Founded by husband-spouse duo Matt Mundt and Angie Kupper, Hug Sleep is thought for creating the Sleep Pod. It’s a snug swaddle for adults and replicates the sensation of being hugged. They pitched the product on Shark Tank they usually bagged a cope with Mark Cuban and Lori Greiner. As of 2024, Hug Sleep is value an estimated $5 million.
About the Founders
Married couple, Matt Mundt and Angie Kupper hail from Milwaukee, Wisconsin. Matt has a level in mechanical engineering, and his spouse has a grasp’s diploma in neighborhood psychology.
Angie grew to become captivated with aiding these battling psychological sickness after her mom dedicated suicide years in the past. After graduating, Angie spent over a decade working within the psychological well being trade as a therapist.
After faculty, Matt began working as a product designer and labored for a number of famend firms within the area. Though he and Angie had totally different professions, that they had the identical aim: to get higher sleep.
Founding the Company
When weighted blankets grew to become a pattern, Matt wished to strive them himself. So, he purchased one and instantly took it to mattress. At first, he discovered the stress comforting, however he later realized that it additionally trapped warmth.
Matt found that weighted blankets are very laborious to clean and designed his personal comfortable blanket. Instead of utilizing weight to use deep-contact stress know-how, he determined to make use of compression. What he got here up with was a swaddle that would wrap a whole grownup physique.
Matt referred to as it the Sleep Pod, which was launched underneath Hug Sleep in 2019. The couple invested solely $2,500 to get the startup operating. After 16 months in enterprise, they remodeled $490,000 in gross sales.
Shark Tank Pitch
Before Shark Tank Matt and Angie had been bootstrapping their startup and reinvesting income to increase. They appeared on season 12 of the collection, asking for $150,000 for a ten% fairness stake.
They referred to as up Robert Herjavec to check out the Sleep Pod and the demonstration had the opposite Sharks in stitches. Robert ended up falling up and about and hitting his head which prompted him to bleed.
Things heated up as soon as they began speaking about income. Despite being an early-stage startup, income was rising each quarter. They did $490,000 in lifetime gross sales with a internet revenue of $140,000. The product retailed for $99.99 and buyer acquisition was solely $11.50.
A bidding warfare began with all 5 sharks making separate gives, that is extraordinarily uncommon! Then Robert, Kevin and Daymond teamed as much as provide $300,000 for 20%. Mark and Lori made the identical provide, they usually had been those chosen. Greiner and Cuban are a troublesome combo to show down1
After Shark Tank
24 hours after the episode aired, Hug Sleep bought over 25,000 items and made $2.5 million in gross sales! Three months later that determine climbed to $4.1 million! Angie and Matt are in shock over the rise in gross sales, they had been anticipating to promote 3,000 to 4,000 items from Shark Tank!
This helped the founders launch a brand new Sleep Pod for teenagers and one with a hood. You can purchase these merchandise on HugSleep.com, Amazon, and Walmart. They have lately dropped the worth by $20 to $79.99 to make it extra reasonably priced.
Hug Sleep’s unique Sleep Pod has a 5-star common ranking from 109 evaluations on its web site. The firm is booming and is now value an estimated $5 million.
