“Good with that deal”— When Shark Tank investors Lori Greiner and Robert Herjavec teamed up for Phoozy deal

Former NASCAR driver Kevin Conway and ex-Home Depot executive Josh Inglis presented their phone protection company, Phoozy, on Shark Tank season 12, seeking $500,000 for a 10% stake. The company's protective cases utilize space suit materials to shield phones from overheating, water damage, and impact.

With $1.5 million in 2020 sales and $4.5 million projected for 2021, multiple Sharks showed interest. During negotiations, Robert considered partnering with Lori. He mentioned that this was an operations matter, highlighting the need to focus on getting their money back. Lori responded:

"My feeling is if you go a dollar fifty royalty per then I'm good with that deal. You have a great margin. It's not going to matter to you but it's going to matter to me."

The Shark Tank company founders accepted their combined offer of $500,000 for 8% equity with a $1.50 per unit royalty until they recouped $500,000.

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NASA-inspired phone case company Phoozy secured deal from Lori and Robert on Shark Tank

The Shark Tank pitch began with Conway explaining how he missed important calls when his phone overheated during boating trips. This personal frustration inspired him to develop phone cases using space suit technology from his racing experience.

The founders revealed their sales figures: $700,000 in 2019 and $1.5 million in 2020. Their product line ranged from $34.99 phone cases to $69.99 laptop protectors. Three Sharks showed interest, although Mark Cuban opted out early despite liking the product, and Daymond John also passed. However, Robert Herjavec, Lori Greiner, and Kevin O'Leary engaged in an intricate negotiation process.

Robert Herjavec made the first offer: $500,000 for 4% equity with a $1 royalty until he recouped $500,000. Lori Greiner quickly followed with $500,000 for 4% equity but wanted a $1 royalty until reaching $1 million. The competition escalated when Kevin O'Leary proposed $500,000 for 2.5% equity with a $1 royalty until collecting $1 million.

The royalty component became a central focus, as it directly impacted the founders’ cash flow. Their product margins allowed for royalty payments while still maintaining profitability.

The dynamics shifted when the Shark Tank founders asked if Lori would consider partnering with Robert. Lori expressed interest but requested a higher royalty rate of $1.50 per unit, to which Robert agreed.

Kevin O'Leary responded to this partnership by adjusting his offer to $500,000 for 2.5% equity with a $1 royalty until he recouped $1 million. He highlighted the lower equity percentage as a key advantage. The competition between the Sharks showed their strong interest in Phoozy's market potential and growth trajectory.

While the initial ask was for $500,000 for 10% equity, the founders ultimately secured better terms through the Shark partnership. Lori and Robert's combined offer required 8% total equity, split evenly between them, with the $1.50 royalty rate continuing until they recouped their $500,000 investment.

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Post-tank developments

After the episode aired, Phoozy experienced significant business changes. As reported by Shark Tank Blog, the company saw a 400% increase in sales following their appearance. However, the deal with Lori and Robert did not close after the show. Despite this, Phoozy maintained strong growth momentum.

By 2023, Phoozy reached $4 million in annual revenue. The company expanded its product offerings beyond phone protection. They added new items including laptop cases, tablet protectors, and drink coolers. Their expanded retail presence and distribution channels contributed to sustained sales growth.

The company maintains active sales through its website and Amazon marketplace. Their product line continues to serve customers seeking protection for electronic devices in extreme conditions. Through strategic expansion and market positioning, Phoozy transformed its Shark Tank exposure into tangible business growth.

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Shark Tank season 16 is airing on ABC network.