Velocity Signs Shark Tank Net Worth 2023
The net worth of Velocity Signs is unknown as of 2023 since the business is not in operation since 2019. The company was valued at $1.5 million during their Shark Tank pitch and after the investor deal, the valuation of the company was reduced to $750,000.
Following their appearance on Shark Tank, Velocity Signs introduced a new sign, the Mannequin Model, which sells for $1449 and generated revenues from $500,000 to $3 million.
The founders of Velocity Signs, Scott Adams and Josh Faherty, have an unknown net worth.
What Is Velocity Signs?
Velocity Signs is a company based in Austin, Texas that produces custom signs, apparel, and promotional products in small batches. Their aim is to provide customers and partners with motivational experiences by delivering high-quality products featuring engaging designs.
The company was founded in 2006 by two college friends, Scott Adams and Josh Flaherty. Although the firm did not become active until 2011, Scott’s background in sports marketing and his Bachelor of Science degree from California State University-Sacramento, along with Josh’s engineering degree from the same institution, proved to be valuable assets to the company.
Scott has a history of entrepreneurship, having been a partner in several other businesses including an outdoor sports equipment manufacturer and a wireless carrier. He is currently a licensed realtor and serves on the board of directors and directs the celebrity golf tournament for the Stars for Life Foundation.
The idea for Velocity Signs came to Scott while driving along a Los Angeles street and seeing a sign twirler suffering from heat stroke. The concept was born out of compassion for the individual, and after obtaining a patent, the company began manufacturing in 2009, with Josh utilizing his technical abilities to develop a prototype.
In their first year of operation, they sold 125 units and earned $257,000 in revenue. Their clientele quickly grew to include well-known brands such as Burger King, Subway, and Ford and Chevrolet vehicle dealerships.
To avoid stagnation and expand their market, the company increased its output and sought investors, with a goal of raising $2.5 million for the coming fiscal year. However, the company closed in 2019, and Josh’s current whereabouts are unknown.
What Happened To Velocity Signs At Shark Tank Pitch?
Josh and Scott appeared on Shark Tank to pitch their company after achieving total revenue of $257,000. They were seeking an investment of $225,000 in exchange for a 15% ownership stake in their company, which they valued at $1.5 million.
During their pitch, they showed the Sharks an example of a sign-shaker with a sign before revealing their Velocity Signs. They also disclosed that they had sold 125 units in a year for a total of $257,000, with their largest customer being Little Caesars, who has 3,560 outlets across 50 countries. They further stated that their clients typically obtain a 15 percent return on investment.
Robert Herjavec asked for more information on their future plans and the amount of money they would need to execute them. Josh explained that they planned to sell 1,200 units in the coming year and expand their team by hiring more sales representatives and administrative personnel.
Although Mark Cuban loved the idea, he had concerns about its sustainability and scalability, so he passed on the investment opportunity. Kevin O’Leary was interested in their predicted profit, but he felt that it was too early to make such forecasts, and he also opted out.
Barbara Corcoran was impressed by their product and thought it would be perfect for real estate agents, but the weight of the sign was prohibitive, so she decided not to invest.
Lori Greiner was the only Shark who saw potential in the company, and she offered to invest $225,000 in exchange for 30% ownership.
Kevin O’Leary and Mark Cuban were intrigued and decided to join in, offering to split the investment with Lori. Barbara Corcoran, annoyed by their intrusion, proposed to divide the investment with Lori and reduce the equity stake to 25%.
In the end, Josh and Scott decided to accept the offer from Mark, Kevin, and Robert, which valued their company at $750,000 in exchange for a 30% equity stake.
What Happened To Velocity Signs After The Shark Tank?
After completing the transaction with three Sharks, as well as Adam and Josh, Velocity Signs thrived with their 3-Shark deal that was featured on-air.
As a result, they were able to lower the cost of the basic unit to $1,449 and reduce the weight to 75 pounds, which made their signs much more practical. The influence of Barbara also had an impact on the couple, prompting them to modify their mannequin concept to a bespoke Real Estate signage product.
Additionally, the company secured deals with well-known national brands such as AM/PM, Subway, Little Caesars, Burger King, Papa Murphy’s Take N’ Bake Pizza, Anytime Fitness, Chevy, Ford, Freeway Insurance, Del Taco, Sport Clips, Verizon Wireless, H&R Block, Golden State Warriors, Signarama, FASTSIGNS, Econo Lube N’ Tune, and others. Unfortunately, in January 2019, the company ultimately went out of business.
Competitors of Velocity Signs
The company main competitors are; CNS IT, IPSUM Technology, ABM and Sidif.
Net Worth of Velocity Signs
During the pitch the company was valued at $1.5 million and after the investor the valuation of the company was at $750,000 and since the company has closed its doors the valuation is unknown.
Velocity Signs FAQs
What is Velocity Signs?
Velocity Signs is a company which manufactures collapsible animated billboards that can be easily transported and deployed for signs.
Who founded Velocity Signs?
Josh and Scott Flaherty founded the company in 2010.
Where is the company located?
The company is located in Los Angeles, California.
What is their offer at Shark Tank?
They were seeking for $225,000 in exchange for 15% equity of the company.
What is their estimated revenue?
The company had total revenue of $257,000
What is the weight of Velocity Signs?
The company weight is 165 lbs.
How much does Velocity Signs cost?
The company cost at Shark Tank was $1,449.
Is still in business?
Velocity Signs opened in 2009 and the company is no longer in business.
How much do Velocity Signs cost?
Velocity signs have a cost of $1,449 for a sign up and down.
What is Velocity Signs Net Worth at present time?
The net worth of Velocity signs is unknown.
What are the threats?
The main threats for Velocity Signs are high cost of product, lack of capital, lack of market recognition, and competition.
Is there any opportunity?
The opportunity for Velocity Signs is to find a more cost effective way of manufacturing their product.
What impact did Velocity Signs have on the economy of the US?
Velocity signs have been making an impact on the economy of the US.
Is it legit?
It is legit if it is manufacturing the product in the state.
How do they make money?
They make money by maintaining and renting their signs.
Is Velocity Signs a scam?
Velocity Signs is not a scam.
What are their weaknesses?
The main weaknesses of Velocity signs is their cost and location.
How many employees they have at present time?
The present number of employees for Velocity Signs is unknown.
What do they need to succeed?
Velocity Signs need to be closer to the market where their customers are. They need to invest more in their product.
They need to stop using cheap materials during the manufacturing process. The company needs better equity investment at Shark Tank.
How much they invested in the company at present time?
The present investment for Velocity signs is unknown.
What are their total assets?
The total assets for Velocity Signs are unknown.
Is it the right time to invest in the company?
It is not the right time to invest in this company as it has been closed down.
What do they lack at present time?
The company lacks funding, experience, and marketing.
What are the payment terms?
The payment terms for Velocity Signs are unknown.
What office equipment they use at present time?
They use office equipment to make their products.
What is the support system?
The support system for Velocity Signs is great as the owners provide the training required by new employees to be fully functional in their job position.
How do I pay?
One can pay by credit card, cash, or check.
How do they handle returns?
The company handles returns on an individual basis.