Hug Sleep Shark Tank Update

Hug Sleep Shark Tank Update || Everything You Need To Know

Shark Tank, the phenomenal show, is always a lucrative option for entrepreneurs gaining business success. The same goes for Matt and Angie, who invented “Hug Sleep” and started to market it in 2018. In Shark Tank’s Episode 1203, these two entrepreneurs proposed 10% of the stock in exchange for a funding amount of $150,000. 

So, what is the Hug Sleep Shark Tank update since then? After realizing the business propositions, chances of getting higher ROI, etc., two Sharks, Lori, and Mark teamed up and offered a total of $300,000 for a 20% market share. Since then, the founders started rolling into a real business in 2020. 

But what happened in these 3 years to this business? Our curiosity has forced us to investigate the Hug Sleep Shark Tank update. Check out what we have found.

Hug Sleep Shark Tank Profile

Hug Sleep Shark Tank

Before getting started, let’s take a look at Hug Sleep’s profile;

CompanyHug Sleep
FoundersMatt Mundt And Angie Kupper
Founded2018
SharksLori Greiner And  Mark Cuban
ProductAdult Swaddle-Like Blankets Made of Stretch Fabric
The Current Price of Hug Sleep $74.99 (earlier, it was $99.99)
Asked For$150,00 (10% Equity)
Deal Finalized$300,000 (20% Equity)
Net Worth in 2020 (before Shark Tank) $1.5 million
Net Worth in 2023 (after Shark Tank) $5 million
Other ProductsSleep Poe Move for adults 
Hooded Sleep Pod 
Move Sleep Pod 
Sleep Pod Move for kids
Shark Tank Episode (USA)Season 12, Episode 3
Date AiredOctober 30 2020
Company StatusOngoing
Websitehttps://hugsleep.com/ 
EpisodeAmazon Prime
HeadquarterBrookfield, Wisconsin, United States
Social Media PagesInstagram
Facebook
Twitter
Go to AmazonCheck Price

What Happened To Hug Sleep After Shark Tank?

Our research tells us that before Shark Tank, the founders were confident about their product’s success. But considering a mass business scale, they were just scared. 

But if you ask what happened to Hug Sleep after Shark Tank, the answer will surprise you. You should know that both of the originators are not from a business background, and even their family background is far related to any real business. 

However, after getting substantially more significant exposure from a media platform like Shark Tank, the business has received a boom. We still cannot resonate why their initial target was making a yearly 4,000 sales while they sold 25,000 units in one day! 

Just in one day, after Shark Tank 1203 was on-aired, the duo made a grand $2.5 million in revenue. Moreover, within three months, the revenue touched the sky: $4.1 million. 

Hug Sleep today has a huge fan base. The product is listed on Amazon and Walmart as a hot-selling item. Additionally, their official website also contributes to the annual sales significantly. 

But one thing should be on your mind right now and that is why did they reduce the product price from $99.99 to $74.99?  From our Hug Sleep update, all we can say is that the business will surprise Shark Tank fans in the upcoming years with this price reduction strategy.

Hug Sleep Net Worth

As of May 24, 2023; we see the founders are still putting in their best effort. As a result, the retention rate is consistent with a $5 million net worth. Most importantly, Hug Sleep now has 109 original and honest reviews with 5-star ratings.

Hug Sleep Sales Data 

As per sales figure analysis, below is the year-wise data.

YearSales Quantity (in Unit)
20215,000
20228,000
20236,668 (projected)

Is Hug Sleep Profitable Now?

Hug Sleep’s financial statement is not publicly available. And also, the owners haven’t mentioned their production cost. However, as business analysts, we would like to point out three particular matters in terms of the product’s profitability. 

Is Hug Sleep Profitable Now

Price Reduction

First of all, the first two years’ dramatic increment in sales was boosted due to two specific things: media exposure from the Shark Tank platform and the tragic story of Angie’s mother that influenced the product creation. Over time, the craze is gone, and it is an old story. 

The reduction in pricing clearly shows that the market demand has been reduced, triggering a decline in profitability. 

Inflation

Secondly, considering worldwide inflation, the associated fixed and variable costs have undoubtedly increased. Oppositely, the business has reduced product pricing. So, I am sure the company is not making a profit as earlier. 

Static

Third, the product is very static; there is no or small scope in the case of value addition. As a result, many customers failed to get benefits from the product. Also, several big brands are competing for the market share of this product. 

These three terms significantly impact sales decline, which ultimately affects the annual profit generation capability. 

In summation, the profitability index has been shrunk, i.e., it is making a profit, but the amount has been reduced. The alarming thing is that its annual revenue has not increased as per expectation.

If you’re interested in more Shark Tank updates, be sure to check out our articles on Pan’s Mushroom Jerky and SparkCharge. Our Pan’s Mushroom Jerky Shark Tank update shares the story of the mouthwatering and vegan-friendly mushroom jerky that impressed the Sharks. Additionally, our SparkCharge Shark Tank update highlights the innovative portable charging solution that caught the attention of the investors. Discover the exciting journeys of these entrepreneurs and their experiences on Shark Tank.

FAQs

We have pinpointed some common questions regarding Hug Sleep after Shark Tank and have answered those below.

Q: Who is the CEO of Hug Sleep?

Matthew Mundt is the CEO of the company. He is also a co-founder of the business.

Q: Does Hug Sleep have any physical outlet?

No, it does not have any physical outlet. The products are available online only.

Q: How much money has Hug Sleep made till now?

After their initial pitching on Shark Tank, the business has made $15 million approximately.

Q: Was Hug Sleep on Shark Tank?

Yes, it was on-aired on October 30, 2020 Episode 1203.

Final Words

At last, as a part of the exploration of the Hug Sleep Shark Tank update, the couple, Matt and Angie certainly deserve to be praised. Their dedication and commitment are examples of future entrepreneurs. Most notably, their dominance in critical thinking and strategy development to steer the business perfectly. 

Moreover, the surprising context is not just a fascination but logical with evidence. Their approach during COVID-19 was remarkable when many big brands couldn’t survive the disaster they stood up.

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