11 Top Business Models Featured in Shark Tank Show
11 Top Business Models Featured in Shark Tank Show “Shark Tank” provides a platform for entrepreneurs to pitch innovative business models. From Direct-to-Consumer ventures like Scrub Daddy to subscription services such as LovePop, each business demonstrates unique strategies for success. “Shark Tank” has showcased a wide array of business models, highlighting the diverse strategies entrepreneurs…
11 Top Business Models Featured in Shark Tank Show
“Shark Tank” provides a platform for entrepreneurs to pitch innovative business models. From Direct-to-Consumer ventures like Scrub Daddy to subscription services such as LovePop, each business demonstrates unique strategies for success.
“Shark Tank” has showcased a wide array of business models, highlighting the diverse strategies entrepreneurs use to achieve success.
Business Models Featured in Shark Tank Show
Here, we examine specific products from different business models featured on the show, providing details on their revenue generation, founders, investors, and current status.
Direct-to-Consumer (DTC): Scrub Daddy
Product | Reusable cleaning sponge that changes texture based on water temperature |
Model | Direct-to-Consumer (DTC), retail partnerships |
Revenue | Sales through website, major retailers, online platforms |
Founder | Aaron Krause |
Investor | Lori Greiner |
Season & Episode | Season 4, Episode 7 |
Deal | $200,000 for 20% equity |
Status | Active |
Valuation | Estimated at $170 million as of 2023 |
In Business? | Yes |
The DTC model involves selling products directly to consumers, bypassing traditional retail intermediaries. This model leverages online platforms to reach customers, enabling greater control over branding and customer relationships.
Scrub Daddy generates revenue through its e-commerce website and partnerships with major retailers like Walmart and Amazon.
Subscription Service: LovePop
Product | 3D pop-up greeting cards |
Model | Subscription service, e-commerce, retail distribution |
Revenue | Subscription fees, online sales, retail partnerships |
Founder | Wombi Rose and John Wise |
Investor | Kevin O’Leary |
Season & Episode | Season 7, Episode 11 |
Deal | $300,000 for 15% equity |
Status | Active |
Valuation | Estimated at $65 million as of 2023 |
In Business? | Yes |
The subscription service model provides customers with regular deliveries of products for a recurring fee. This model ensures steady revenue and fosters customer loyalty.
LovePop generates revenue through subscription plans for regular card deliveries, online sales, and partnerships with retail stores.
Social Enterprise: Bombas
Product | High-quality socks with a one-for-one donation model |
Model | Social enterprise, Direct-to-Consumer (DTC), e-commerce |
Revenue | Online sales, subscription services, wholesale |
Founder | David Heath and Randy Goldberg |
Investor | Daymond John |
Season & Episode | Season 6, Episode 1 |
Deal | $200,000 for 17.5% equity |
Status | Active |
Valuation | Estimated at $225 million as of 2023 |
In Business? | Yes |
A social enterprise integrates social and environmental goals into its business model. Bombas uses a one-for-one donation model, where each pair of socks sold results in a donation to the homeless. Revenue is generated through e-commerce, subscriptions, and wholesale channels.
Retail Distribution: Simply Fit Board
Product | Exercise balance board |
Model | Direct-to-Consumer (DTC), retail distribution |
Revenue | E-commerce platforms, infomercials, retail stores |
Founder | Linda Clark and Gloria Hoffman |
Investor | Lori Greiner |
Season & Episode | Season 7, Episode 7 |
Deal | $125,000 for 20% equity |
Status | Active |
Valuation | Estimated at $100 million as of 2023 |
In Business? | Yes |
The retail distribution model focuses on selling products through retail stores, both physical and online. Simply Fit Board utilizes e-commerce platforms, infomercials, and retail partnerships to reach a broad customer base and generate sales.
Freemium Model: Trello
Product | Project management tool |
Model | Freemium, with premium features through subscription |
Revenue | Free basic use, paid subscriptions for premium features |
Founder | Michael Pryor and Joel Spolsky |
Investor | Not featured on Shark Tank, but a popular freemium model example |
Status | Acquired by Atlassian |
Valuation | Acquired for $425 million in 2017 |
In Business? | Yes |
The freemium model offers basic services for free while charging for advanced features. Trello provides a free project management tool, with revenue generated from users who upgrade to paid plans for additional features and integrations.
Franchise: Cousins Maine Lobster
Product | Lobster food truck and restaurant franchise |
Model | Franchise model |
Revenue | Franchise fees, percentage of sales from franchisees |
Founder | Jim Tselikis and Sabin Lomac |
Investor | Barbara Corcoran |
Season & Episode | Season 4, Episode 6 |
Deal | $55,000 for 15% equity |
Status | Active |
Valuation | Estimated at $65 million as of 2023 |
In Business? | Yes |
The franchise model allows businesses to expand by licensing their brand and operational model to franchisees. Cousins Maine Lobster generates revenue through franchise fees and a percentage of sales from its franchise locations.
Crowdfunding: Bombas
Product | High-quality socks with a one-for-one donation model |
Model | Crowdfunding through platforms like Kickstarter and Indiegogo |
Revenue | Initial funding from backers, ongoing sales through DTC and retail |
Founder | David Heath and Randy Goldberg |
Investor | Daymond John |
Season & Episode | Season 6, Episode 1 |
Deal | $200,000 for 17.5% equity |
Status | Active |
Valuation | Estimated at $225 million as of 2023 |
In Business? | Yes |
Crowdfunding involves raising small amounts of money from a large number of people, typically via the internet. Bombas initially used crowdfunding to generate capital and gain market traction, later sustaining revenue through direct sales and retail partnerships.
B2B Model: PlateJoy
Product | Personalized meal planning and grocery delivery service |
Model | B2B partnerships with healthcare providers, insurance companies |
Revenue | B2B contracts, subscription fees from consumers |
Founder | Christina Bognet and Niklas Jansen |
Investor | Mark Cuban |
Season & Episode | Season 7, Episode 11 |
Deal | $100,000 for 10% equity |
Status | Active |
Valuation | Estimated at $15 million as of 2023 |
In Business? | Yes |
The B2B model involves selling products or services to other businesses rather than directly to consumers. PlateJoy partners with healthcare providers and insurance companies to offer personalized meal planning services, generating revenue from B2B contracts and consumer subscriptions.
Licensing Model: Groovebook
Product | Photo book subscription service |
Model | Licensing, subscription service |
Revenue | Monthly subscription fees, licensing deals |
Founder | Julie and Brian Whiteman |
Investor | Mark Cuban and Kevin O’Leary |
Season & Episode | Season 5, Episode 13 |
Deal | $150,000 for 80% licensing rights |
Status | Acquired by Shutterfly |
Valuation | Acquired for $14.5 million in 2014 |
In Business? | Yes, under Shutterfly |
The licensing model involves granting permission to another company to use intellectual property, often in exchange for a fee or royalty. Groovebook licenses its photo book technology to other businesses while generating revenue from subscription fees.
SaaS Model: Rent Like A Champion
Product | Platform for short-term home rentals during college football weekends |
Model | SaaS (Software as a Service) |
Revenue | Service fees from rentals, subscription fees for homeowners |
Founder | Mike Doyle and Drew Mitchell |
Investor | Mark Cuban and Chris Sacca |
Season & Episode | Season 7, Episode 5 |
Deal | $200,000 for 10% equity |
Status | Active |
Valuation | Not publicly disclosed |
In Business? | Yes |
The SaaS model delivers software over the internet, typically on a subscription basis. Rent Like A Champion generates revenue through service fees from renters and subscription fees from homeowners listing their properties.
Retail Distribution: Kodiak Cakes
Product | Whole grain and protein-packed pancake and waffle mixes |
Model | Retail distribution, Direct-to-Consumer (DTC), e-commerce |
Revenue | Sales through online platforms, retail stores, food service partnerships |
Founder | Joel Clark and Cameron Smith |
Investor | No deal (pitched in Season 5, revisited in Season 7) |
Season & Episode | Season 5, Episode 22; Season 7, Episode 16 (update) |
Deal | No deal |
Status | Active |
Valuation | Estimated at $200 million as of 2023 |
In Business? | Yes |
The retail distribution model focuses on selling products through retail stores, both physical and online. Kodiak Cakes utilizes e-commerce platforms, retail partnerships, and food service providers to reach a wide customer base and generate revenue.
Conclusion
The business models featured on “Shark Tank” demonstrate the versatility and innovation of modern entrepreneurship.
These examples showcase various strategies, from DTC and subscription services to franchising and SaaS, highlighting how different models can achieve success in diverse markets.
What are some notable business models featured on “Shark Tank”? The show features a variety of models including Direct-to-Consumer (DTC) like Scrub Daddy, subscription services such as LovePop, and social enterprises like Bombas, each illustrating distinct paths to success.