Highlights
- Phil Dumas pitches UNIKEY, a smart electronic lock system controlled via smartphone or key-fob, seeking $500,000 for 33% equity.
- The Sharks engage in a fierce bidding war, with Kevin O’Leary and Mark Cuban securing a deal for $500,000 at 40% equity plus two board seats.
- Although the deal fell through post-show, Dumas secured alternative funding, leading to partnerships with major brands like KwikSet and Nest, and growing UNIKEY to $5.4 million in annual revenue by 2021.
Overview
| Category | Details |
|---|---|
| Name | UNIKEY |
| Founder | Phil Dumas |
| Industry | Home Security, Smart Locks |
| Product | Smartphone-controlled electronic locks |
| Funding | Secured $500,000 from Kevin O’Leary and Mark Cuban on Shark Tank |
| Investment Ask | $500,000 |
| Equity Offered | 33% |
| Valuation | $1.5 million |
Phil Dumas brings his UNIKEY to episode 312 of the Shark Tank. With a background in electrical engineering and biotechnology, Dumas set out to take electronic keys to a new level of convenience and reliability. The result is his UNIKEY, a system that includes an electronically controlled lock which responds to a signal from a smart phone or special key-fob.
The technology was cutting-edge, and fit well with the growing interest in automation and integrated home security systems. Dumas has already managed to launch his product into the marketplace, but he needs a Shark deal to expand the company. Will the Sharks take a nibble of UNIKEY, or will Dumas find himself locked out in the cold?
UNIKEY Shark Tank Recap
Dumas enters the Tank seeking a $500,000 investment in return for a 33% stake in the company. He explains that the basic key has not evolved in over 1,000 years. He gives the Sharks a demonstration of the lock, simply touching the lock itself, while holding his phone within range of the lock.
He explains how users can restrict access, offering the options of sharing unrestricted keys, or keys that are only accessible during certain times of day, or for a limited period of time.
Dumas already owns a provisional patent, and he’s working on a deal with Black and Decker to license and distribute the product. He needs the investment in order to complete development.
The Sharks question his valuation and what the investment will include. Dumas explains that $500,000 is to develop the product and to get the patent protection in place. He recognizes that he’ll need $1.1 million to “reach profitability.”
Who’s In?
Kevin O’Leary is impressed with Dumas’ background and hustle, but he’s uncertain about the “development risk” and the shaky housing market. O’Leary says he “Loves the story, but feels the risk. But I want a piece of it.” He’s willing to put in $100,000, but Dumas would have to raise the other $400,000 from the other Sharks, and he wants 10% himself, making the total investment worth 50%.
Robert Herjavec has a different deal. he’s willing to offer $1 million for 75% of the company, with the contingency riding on the Black and Decker contract.
Barbara Corcoran speaks up. She’s willing to offer $250,000 in exchange for 25%, if Dumas can get Mark Cuban to put up the other half.
Before Cuban can jump in, Daymond John makes an offer. $500,000 for 40%.
Mark Cuban dismisses Corcoran’s offer, but would be willing to join with O’Leary, offering to pitch in the other $400,000 for 45%.
The Sharks are in a feeding frenzy, outbidding one another and fighting over percentage points. Dumas makes a counter offer to Cuban and O’Leary, offering the 40%, plus two seats on the board.
Cuban and O’Leary accept the deal and Dumas leaves the Shark Tank with a deal.
UNIKEY Shark Tank Update
Although the Shark deal went through on television, subsequently, the deal fell through. Dumas was able to secure funding from another investor who put up more than the Sharks offered, for less equity. The due diligence process was long and arduous, but in the end, UNIKEY was able to expand into other markets. Today, the product is sold under license with KwikSet (licensed under the name Kevo), Nest, Honeywell, Haven, and Weiser. The locks can be found in many venues, such as hotels and cruise lines, as well as in home security systems. Although UNIKEY had the Sharks taking bites of one another, Dumas was the one, in the end, who got the best deal.
Over the years, Dumas secured $20 million in venture capital from numerous rounds. As of 2019, the business employs 60 people in Orlando and should continue growing as the smart lock business is a $1.7 billion industry. As of July, 2021, annual revenue is $5.4 million.
Posts about UniKey on Shark Tank Blog
UniKey Company Information
this is crap cause anyways we are always carrying our car key so might as well have the other keys too . It does Not eliminate ALL KEYS . And my cell phone runs out of batt at the end of day when I need to go in my house then what ?????
You still have to carry your physical key, or hide it under a rock.
Why Black & Decker? THEY DONT SELL DOOR LOCKS! Kwikset, Schlage, Weiser, et al, yes but Black & Decker? NO.
Sharks don’t change their own locks that’s why.
Isn’t Black & Decker owned by Stanley though??? Stanley definitely makes door locks.
This is a fantastic product idea – I think Dumas was missing the other areas/”problems” this solves for:
– Coming home with hands full of groceries? Tap a button
– In a rush to get inside your house when you get home because you have to use the bathroom? Tap a button
If this had a number pad – You forgot your key inside the house? Type a PIN on the handle to get back inside.
Those were the 3 problems I was looking to solve for last October when I replaced the locks for the front doors to my house (front door into an entryway, human door into garage, and actual front door into the house). I went with Schlage, though. The Schlage brand lets me change out the locks in the doorknob themselves without having to change out the entire doorknob, and I wanted to ensure I could still use my existing key for the door (previous locks were *fine* – it was the doorknobs themselves that were wearing out and needed to be replaced).