Cuddle Tunes came to Shark Tank holding their smart teddy bear in Season 4 episode 14. The episode was aired on February 1, 2013.
In this post, you’ll know the most recent Cuddle Tunes Shark Tank news. Here we have a thorough description of their journeys both during and after the show. We will also talk about:
- What is Cuddle Tunes?
- Who founded Cuddle Tunes?
- Cuddle Tunes during Shark Tank
- Cuddle Tunes after Shark Tank
- What is the net worth of Cuddle Tunes?
- Is it still in business?
- And many more…
Let’s have a look.
What is Cuddle Tunes?
CuddleTunes is a smart teddy bear attached to an MP3 player. Anyone adult can easily pre-record any voice message and play the recording through the bear. Also, children can play music.
The unique feature of CuddleTunes is the option to upload your own voice on the web and have the built-in MP3 player download it and play them to the children.
|Product Name||Cuddle Tunes|
|Episode||Season 4 Episode 14|
|Investment Seeking||$400,000 for 20% equity|
|Status||Out of Business|
Who founded Cuddle Tunes?
The Cuddle Tunes Bear was created in 2009 by Mike Robinson. Its corporate offices are in LA, California, in the United States. While on business trips and away from his children, Mike Robinson had the idea for Cuddle Tunes, his clever teddy bear. He used it to communicate with them and read them stories at bedtime when he could not really be there in person.
Cuddle Tunes Before Shark Tank
When Mike Robinson had to leave his kids behind to travel extensively for work, he came up with the concept for Cuddle Tunes, his clever teddy bear. When he was unable to be present in person, he utilized it as a means of communication to tell them bedtime tales.
Cuddle Tunes during Shark Tank
Mike Robinson, the CEO of Cuddle tunes, entered the stage and made an introduction. He stated to the Sharks that he was looking for $400,000 in return for a 20% stake in the business. Mike claimed that the reason he started Cuddle tunes was really personal.
Over the past 20 years, he has spent time away from his seven children while on work trips. When Mike is always gone, relationships are difficult to sustain, especially when there are young children involved.
Although he said the Sharks were already familiar with the Internet, he nevertheless planned to introduce them to the WWW hub. Mike was speaking while holding a cute teddy bear. He said that the bear will transform bedtime tales all throughout the world and could keep families together.
An internet-connected audio player is housed within the bear which Mike named Cuddle Tunes. You can easily upload content to the player at any time and from any location. The teddy he was clutching, he claimed, belonged to his daughter.
He hit the play button, and you could hear him narrating a tale. It appears that the bear may purchase MP3s of music. Mike assured the Sharks that the sound was of the highest caliber.
Mike claimed to have already spent a million dollars on the bear’s development. He merely needed assistance growing the company because the service and product were already completely built.
Barbara pressed him for clarification. She was informed by him that he had included the cost of his labor in the million dollars. When asked how much money he actually invested, Mike said that it was around $500,000.
The USB-connected MP3 player was located on the bear’s back. As an iPod would, it synchronizes with the Cuddletunes website. There was no need to install any software and the process is straightforward.
Kevin said Cuddle Tunes was worth $2 million and enquired as to whether Mike had enough sales to back up those figures. Robert said that the Sharks feel uneasy when someone doesn’t respond to the sales question.
Mike responded that without any advertising they released the product and made $90,000 by selling to 9.5 percent of site visitors.
Kevin was interested in finding out if the high conversion rate persisted month after month. The source of the traffic was a factor. With websites like Groupon and LivingSocial, he executed many deals for his company.
According to Mark, the apps were doing the real promotion and the discount was what was driving purchases. Kevin was curious about his earnings per bear following the Groupon price reduction.
When given the discount, Mike responded that the margin was 20%. Mark was interested in the cost per unit of production as well as the actual selling price. The bear itself costs $39.95 at retail, and a 20-dollar yearly online subscription fee is required to upload music as well as personalized messages.
All the sharks seemed unimpressed by the business plan and went out. Mike exited the stage after thanking each Shark. Mark stated that he had zero faith in Mike.
Mike was described as looking at them like a honey trap by Daymond, while Barbara referred to him as slick. Kevin flung his sample toward the stage and said that he believed the bear was frothing at the mouth.
Cuddle Tunes after Shark Tank
Having left the show without securing a sale, Mike Robinson said in an interview that not all of his story was used in the final cut.
Military organizations frequently collaborate with CuddleTunes. A large-scale group of clients consists of families of troops on deployment. Additionally, around 50% of sales are made by grandparents.
Although Mike did not provide specific sales figures, his business is still running, and after the presentation, he had a strong 3000 percent increase in internet traffic, which he sustained for several weeks.
Sadly, the effect of Shark Tank faded quickly. Mike shut down the company in 2016.
What is the net worth of Cuddle Tunes in 2022?
The business was given a $2 million valuation during the presentation. However since it shut down in 2016, it is impossible to determine its current net worth.
Is Cuddle Tunes Still In Business?
Unfortunately, Cuddle Tunes Owner Mike Shuttered the company in 2016. Since Aug 2021, He is the mentoring Entrepreneur in Residence and Business at The University of Washington.