"I've done my journey in neighborhoods" - When Shark Tank guest investor Nirav Tolia rejected Hidrent

Dave Heimbuch pitched Hidrent, an app connecting off-duty firefighters with homeowners, on Shark Tank season 13 episode 7. He sought $300,000 for 8% equity at a $3.75 million valuation. The company showed $850,000 in lifetime sales since 2018, operating in Phoenix and Tampa markets with a 23% commission model. Nirav Tolia admired the idea and gave detailed feedback as well.

“For you to do this and try to build a company on your own, it feels a little rough. It's hand-to-hand combat - you have to do it one neighborhood at a time. It will take many years,” he stated.

The Shark Tank guest investor then came to a decision.

"Look, I feel like you're a kindred spirit. I admire so much about what you're doing, but the truth is I have spent the last decade of my life building a company that's not so dissimilar from what you have in your hands. I wish you all the luck, but I've done my journey in neighborhoods. For that reason, I'm out," he said.

Despite Tolia's rejection, Heimbuch secured $300,000 for 33.3% equity from Robert Herjavec and Lori Greiner. The deal marked the beginning of major changes for Hidrent.

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Nextdoor founder rejected Hidrent's $3.75 million valuation on Shark Tank

Heimbuch's Shark Tank presentation began with a practical demonstration featuring a senior citizen seeking help with household maintenance. The scenario highlighted how customers could access verified firefighters through the app for tasks ranging from moving furniture to installing light fixtures.

The booking process showed real-time availability and transparent pricing. Gutter cleaning services ranged from $158 to $192, establishing clear market rates. The Shark Tank company's success in Dallas/Fort Worth earned recognition as a top 20 workplace, adding credibility to the business model.

Heimbuch explained how the app streamlined payment processing and maintained service quality through user ratings. Hidrent's foundation in 2017 started in the Dallas/Fort Worth region after Heimbuch, who worked in tech sales, spotted a market gap. The business idea emerged from discussions with his firefighter brother-in-law about home repair services.

The app offered multiple services including handyman repairs, yard maintenance, and gutter cleaning. The platform required firefighters to submit employment verification, ensuring customer safety. The initial service areas of Phoenix and Tampa were chosen based on senior citizen demographics.

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Sharks’ reactions

Nirav Tolia provided detailed market insights based on his Nextdoor experience. He praised the concept of connecting firefighters with local households for everyday tasks. Tolia revealed Nextdoor's presence in 99% of American neighborhoods, reaching one in three households.

The Shark Tank guest investor emphasized that Nextdoor took 10 years to acquire 50 million users without paid advertising. The tech founder explained how Hidrent will face similar local marketplace challenges across 250,000 U.S. neighborhoods before declining.

Mark Cuban expressed concerns about customer acquisition costs. Kevin O'Leary praised the business concept but stepped back due to extended growth timeline projections. Robert Herjavec recognized the potential in the trust-based model and offered $300,000 for 20% equity. Lori Greiner joined forces with Robert, suggesting a combined offer of $300,000 for 35%. After negotiations, they settled at 33.3%.

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Post Tank developments

As per Shark Tank Blog, the deal with Robert and Lori did not materialize following the episode. Instead, Hidrent secured $662,000 in seed funding from nine investors. The company launched a StartEngine campaign, raising $149,761 at an $8.5 million valuation.

A strategic partnership with the International Association of Fire Fighters through 2024 provided access to over 300,000 firefighters nationwide. This agreement included a 2% profit donation to IAFF. The company expanded its services to include commercial clients.

By April 2024, annual revenue reached $6 million. The platform maintained its original name while updating branding elements. The service expanded nationwide and added phone booking options to accommodate tech-averse customers.

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Fans can watch new episodes of Shark Tank on ABC network.