There’s no one-size-fits-all pillow. What works for you might give someone else a stiff neck. That’s what inspired Susana Saeliu and Kevin Li to create the Pluto Pillow and sell custom pillows based on how you sleep. They appeared on Shark Tank but didn’t land a deal. As of 2024, the Pluto Pillow is valued at $8 million.
Founder
Susana Saeliu and Kevin Li are from Los Angeles, California. Kevin would not reveal his personal background, but Susana graduated from the Marshall School of Business at the University of Southern California.
After graduating with a degree in Entrepreneurial Studies, she founded Kora Branda, which sold bamboo bath towels. The startup was so successful that she sold it in 2011 and founded a marketplace called TRADEX, Inc.
Saeliu works in customer service and noticed that many shoppers were asking for refunds if the pillows they purchased were uncomfortable. When she came up with a solution, she teamed up with her friend Kevin.
Building Pluto Pillow
The two collaborated to design a pillow that could adjust to the user’s sleep patterns, schedule, and comfort level, enlisting the help of physical therapists and sleep experts in developing the product.
The result is a comfortable foam with adjustable height and length, covered in polyethylene, and covered with a layer of polyester microfiber with customizable thickness and quality.
They use a unique algorithm to tailor handmade pillows to buyers’ needs. The company was founded in 2018 and achieved sales of $473,000 the following year.
Shark Tank Promotion for Pluto Pillow
Suzanne and Kevin seek $400,000 in exchange for a 5% stake in Season 12. Given the $8 million valuation, the two entrepreneurs seem more interested in publicity than in closing a deal.
The sharks were initially interested in the product, but their interest faded when the founders revealed that the product would cost $95 with an $18 shipping fee. Daniel Lubezki was concerned about gross margins and whether the business could scale.
Four sharks withdrew one after another. Robert Herjavec surprised everyone by offering $400,000 for 20% of the equity. However, the founders thought the equity was too much and went home without reaching an agreement.
Shark Tank Post-Episode Updates
Before the Shark Tank show, Pluto Pillow relied heavily on social media and creative PR campaigns to promote its business. After the show aired, it brought a lot of traffic and new orders to PlutoPillow.com.
The startup later raised three rounds of funding led by three venture capital firms: K2VC, 500 Startups, and Lombardstreet Ventures. This helped them launch 35 different versions on their website and Alibaba.
Despite its price, the product has nearly 1,500 five-star reviews on Amazon, suggesting the customizable design is effective. Pluto Pillow currently has annual revenue of about $5 million and is worth an estimated $8 million.
The company published a blog post in May 2021 explaining what happened on the show and why they couldn’t accept Robert’s proposal. It turns out that Pluto Pillow already had other investors on board and didn’t want to affect future funding rounds.
Categories: Shark Tank
Source: svlsf.edu.vn