Byron Young’s beanbag chair business was featured on the third season of Shark Tank, which aired on March 30, 2013. The owner of CordaRoys was hoping to secure a deal with Lori Greiner. Lori was a multimillionaire and had previously invested in other businesses. She agreed to invest $200K for 58 percent equity in CordaRoys. She hoped to increase Byron’s net worth by making him a millionaire.
Byron had started his own business, which he said began in his garage. He made five beanbags a day, and eventually he was able to sell them. He had no prior experience in furniture design. But he had a burning desire to make his own money. He found an idea that would help him do so. He invented a beanbag chair that folds into a bed, and was able to secure a Utility Patent for the product.
On the show, Byron presented a pitch to the Sharks about his invention. He explained how his beanbag had no pressure points, and that it was incredibly comfortable. It was packed with the same material as a conventional mattress, and had a super soft foam filling. He said it was the most comfortable beanbag on the market. The Sharks asked him questions about the cost of the product, the marketing plan, and the retail potential.
The business was worth about $1.4 million in the previous year, and he was looking for a strategic partner. He thought a deal with a larger company would help the business grow. He had already negotiated a lease to use a 20,000 square foot space to accommodate his growing business. But he was hesitant to give up control of the company.
He later contacted Lori, who was on the show, and offered to invest $200K for a 58 percent stake in the company. She was not interested in an investment for less than 60% of the company. But she believed that the business could grow and expand under her direction. She was convinced that Byron was a millionaire and she wanted to help him make that happen.
After the show, Byron spoke with the Shark Tank Blog. He described his experience on the show, and talked about his relationship with Lori. He also discussed the need for a larger warehouse to house his expanding business. He said that the company has administrative and manufacturing support, and needs to find a strategic partner to take the company to the next level. He said he’s planning on $10 million in sales this year, and that the business is booming.
He has no regrets about entering the Shark Tank. He believes that his experience on the show was beneficial to his business. He believes that it helped him get media exposure. His website, which had been down for two days after the show, returned to life, and his sales went from $21,000 to $3 million within eight months. He also expects his sales to continue to increase in the future.