Shark Tank: Chirp Accepts $900,000 From Lori Greiner

Although many companies are struggling with sales during the pandemic, Chirp is not one of them. On par for a $40,000,000 year, Chirp has been able to capitalize on their back pain relief product since so many people are staying home and looking for in-home solutions to manage their pain. Chirp is a wheel that is designed to fit between your shoulder blades with a patent-pending spinal canal that helps to reduce tightness and back pain. Offering three different sizes with variable pressures, Chirp has a product available for everyone.

Did he say as much as I think he said? #Valuation #SayWhat #SharkTank pic.twitter.com/OvvTPJs2jj

— Daymond John (@TheSharkDaymond) October 31, 2020

Tate Stock, founder and CEO of Chrip, came to the Shark Tank in hopes of finding a partner willing to invest $900,000 in exchange for 2% equity in Chirp. Because they have been successful at online and social marketing, Tate would like to invest this money into bankrolling POs to be able to keep up with the current demand. This year they have sold $12,000,000 in sales (at the time of filming) which equated to $4,000,000 in profit. With a projection of closing the year at $40,000,000 in sales, Chirp anticipates racking up a $12,000,000 profit in a year where most companies are struggling to stay afloat.

Will this lower back wheel make a deal? #SharkTank

— Shark Tank (@ABCSharkTank) October 31, 2020

The Sharks are very skeptical that such a successful company would need the backing of a Shark, but they are intrigued by the opportunity to invest in a company that is so profitable, with no debt and no other partners. Lori Greiner, Robert Herjavec, and Kevin O’Leary all extend offers to Chirp. Kevin and Robert pitch royalty offers combined with equity shares while Lori offered to invest $900,000 if Tate will pay back $400,000 this year and $500,000 next year in exchange for 2.5% equity. Not willing to give up the additional money on royalty deals, Tate accepted Lori’s offer.

Some of the Sharks were critical of Tate coming to the Shark Tank when his company is so successful this year. Do you think that there should be a cap to the size of the companies that are able to pitch to the Sharks? If you were Tate, which Shark would you have selected? If you were a Shark would you have invested in Chirp? Start the conversation in the comments below!