Scrub Daddy Valuation – How Rich is Aaron Krause?

Named the most successful business on Shark Tank, Scrub Daddy is a cleaning product company founded by Aaron Krause. Their best-selling product is a multi-use polymer sponge with a smiley face on it. As of 2024, Scrub Daddy has a market cap of $250 million and annual revenues of over $200 million. Due to its success, Krause is worth $70 million!

Scrub Daddy finds success after Shark Tank

The day after the show aired, Scrub Daddy sold 42,000 sponges in less than seven minutes. Lori Greiner helped get the product into Bed, Bath & Beyond. Scrub Daddy is available at major retailers such as Costco, Walmart, CVS and Target.

As of January 2017, Scrub Daddy has surpassed $100 million in revenue, and by October 2019, lifetime sales reached $209 million. In 2021, revenue increased 80% year-over-year, and in 2022 the company reached $100 million in sales. As of October 2023, lifetime sales have reached $926 million!

They now sell over 20 products! To keep up with demand, Krause expanded their manufacturing headquarters to 80,000 square feet to increase production. Aaron and his team used TikTok to promote their products through viral marketing.

Today, Scrub Daddy is considered the third largest sponge supplier in the U.S. It is estimated that Scrub Daddy has a market value of approximately $250 million. Before Shark Tank, it was valued at $1 million, and Lori’s 20% stake is now worth $50 million!

On January 28, 2023, Shark Tank did another follow-up and revealed that the company had signed a deal with Unilever. This partnership will increase Scrub Daddy’s international presence and they expect sales to double. In 2023, the company’s sales reached $220 million!

Aaron Krause’s Background

Aaron Krause is from Wynnewood, Pennsylvania. The son of two physicians, he began inventing at an early age and studied psychology at Syracuse University.

After graduating in 1992, Aaron opened a car wash business but was dissatisfied with the quality of the buffing pads available at the time because they damaged the exterior of the car.

He patented his invention, which was made from a high-tech polymer, and knowing he had a hit on his hands, Krause sold his car wash business to focus on his new idea.

Krause currently lives in Voorhees Township, New Jersey with his wife Stephanie and their two children (Bryce and Sophie). According to Zillow.com, their home is valued at $2.1 million. The couple purchased the property in 2015 for $450,000. Stephanie works as the Director of Public Relations and Corporate Event Planning at Scrub Daddy.

Founder of Scrub Daddy

The aspiring entrepreneur invented the machinery needed to produce the pads and ordered custom foam from a German company. Aaron cut it into ridged circles with two holes for a better grip. This was the birth of the Smiley Face Sponge.

In 2008, Kraus’s polishing pad company was acquired by 3M, the world’s eighth largest conglomerate. However, his infamous sponges were not included, and a pile of them were left at the factory.

Three years later, Kraus discovered that the sponge would harden in cold water and soften in hot water. Scrub Daddy was officially launched in May 2012 and was showcased on QVC.

Shark Tank Recap

After watching Shark Tank with his wife, he decided it would be a smart move to bring in a strategic partner to enter the retail business, which at the time was limited to just five supermarkets.

He appeared in the fourth season, hoping to get 10% of the equity for $100,000. Aaron’s speech was energetic and attracted the attention of the Sharks. Kevin O’Leary made a bid for 50% of the equity for $100,000, which triggered a bidding war, but Aaron quickly rejected it.

Daymond John wanted to split the deal with Lori Greiner, but she wanted to go it alone. Lori ended up offering $200,000 for 20%, an offer Aaron Krause jumped at!

Categories: Shark Tank
Source: svlsf.edu.vn