“Two brains are better” - When Shark Tank investors Mark Cuban and Lori Greiner teamed up for HangEase

Ryan Landis created HangEase, a collapsible clothes hanger, in 2003. The product quickly caught retail attention, with Walmart ordering 400,000 units that brought $200,000 in sales and $70,000 in profits.

At age 19, Landis pitched his product on Shark Tank seeking $80,000 for 30% equity, valuing his company at $266,667. Three Sharks declined except for Mark Cuban and Lori Greiner.

Mark Cuban said to Ryan Landis,

"There is uncertainty relative to the competition. There is uncertainty to whether or not your patents be violated. So contingent on the patent being legit and covering and that we do have protection, I'll offer you the $80,000 for 30% just like you've asked."

He added, "I know Lori's kind of thinking about this. Lori wants to come in and split it. That's fine because just two brains are better than one in this particular case."

Lori accepted Cuban’s proposal, and the entrepreneur accepted the deal as well.

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Mark Cuban and Lori Greiner invest $80,000 in HangEase on Shark Tank season 5

Ryan Landis entered the Shark Tank studio with a straightforward solution for clothes storage. The HangEase originated from a classroom assignment challenging students to enhance everyday household items. His teacher asked students to identify and fix common problems around their homes.

Landis noticed that standard hangers took up excessive space. His solution incorporated a folding mechanism that made storage more efficient. The young inventor's success came rapidly. A local parent with Walmart connections spotted the product's potential. This connection led to Landis securing professional patent guidance and establishing an initial retail presence.

By 2006, HangEase appeared in 100 stores nationwide. The Walmart partnership proved particularly lucrative, with the retail giant placing a significant order. The 400,000-unit deal demonstrated strong market acceptance and generated substantial revenue.

Landis showed confidence as he demonstrated his product to the Sharks. He explained the hanger's functionality, highlighting its space-saving features and durability. The presentation included details about his 2007 utility patent, which protected the folding mechanism design. He addressed the ten-year gap in business operations, attributing it to educational priorities.

This explanation sparked varied reactions from the Shark Tank investors, who questioned the extended pause in product development. Robert Herjavec evaluated the product critically and became the first to decline investment. He expressed doubts about market demand, stating consumers hadn't shown sustained interest in alternative hanger designs.

Kevin O'Leary followed with concerns about manufacturing expenses, noting the price point would limit mass market appeal. Barbara Corcoran's exit focused on Landis's extended break from the business, suggesting it indicated wavering commitment.

These consecutive rejections left Mark Cuban and Lori Greiner as the remaining potential investors. Mark Cuban recognized the product's potential but voiced concerns about market competition and patent protection. His offer of $80,000 for 30% equity came with specific conditions.

The deal would proceed only after thorough patent verification confirmed solid protection against competitors. Cuban then decided to strengthen the potential partnership. He turned to Lori Greiner, acknowledging her extensive retail expertise would benefit the business. Greiner accepted the partnership opportunity.

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Deal outcome and aftermath

The initial excitement of securing two prominent investors on Shark Tank faced practical challenges afterward. Despite accepting the joint offer on television, the deal did not proceed to completion, per the Shark Tank blog. Patent verification issues emerged during the post-show process, preventing the partnership from moving forward. The business eventually ceased operations, marking the end of HangEase's retail presence.

Landis adapted to these circumstances by pursuing other professional opportunities. He transitioned into the retail industry, securing a senior-level merchandising position at Neiman Marcus. This role allowed him to apply his product development experience in a corporate setting. By 2023, his career path included pursuing an MBA from Rice University, demonstrating his continued focus on business education and professional growth.

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