Hug Sleep was founded by husband and wife duo Matt Mundt and Angie Kupper, best known for inventing the Sleep Pod, a cozy adult swaddle that simulates the feeling of being hugged. They pitched the product on Shark Tank and landed deals with Mark Cuban and Lori Greiner. Hug Sleep is valued at $5 million.
Founder
Matt Mundt and Angie Kupper are from Milwaukee, Wisconsin. Matt has a degree in mechanical engineering and his wife has a master’s degree in psychology.
Angie became passionate about helping those suffering from mental illness after her mother committed suicide. As a therapist, Angie has worked in the mental health industry for over a decade.
After graduating from college, Matt worked as a product designer for several well-known companies. Although he and Angie had different careers, they had the same goal: to improve sleep.
Founding Hug Sleep
When weighted blankets became popular, Matt bought one and took it to bed right away. At first, he felt the pressure was comforting, but then he realized that weighted blankets also trap heat.
Matt found weighted blankets difficult to wash so he designed his own comfort blanket. Instead of using weight to apply the deep touch pressure technique, he used compression. He came up with a swaddle that can wrap around the entire adult body.
Matt named it Sleep Pod and launched it as Hug Sleep in 2019. The couple invested just $2,500 to launch the startup. 16 months later, they had more than $490,000 in sales.
Shark Tank
Prior to appearing on Shark Tank, Matt and Angie built their startup from scratch and reinvested their earnings to scale. They appeared on Season 12 seeking $150,000 in funding for 10% equity.
Robert Herjavec demonstrated how it worked and fell off his bed, hitting his head and bleeding. Things got heated when they started talking about sales.
Despite being an early-stage startup, revenue was growing and margins were high. A bidding war began, with five big names bidding! Then Robert, Kevin, and Daymond teamed up to bid $300,000 for 20% of the company. Mark and Lori also bid the same amount, and they were chosen.
Sales after Shark Tank
24 hours after the show aired, Hug Sleep sold over 25,000 copies, earning $2.5 million in sales! Three months later, that number had climbed to $4.1 million! Angie and Matt were shocked by the sales increase, as they had expected Shark Tank to sell 3,000 to 4,000 copies!
This helped the founders release a new sleeping pod for kids and one with a hood. You can buy these products at HugSleep.com, Amazon, and Walmart. The product is currently on sale for $111 (originally $99), but you have to pay extra for the foot opening and the comfort hood.
Hug Sleep’s original Sleep Pod has 138 reviews on its website with an average rating of 5 stars. The company is valued at approximately $5 million and has made $15 million in sales since appearing on Shark Tank. One problem Hug Sleep faces is that knockoffs flood the market. They hold a patent for body compression sleepwear and have sued other businesses to protect their idea.
Categories: Shark Tank
Source: svlsf.edu.vn