Hatch baby founders bring their knowledge of the baby market to the Shark Tank with their first product, a Smart Changing Pad. The changing table is designed to help moms, of which 2/3 do not meet the feeding requirements. They can weight their babies telling them how much they ate at the same time they are changing them and the data goes to their smartphone.
Hatch Baby Smart Changing Pad is Brand New
The Hatch Baby smart changing pad is brand new with no sales coming into their Shark tank Presentation. That's a ten million dollar evaluation for your first product and no sales! Ann Crady-Weiss and her husband David Weiss use their credibility with a previous company called Baby Center that they sold to Johnson & Johnson.
The cost to manufacture Hatch Baby is $89, and the selling price is $299 putting the smart changing pad in the premium baby product category. Ann and Dave project 20,000 units selling in the first year.
Season: 7 Episode 714
First Run: 2016/1/15
Shark: Mark Cuban, Kevin O'Leary, Lori Greiner, Robert Herjavec, Chris Sacca
Company: Hatch Baby
Entrepreneurs: Ann Crady-Weiss and Dave Weiss
Ask: $250k for 2.5% equity
Deal: Chris Sacca at $250k convertible note terms at $7.5 million.
Ann & Dave went to the original investors from their other company and secured $1.7 million on a convertible note for Hatch Baby. Chris Sacca went out but steps back in to do the deal after they offer him $250k at the same terms of the last round. He takes it.
So what do the Sharks say about Hatch Baby?
Mark Cuban comments, Mike Tyson, said: “everyone has a plan until they get punched in the face.”
Robert Herjavec comments, “Past success is not an automatic indicator of future success. I'm out.”
Lori Greiner said, “Not everyone can afford a changing table at this price. And for that reason, I am out.”
Kevin O'Leary is out because he thinks the price is too high.
Chris Sacca likes the changing pad and the smart platform. His concern is they have a single product that is only addressing a short period in a child's life. He wants them to have other products that they can sell, and it is too early for him. He goes out, but they bring him back in by sweetening the deal to the previous investment round.