Highlights
- Kelly Oriard and Callie Christensen pitch Slumberkins, seeking $175,000 for 5% equity for their plush toys designed to promote emotional development in children.
- Despite impressive sales and a plan to reduce production costs, the Sharks are concerned about the competitive plush toy market.
- Post-show, Slumberkins expanded rapidly, raising $2.8 million in venture capital, partnering with the Jim Henson Company, and reaching $3 million in annual revenue by 2022.
Overview
| Category | Details |
|---|---|
| Name | Slumberkins |
| Founders | Kelly Oriard, Callie Christensen |
| Industry | Plush Toys, Child Development |
| Product | Plush toys promoting positive life skills for children |
| Funding | Sought $175,000 for 5% equity on Shark Tank |
| Investment Ask | $175,000 |
| Equity Offered | 5% |
| Valuation | $3.5 million |
High school pals and educator mothers turned entrepreneurs Kelly Oriard and Callie Christensen pitch Slumberkins, their cuddly baby toys that “promote positive attachments,” in Shark Tank episode 907. Their brand is cuddly toys that each teach positive life skills while getting babies and toddlers ready for bed. The original inspiration came when the pair were sewing “lovey blankets” for their own kids.
The real skinny on Slumberkins is more than just cuddly toys. The whole brand is based around the concept that parent child interaction and sensory stimulation is tantamount to the healthy development of a young child. For instance, their SlumberSloth promotes relaxation and attachment at bedtime. The Bigfoot Slumberkins promotes positive self-esteem, and so on. Each toy comes with a downloadable Sleepytime Rhymes that promote the corresponding benefit of its accompanying toy. The rhymes are available for purchase as story books too.
Each Slumberkins character comes in several styles: plush, ultra-plush and others. They cost between $42-$44. A Slumberkin is made from “plush minky fabric, polyester embroidery thread, and stuffed with hypoallergenic polyester fiberfill” and contains no small pieces a baby can choke on. The women likely want a Shark to help them expand the brand and get into mass retail outlets.
Will a Shark sleep on this investment?
Slumberkins Company Information
Video
Posts About Slumberkins on Shark Tank Blog
Slumber Kins Cuddly Toys With a Purpose
Slumberkins Shark Tank Recap
Kelly and Callie enter the Tank seeking $175,000 for 5% of their business. They tell their story and give their pitch, then hand out samples. Each unit costs $15 to make and they sell from $44 to $52 each – including the book. Most of their marketing is on Instagram. Last year (2016), they did $200,000 in sales. This year(2018), they expect to do $500,000. They need the cash for inventory because they can’t fill the current demand. Recently they found a new manufacturer that will reduce costs to $6 per unit.
Did Slumberkins Get A Deal?
No, it did not. The plush toy industry is a tough one for the Sharks. Daymond got burned in that business a few years ago and he goes out. Kevin thinks a premium plush toy would be a hard sell; he’s out. Mark thinks 5% isn’t enough for him as an investor; he’s out. Lori said she loved the women, but not the competitiveness of the plush industry; she’s out. Robert said they shouldn’t try to expand, thanked them for being teachers and then he went out.
Slumberkins Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. Yearly sales doubled after their appearance in the Tank. In 2018, they announced they would collaborate with the Jim Henson Company to make a live action Slumberkin series. The series will begin streaming in 2021. 2019 saw the business raise $2.8 million in venture capital. In 2020, they were number 270 on the 2020 Inc. 5000 with three year revenue growth of 1657%. Also in 2020, they started the Slumberkins School in response to the Covid-19 pandemic. It provides story time videos of Slumberkins books, activities and coloring sheets for children doing virtual learning. As of July, 2022, the company is in business and doing $3 million in annual revenue.
More products from this episode! Check out other businesses that participated alongside Slumberkins.
