not save him because he took 60% equity. Kevin O'Leary offers to buy out his friends 60% and will give him 51% voting control. He doesn't want to control the company.
- Lori Greiner – doesn't want to take more of his company and she is out.
- Robert Herjavec – tells him when a company is really small you have to hang on to as much of the company as possible. Robert offers to give him $400,000 and give him control.
Mark Cuban gets on the phone with Jeff, and asks him if he would be willing to sell his equity to be part of this deal. Jeff refuses to sell his position. Jeff doubts that Robert and Kevin would be more strategic in this deal than he is. They decline the deal.
Lori Greiner and Kevin O'Leary come back in with a creative deal. Lori offers $300,000 with a 10% royalty until $400,000 is paid back and then she has a 10% equity stake. They have a deal.
FireAvert after Shark Tank
FireAvert is not one of the companies in Lori's portfolio listing. Evidently the deal did not consummate, but the product is selling at a lower price of $110 through Amazon.