FiberFix Update: Shark Tank Season 5, Episode 6
Did the Deal Go Through?
Lori Greiner agreed to invest $120,000 for 12% ownership of FiberFix, and also agreed to help with funding for future purchase orders. She also agreed to get them onto QVC, and held up her end of the bargain.n Lori's deal was actually more generous than the initial terms the owners,Spencer Quinn and Eric Child, were asking for, and Lori was astute in her decision to go after the company aggressively.
How Did the Business Do After the Show?
These guys have done really, really well since appearing on Shark Tank. First of all, the product is really cool: it's kind of like duck tape, but with rigidity (although you do have to be really careful when handling it). Like duck tape, FiberFix is ubiquitous and flexible, and can be used pretty much anywhere. During their aforementioned appearance on QVC, the company sold out in ten minutes, with over 45,000 rolls sold. Further, the company has done many millions in sales since this appearance, and is now prominently , in addition to Lowe's home improvement stores, and some 30,000 other retailers worldwide. sold on Amazon
What Do I Think?
So, Lori invested $120,000 initially for 12% equity. Let's assume for a moment that the company is only 10% profitable, and they've sold some $12 million in total, which is a figure that seems incredibly conservative, given that they had about $6 million in sales just months after the show aired back in 2013. 10% of $12 million is $1.2 million, and Lori's share of that would be $120,000, which was her initial investment. Being really, really conservative, she has gotten her money back, and now owns 12% of a company that is probably worth several million dollars. I'd say this was a very, very good investment, on balance. Of course, Lori seems to have worked for the money as well, making deals and introductions, and getting the duo of owners on QVC in the first place. If we assume the sales are considerably more than $12 million, the merit of her investment goes up accordingly... and I think that's a very reasonable assumption.