Firefighter Peter Thorpe hopes to light a fire under the Sharks when he pitches FireAvert, his stove-top fire prevention device, in Shark Tank episode 713. Homes and apartments engulfed in flames are an all-too-common occurrence for firefighters like Thorpe. Many fires are started by unattended cooking and could be easily prevented.
Every 3.5 minutes, a stove fire is reported in the USA. Cooking on an electric stove is the number one cause of home fires and over 500 people DIE each year from this type of fire.
This is what prompted Thorpe to invent FireAvert. Essentially, the product is a kill-switch for an electric range. The range plugs in to the FireAvert sensor which kills power to the range if it “hears” a smoke detector alarm. Killing the power kills the heat, which shuts off the fuel to a fire.
Each FireAvert lasts up to 25 years and costs $195.99. With the average cost of a fire sitting at around $6,000 (not to mention the threat to life), it could be the best investment a homeowner can make. Thorpe hopes the Sharks see his logic, and the benefits of the product. He likely wants help getting production costs down and with broader distribution.
Will a Shark fire up an investment for FireAvert?
FireAvert Shark Tank Recap
Peter enters seeking $300k for 7% of his business. He says he’s a firefighter and entrepreneur and that every 4.5 minutes there’s a stove fire in the USA. He demos the product and says all you have to do is plug it in and it’s ready to go. As he hands out samples, Robert says it’s interesting, but wouldn’t there need to be a lot of smoke for it to work?
Fire Avert is currently only available for electric stoves. It’s been on the market for 18 months and sells for $195; it only costs $49 to manufacture. Sales are on track for $2 million this year with 37% profit. He sells most of his product direct to multi-unit housing developments.
When he reveals that he only owns 30% of the company, the Sharks are put off. He says he sold his equity to survive. A friend owns 60% of the business and the friend has a lot of connections with apartment building owners. Mark has a problem with peter’s equity position; he says he never offers over 49% because he doesn’t want to take control of the company away from the entrepreneur.
Daymond likes the product, but not the equity spread; he’s out. Lori doesn’t want to take more of the company away from Peter; she’s out. Kevin offers to buy out the friend (who invested $50K for his 60%) and take 49% of the company.
After a break, Robert offers the same deal as Kevin, but for $400K. Mark steps into the hall with Peter to call his friend and tells him the two offers. The friend tells peter he doubts the Sharks will be better strategic partners. He won’t sell his equity.
Peter tells Lori he believes he can get the cost down to $20 and sell it for $99 and asks if she’ll do $300K for 12%. Lori says she’ll do a $300K loan at 5% for a 15% royalty. Kevin counters with a $300K loan with a 10% royalty. Peter asks Lori if she’ll do a $300K loan at 5% interest until she recoups $400K, plus 10% equity and Lori agrees!
RESULT: DEAL with Lori $300K loan at 5% plus 10% equity.
FireAvert Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. The deal with Lori never closed, but a day after the show aired, the Fire Avert went to $99 on the company website and on Amazon.
By mid 2019, he had $3.6 million in sales. He started focusing on multi family property owners in 2019 and found success. He attends 4-5 tradeshows per year that target rental property owners. Also in 2019, the company introduced a version that works for gas stoves. He also struck a deal with with Marriott Vacations Worldwide which has a unit in all their rental properties.
Over the years, the company developed
electrical appliances like microwaves, space heaters, toasters, and air fryers, a water sensor to detect flooding or leaks, a fire sprinkler quick stop talon to shut off sprinklers, a tamper sensor, three different smart fire alarms, a smart gas detector, an upgraded alert system with text notifications and a unit that will automatically contact your local fire department in case of a fire.
As of October, 2023, annual revenue is $4 million.
Posts About FireAvert on Shark Tank Blog
FireAvert Company Information
BUY NOW ON AMAZON with Free Shipping
Video
