There is no one perfect pillow that appeals to everyone. What works for you may cause a stiff neck for someone else. This inspired Susana Saeliu and Kevin Li to create Pluto Pillows and sell customized pillows based on your sleep style. They appeared on Shark Tank but didn't get the deal. Today, Pluto pillows are worth $8 million.
Founder
Susana Saeliu and Kevin Li are from Los Angeles, California. Kevin did not disclose his personal background, but Suzanne graduated from the University of Southern California’s Marshall School of Business.
After graduating with a degree in entrepreneurial studies, she founded Kora Branda and sold bamboo bath towels. The startup was so successful that she sold it in 2011 to form a marketplace called TRADEX, Inc.
Saeliu worked 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.
Build a Pluto Pillow
Together, the pair created a pillow design that can be modified based on the user's sleeping patterns, schedule, and comfort level. They enlisted the help of physical therapists and sleep experts in developing their products.
The result is a comfortable foam that can be adjusted in height and length with a polyethylene surface. It's covered in polyester microfiber and can be customized in thickness and quality.
They use a unique algorithm to create handmade pillows specifically based on the needs of their buyers. The business launched in 2018 and generated sales of $473,000 the following year.
Pluto Pillow’s Shark Tank promo
Suzanne and Kevin appeared in Season 12, seeking $400,000 to purchase 5% equity. With a valuation of $8 million, the entrepreneurs seemed more interested in publicity than closing a deal.
The Sharks were initially interested in the product, but their interest faded when the founders revealed it would cost $95 (including $18 shipping). Daniel Lubetzky expressed concerns about gross margins and whether the business can scale.
The four sharks backed away one by one. Robert Herjavec surprised everyone by offering to buy 20% for $400,000. However, the founders decided the equity was too much and went home without a deal.
Post-episode updates on Shark Tank
Prior to Shark Tank, Pluto Pillow relied primarily on social media and creative PR campaigns to promote its business. After the episode aired, it brought a lot of traffic and new orders to PlutoPillow.com.
The startup subsequently launched three funding rounds, led by three venture capital investors: K2VC, 500 Startups, and Lombardstreet Ventures. This helped them launch 35 different variations on their website and Alibaba.
Although the product is expensive, it's highly rated on Amazon, with nearly 1,500 five-star reviews, which shows that the customizable design works. Pluto Pillow currently has annual revenue of approximately $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 offer. It turns out that Pluto Pillow already had other investors involved and didn't want to impact future funding rounds.
Categories: Shark Tank
Source: svlsf.edu.vn