”We believe in it” — When Shark Tank investors Lori, Kevin and Daymond teamed up to invest in Psyonic

Dr. Aadeel Akhtar pitched Psyonic on Shark Tank season 15, seeking $1 million for 2% equity. The FDA-approved touch-sensing bionic hand company demonstrated its technology through retired army sergeant Garrett Anderson, who lost his arm in Iraq in 2005. The device retails for $15,500, costs $1,500 to produce, and maintains Medicare coverage.

After reviewing the company's $2 million lifetime sales and $3.6 million previous funding, Kevin O'Leary offered $1 million for 10% equity. When Dr. Akhtar asked about other offers, Lori Greiner responded,

"Daymond and I love it. We believe in it. We believe in you. So we'd like to give you an offer. We'd like to do 1 million for 6% but you get both sharks."

This sparked a negotiation that led to a three-shark deal with modified terms.

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Psyonic bags Kevin, Lori, and Daymond in a million-dollar deal on Shark Tank

The Shark Tank pitch opened with Dr. Akhtar requesting $1 million for 2% equity in Psyonic. He detailed his extensive background, including degrees in biology, computer science, electrical engineering, mechanical engineering, and neuroscience. The company's flagship product costs $15,500 at retail with $1,500 production expenses per unit.

Dr. Akhtar outlined plans to increase manufacturing from 100 to 500 hands annually. Sergeant Anderson's demonstration included breaking a wooden board with the bionic hand, showcasing its strength and control capabilities.

The Shark Tank company drew attention for its dual-market approach, serving both human patients and robotics applications. Dr. Akhtar explained their success in securing $2.4 million in grant funding, with an additional $2.7 million expected from the Department of Defense. The presentation highlighted their social media-driven sales strategy, which generates half of their current revenue.

The sharks' responses varied significantly based on their analysis of the business model. Mark Cuban stepped back after reviewing the financial projections and growth strategy. Robert Herjavec connected the pitch to his experience with amputee athletes through Dancing with the Stars.

The Shark Tank investors inquired about the attachment process, learning that professional prosthetists create custom sockets for each patient before Psyonic installs their bionic hand component.

Kevin O'Leary initiated negotiations with a $1 million offer for 10% equity. He emphasized his concerns about future dilution through additional funding rounds. Dr. Akhtar expressed reservations about the equity percentage, citing commitments to existing investors and current company valuation metrics. The discussion revealed Psyonic's 2022 performance of $1 million in sales with $100,000 in profits.

Following O'Leary's initial offer, Lori Greiner and Daymond John formed an unexpected alliance. They presented a joint offer of $1 million for 6% equity. Dr. Akhtar responded with a detailed counterproposal, suggesting $1 million for 2% equity plus 2% in advisory shares.

The sharks emphasized their requirement for non-dilutable shares, prompting Dr. Akhtar to adjust his proposal to 4% with non-diluted shares. During this exchange, Dr. Akhtar shared his manufacturing expansion plans, stating the need for $5 million to achieve the 500-unit production target.

The negotiation took a significant turn when Kevin O'Leary joined forces with Lori and Daymond. The three sharks structured a combined offer of $1 million for 6% total equity, with each shark receiving 2%. This arrangement allowed for potential share dilution, addressing Dr. Akhtar's concerns about future funding rounds. After careful consideration of the terms, Dr. Akhtar accepted the three-shark partnership deal.

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Post-show developments

Following the episode, Psyonic's growth continued with strategic partnerships. As per Shark Tank Blog, the company's StartEngine campaign secured $1,065,170.94 in additional funding.

In May 2024, Psyonic established a collaboration with EastPoint Prosthetics & Orthotics and Advanced 3D Inc., focusing on creating custom-made prosthetic sockets for the bionic hand. This partnership aims to improve product accessibility and affordability.

As of June 2024, three months after the episode's first broadcast, the company's valuation reached $65.07 million. However, public records show no confirmation of the shark deal closing during this period. The company maintains its focus on expanding production capabilities while serving both medical and robotics markets.

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Shark Tank season 16 is airing on the ABC network.