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Sam Chason and Matt Gronberg presented Storage Scholars on Shark Tank season 14, seeking $250,000 for 5% equity. Their student storage service charged $17 monthly with a four-month minimum commitment for handling packing, storage, and shipping for college students during semester transitions.
Kevin O'Leary offered $250,000 for 20%, matched by Daymond John. Robert Herjavec then stepped in, stating:
"Super impressive, great business sense. You have great maturity about you. In some businesses moving slowly is good. What I've learned from you, you got to go faster. To go faster, this is where money helps...I like the 20%, but I'll give you more money. I think your valuation is inflated. It's a bit of a bet on you. I'll give you $500,000 for 20%. You go faster."
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After Robert’s offer, Mark also offered $250,000 for 12%, which was accepted.
Robert Herjavec doubles funding offer to Storage Scholars on Shark Tank season 14
Storage Scholars showed significant market success before entering the Shark Tank. The company started at Wake Forest University, where they built their customer base to 700 students. By the time of filming, they operated on 23 campuses spanning from New York to Texas. Their financial data revealed $1.826 million in sales, with each move generating $559 in revenue against $199 in operational costs.
The Shark Tank company founders shared how they established university partnerships, gaining official endorsements for their "pack it, lock it, and leave it" service. These partnerships allowed direct access to student dorm rooms, creating a smooth moving experience.
Their biggest success came from Wake Forest, while Southern Methodist University emerged as their newest location with 269 customers. When Robert Herjavec began his evaluation, he focused on Storage Scholars' technology infrastructure.
The company used a custom web application, developed by Matt's brother, to coordinate student moves. This system managed 3,300 moves across their campus network during peak periods, maintaining a 4.8-star customer rating.
Herjavec emphasized the need for rapid expansion in the university market, leading to his unexpected offer. Breaking from standard negotiation patterns, he proposed $500,000 for 20% equity, keeping their valuation intact while doubling the available growth capital. His offer aimed to accelerate their campus expansion strategy through increased marketing and operational resources.
Following Herjavec's offer, Kevin O'Leary put forward $250,000 for 20% equity. The Shark Tank investor valued the systematic approach Storage Scholars took to market expansion. Daymond John matched O'Leary's terms, appreciating their proven revenue model.
The negotiation shifted when O'Leary and John combined forces, presenting a joint offer of $500,000 for 40% equity. Mark Cuban entered the discussion with $250,000 for 12%, highlighting his connections with educational institutions.
Matt addressed Cuban's experience with student debt issues, leading to their counter-offer of $350,000 for 10%. Cuban adjusted his position, agreeing to their initial ask of $250,000 while maintaining the 10% equity stake. The founders accepted this deal, prioritizing Cuban's university network over higher funding amounts.
Post-show business growth
As per the Shark Tank blog, Storage Scholars’ agreement closed before their episode aired, enabling quick implementation of growth plans. The company added executive positions, including directors of technology and marketing, plus a campus teams training manager.
By February 2023, Storage Scholars formed a partnership with SIRVA Worldwide Commercial Moving. This alliance provided access to SIRVA's technology systems and physical resources. The company's location count rose from 23 to 73 campuses by August 2023.
The Shark Tank company’s growth continued into 2024, reaching 175 campuses across the United States and Canada. Revenue climbed to $7 million, supported by new services like their student shipping program. This program allowed incoming freshmen to ship belongings ahead, finding everything arranged in their dorm rooms upon arrival.
Fans can watch new episodes of Shark Tank on the ABC network.
