Colin Snow
Hug Sleep, the company that created the Sleep Pod, a swaddle blanket for adults, appeared on Season 12, Episode 3 of Shark Tank. The company was founded by husband-and-wife team Angie Kupper and Matt Mundt, who were seeking an investment of $150,000 for 10% of their company. Hug Sleep's Sleep Pod blanket uses compression to provide deep-touch pressure, aiding those with anxiety or sensory issues. After appearing on Shark Tank, the company experienced tremendous success, with sales skyrocketing and new products being launched.
| Characteristics | Values |
|---|---|
| Founders | Angie Kupper and Matt Mundt |
| Product | Sleep Pod |
| Product Description | A swaddle blanket for adults |
| Product Benefits | Provides gentle compression, stimulates serotonin receptors, eases body muscles, helps with anxiety and sensory issues |
| Founders' Background | Mechanical engineering and psychology |
| Investment Asked | $150,000 |
| Stake Offered | 10% |
| Total Lifetime Sales before Shark Tank | $490,000 |
| Sales on the night of Shark Tank episode airing | $2 million |
| Total Sales three months after Shark Tank | $4.1 million |
| Total Units Sold by 2023 | 250,000 |
| Net Worth in 2023 | $5 million |
| Lifetime Sales in 2023 | $25 million |
| Product Availability | Hug Sleep website, Amazon, and other retailers |
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What You'll Learn
Hug Sleep's Shark Tank pitch
On Season 12, Episode 3 of "Shark Tank", Angie Kupper and Matt Mundt pitched their company Hug Sleep, seeking an investment of $150,000 for 10% equity. The company's flagship product, the Sleep Pod, is a swaddle blanket for adults that wraps the body in gentle compression, mimicking the feeling of being hugged and easing anxiety to promote better sleep.
The Sharks were impressed by the couple's low customer acquisition costs and 41% profit margins, as well as the fact that the company was started with just $2,500. During the pitch, Robert Herjavec tried out the Sleep Pod, finding it soothing despite falling off the bed and cutting himself. The couple shared that in the 16 months prior to filming, they made $490,000 in sales.
After individual offers, the Sharks teamed up to present two group offers. Mark Cuban and Lori Greiner offered $300,000 for 20% equity, while Kevin O'Leary, Daymond John, and Robert teamed up to make the same offer. Angie and Matt accepted the deal from Mark and Lori.
Following the episode's airing, Hug Sleep experienced the "Shark Tank" effect, with $2 million in sales on the night. The company sold out of Sleep Pods and had to start a waitlist. With Mark and Lori's help, they scaled production and sold 44,000 units by the time of their update segment. As of October 2022, Hug Sleep's lifetime revenue was $15 million, and by July 2024, it had exceeded $25 million. The company has since expanded its product line, introducing a Sleep Pod with an opening for the feet, a hooded version, and loungewear for men and women.
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The Sleep Pod creators
Angie Kupper and Matt Mundt, the creators of Hug Sleep's Sleep Pod, appeared on Season 12 of Shark Tank seeking an investment of $150,000 for 10% of their company. The Sleep Pod is a swaddle blanket for adults that wraps the body in a gentle compression, providing a similar sensation to being hugged. This therapeutic touch stimulates serotonin receptors in the brain, easing muscles and soothing the mind, which can help with anxiety and sleep.
The idea for Hug Sleep came about when Matt, with a background in mechanical engineering, sought a better solution for his sleep troubles than the weighted blanket he was using, which tended to get hot and was difficult to wash. Together with his wife Angie, a therapist specializing in youth anxiety disorders, they developed the Sleep Pod, utilizing her psychology expertise.
The Sleep Pod gained early media attention and momentum when it launched in early 2019. Shortly after, an email from a Shark Tank executive producer expressing interest in their product for the upcoming season piqued their curiosity. Fast forward to their appearance on Shark Tank, and the Sleep Pod captured the interest of all five sharks, resulting in two group offers. Angie and Matt accepted the deal from Mark Cuban and Lori Greiner, receiving $300,000 for a 20% stake in their company.
The impact of Shark Tank was immediate and significant. Hug Sleep generated $2 million in sales on the night their episode aired, and their business continued to thrive. Three months after their appearance, they brought in $4.1 million in sales, and by 2023, their company was valued at $5 million. They expanded their product line, introducing a Sleep Pod for kids and new versions with added features. In an interview in early 2023, Matt shared that Hug Sleep was on the cusp of achieving $25 million in lifetime sales, a remarkable milestone.
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Shark Tank effect
The "Shark Tank effect" is a term used to describe the sudden surge in sales and popularity that a business experiences after appearing on the show Shark Tank. This effect can be seen in the case of Hug Sleep, a company that featured in Season 12 of the show.
Hug Sleep is a company founded by husband-and-wife team Angie Kupper and Matt Mundt. The company's flagship product is the Sleep Pod, an adult swaddle blanket that provides gentle compression and stimulates serotonin receptors in the brain, aiding in sleep. Prior to appearing on Shark Tank, Hug Sleep had made total sales of $490,000. However, on the night their episode aired, they brought in $2 million in sales, experiencing the "Shark Tank effect" overnight.
The exposure from Shark Tank led to a massive increase in demand for their product, and Hug Sleep sold out of Sleep Pods, starting a waitlist for customers. With the investment and guidance from Sharks Lori Grenier and Mark Cuban, Hug Sleep was able to successfully scale up its production. Just three months after their appearance on the show, they brought in $4.1 million in sales.
The "Shark Tank effect" not only provided Hug Sleep with immediate sales and publicity, but it also helped them gain traction and expand their business in the long run. One year after appearing on Shark Tank, the company had brought in $8 million in sales. As of 2023, Hug Sleep has sold 250,000 units and is expected to cross $25 million in lifetime sales. The company has also expanded its product line, creating a Sleep Pod for children and developing comfortable clothing made from its HugStretch fabric.
The "Shark Tank effect" played a significant role in Hug Sleep's success, helping them reach a wider audience and accelerating their growth trajectory. The exposure and investment from the show allowed Hug Sleep to rapidly increase its production, meet the high demand, and establish itself as a thriving business.
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Hug Sleep's sales
Hug Sleep, the company founded by husband-and-wife team Angie Kupper and Matt Mundt, experienced a massive surge in sales after appearing on Shark Tank. Prior to their appearance on the show, Hug Sleep had total lifetime sales of $490,000. On the night their episode aired, the company brought in $2 million in sales, selling out of their Sleep Pods and requiring them to start a waitlist for customers.
Three months after their Shark Tank appearance, Hug Sleep had amassed $4.1 million in sales. One year after the show, the business brought in $8 million in sales and sold 44,000 units. In an interview with CBS 58 in early 2023, co-founder Matt Mundt shared that Hug Sleep was on the verge of reaching $25 million in lifetime sales and had sold 250,000 units.
Hug Sleep's flagship product, the Sleep Pod, is a swaddle blanket for adults that provides gentle compression and stimulates serotonin receptors in the brain, aiding in relaxation and improving sleep quality. The product was inspired by Matt's personal experience with weighted blankets, which he found too hot and cumbersome. Drawing on his background in mechanical engineering, Matt designed the Sleep Pod to provide the same soothing pressure without the bulk and heat retention issues of traditional weighted blankets.
The Sleep Pod received positive reviews from customers who praised its comfort, breathability, and effectiveness in improving sleep. Some reviews highlighted its benefits for individuals with back and neck pain, anxiety, and PTSD. The product's ease of packing and the convenience of the pay-in-four-installments option were also mentioned as advantages.
Hug Sleep continues to sell its Sleep Pods through its website, Amazon, and other retailers. The company has expanded its product line to include a Sleep Pod with more space for the feet, a hooded version, and a smaller size for children. Additionally, they have ventured into comfortable clothing, offering hoodies and sweatpants made from their HugStretch fabric.
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The future of Hug Sleep
The future looks bright for Hug Sleep. The company experienced explosive growth after appearing on Shark Tank, with sales skyrocketing from $490,000 to $2 million overnight. Just three months after their TV debut, they brought in $4.1 million in sales.
The company has continued to thrive, introducing several new products, including a Sleep Pod with more space to stick a foot out and a version with a hood. They've also developed a line of comfortable clothing for men and women, including hoodies and sweatpants made from their signature HugStretch fabric.
Co-founder Matt Mundt has expressed his intention to continue growing Hug Sleep as a sleep and wellness platform, constantly evolving and making small tweaks to their core product, the Sleep Pod, while also adding new versions and products.
The positive reviews keep coming in, with customers praising the Sleep Pod's ability to provide a cozy, comfortable, and soothing sleep experience. The product's therapeutic touch and gentle compression have been credited with easing muscle tension and soothing restless minds, helping users fall asleep faster and stay asleep longer.
With the ongoing rise in anxiety disorders and isolation, the demand for weighted blankets and compression items is only expected to increase. Hug Sleep's innovative products and strong foundation position them well to meet this demand and continue their success in the future.
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Frequently asked questions
Hug Sleep is a company that produces Sleep Pod blankets for adults. The Sleep Pod is a swaddle blanket that wraps adults in a tight-fitting sleep pod that provides an extra layer of pressure to aid sleep.
Angie Kupper and Matt Mundt are the founders of Hug Sleep.
After appearing on Shark Tank, Hug Sleep experienced a surge in sales and popularity. The company sold out of Sleep Pods and had to start a waitlist for customers. With the help of investors Lori Grenier and Mark Cuban, Hug Sleep was able to scale its production and sold 44,000 units by the time of their update segment.
Angie and Matt accepted an offer from Mark Cuban and Lori Grenier for $300,000 for a 20% equity stake in their company.
Hug Sleep products can be purchased on their website, Amazon, or through various other retailers.
