Psi Bands is an acupressure wristband that is claimed to help relieve nausea. The company primarily helps people with morning sickness and motion sickness. Founder Romy Taormina pitched her product on Shark Tank but was unable to land a deal. Psi Bands is estimated to be worth $3 million by 2024.
About the Founder
Romi Taormina is a mother of two from Pacific Grove, California. Taormina holds a bachelor’s degree in business and marketing from California Polytechnic State University.
Growing up, Romi was passionate about entrepreneurship. In college, she became a member of the American Marketing Association. After graduation, she began to pursue her dream of starting a company.
Psi Bands has been in business for about 17 years now. In 2021, she tried something new and became the Monterey County Leadership Program Coordinator, running classes and engaging with community leaders.
establish a company
During her pregnancy, Taormina suffered from morning sickness. She used existing acupressure wristbands to avoid vomiting and nausea. However, Romi was not satisfied with them because they were neither fashionable nor waterproof.
She designed her own version of the product and made it to suit her needs. After researching the market potential and obtaining approval from the U.S. Food and Drug Administration (FDA), Psi Bands were launched.
The products were launched in 2006 by Psi Health Solutions. In addition to moms and hospital patients, she markets them to the boating community because they are waterproof. In 2012, the company had nearly $1 million in sales.
Shark Tank Appearance
In 2013, Romy Taormina had begun selling her products internationally but needed to raise capital to keep up with demand. She appeared on Shark Tank seeking $250,000 in funding in exchange for a 10% equity stake.
The sharks were skeptical of the product and didn’t believe she had enough medical evidence to prove it worked. The host revealed her impressive sales, but the sharks were disappointed with her 11% profit margin. From $1 million in sales, she only made $110,000 in net profit.
She revealed that the company was $600,000 in debt, including her $100,000 in deferred salary. The sharks were angry because it was normal for entrepreneurs not to take a salary. Kevin O’Leary offered $250,000 for 40%, but Romi refused because the equity was too high.
After Shark Tank
Although the promotion did not go as planned, Romi is still running the company. Her show has caused controversy, but the show itself is entertaining and has brought in a lot of free publicity for her brand.
Some viewers also didn’t like the company’s claim to help relieve nausea caused by chemotherapy. The Sharks are especially likely to scrutinize founders when they make medical claims. It reminds me of the Minus Cal pitch when Cuban and he had a falling out!
Psi Bands later secured partnerships with major retail brands such as Target, CVS, Pharmaca, Walgreens, HEB, and REI. You can also find their products on Amazon and their official website, PsiBands.com. On Amazon, their best-selling wristband design has an average 3.9-star rating from 2,781 customer reviews. Currently, Psi Bands is worth an estimated $3 million.
Categories: Shark Tank
Source: svlsf.edu.vn