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In Shark Tank season 13 episode 5, aired on November 5, 2021, Cyndi Bray presented her sheet-detangling device company to the Sharks, seeking $200,000 for 5% equity. The product solved sheet tangling issues in dryers while reducing drying time. As Bray showcased her device's effectiveness, Kevin O'Leary gave the first offer, stating:
"I like Simple Solutions. I like the story. Here's an offer. This is a classic Mr. Wonderful royalty situation if I ever saw one. I'm going to give you $200,000. I want 10% Equity. The royalty is not Perpetual. I'm going to charge you a buck 50 cuz you can afford it per unit. When I get a million bucks back it goes away and I'm just left being a partner with you 10%."
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Another investor, Lori Greiner, countered with a $200,000 for a 25% equity offer, starting an intense back-and-forth that saw multiple offer adjustments. As both Sharks fought to win the deal, Kevin dropped his equity ask to 5% while maintaining the royalty, and Lori reduced her stake to 20%. In the end, the founder left the tank with Kevin's deal.
Mr Wonderful won sheet detangling company with royalty deal on Shark Tank
The product, priced at $18.99 for a two-pack with $3.50 manufacturing costs, was already being sold at Walmart, Amazon, and The Grommet, as per Shark Tank Blog. When presented in Shark Tank, Mark Cuban withdrew first, mentioning his limited experience with laundry, which made him unsuitable as an investor.
Robert Herjavec praised Bray's dedication but stepped back without making an offer. Daymond John followed suit, stating the product category fell outside his expertise.
Kevin O'Leary initiated negotiations with a royalty structure, offering $200,000 for 10% equity plus $1.50 per unit until reaching $1 million. Lori Greiner responded with a straight equity proposal of $200,000 for 25%.
The Shark Tank bidding heated up as both Sharks modified their terms to win the deal. Kevin reduced his equity stake to 5% while keeping the royalty component intact. Meanwhile, Lori adjusted her equity requirement to 20%, emphasizing her retail connections and marketing capabilities.
The bidding war concluded when Cyndi Bray selected Kevin O'Leary's offer. The final agreement included a $200,000 investment for a 5% equity stake plus $1.50 per unit royalty until reaching $1 million.
Bray chose O'Leary's deal despite Lori Greiner's reduced equity ask of 20%. The decision centered on maintaining higher company ownership while accepting the temporary royalty structure.
Product background
Wad-Free started as a solution to a common laundry problem. Bray taught herself physics and CAD drawing to design the product, a 4-inch plastic square with rounded corners and snap closures. The device is attached to sheet corners through four holes with snap tabs, which work on both fitted and flat sheets.
She spent 14 months developing prototypes, securing manufacturers, and obtaining trademarks. The product reduced drying time and prevented other clothes from getting trapped inside tangled sheets. Each unit required $3.50 for manufacturing and $3.50 for shipping, which Bray absorbed in the cost structure.
The two-pack retail price of $18.99 maintained a 38% profit margin. Her MBA background and 20 years of advertising experience helped her launch the product during the 2020 pandemic, achieving quick retail placement in major stores.
Post-deal performance
As per Shark Tank Blog, the deal moved forward to due diligence and closed successfully after the show aired. The company's growth continued steadily after the Shark Tank appearance.
By October 2023, Wad-Free's sales reached $750,000, marking significant market expansion. In August 2024, the company launched a new product line targeting blankets and duvet covers, responding to customer demand. The expansion helped push lifetime revenue toward $2 million.
The Shark Tank company maintained strong retail partnerships with Walmart, Amazon, and The Grommet while adding new distribution channels. According to the Shark Tank Recap website, the business value grew to $5 million by 2023, validating Bray's decision to partner with Kevin O'Leary.
The partnership with O'Leary's team proved beneficial for market growth. Bray utilized the investment to scale production and enhance marketing efforts. The royalty structure provided O'Leary with short-term returns while allowing Bray to retain significant equity.
The deal structure matched the company's cash flow capabilities and growth trajectory. The success of Wad-Free demonstrated the effectiveness of O'Leary's royalty-based investment model for products with strong profit margins.
Fans can catch new Shark Tank pitches on the ABC network.
