Velocity Signs Shark Tank Update | Velocity Signs after the Shark Tank
What is Velocity Signs?
Velocity Signs is a small-batch sign, apparel, and promotional product company in Austin, Texas. The company’s mission is to provide a motivational experience for their customers and partners by delivering high-quality products with engaging designs.
Velocity Signs was founded in 2006 by college mates Scott Adams and Josh Flaherty. Despite the fact that the firm only became active a few years later, in 2011,
Scott has a background in sports marketing and a BSc from California State University-Sacramento.
He is currently a member of the Stars for Life Foundation’s board of directors and the celebrity golf event director, as well as a licensed realtor.
Josh, who graduated from the same institution with a degree in engineering, is also a graduate of the same university. It’s unknown what Josh is doing now that the firm has closed in 2019.
Who is the Founder of Velocity Signs?
Scott Adams, a serial entrepreneur and the founder of Gravity Signs, is the founder of Velocity Signs. His experience in marketing and advertising has proven valuable to his company.
Adams has been a partner in several businesses, including an outdoor sports equipment manufacturer and a wireless carrier.
Velocity Signs was founded in 2006 by college friends Scott Adams and Josh Flaherty. Although the firm did not operations until 2011, only a few years later.
Scott has a background in sports marketing and a bachelor’s degree in science from California State University-Sacramento.
He currently serves on the board of directors and directs the Stars for Life Foundation’s celebrity golf tournament, in addition to being a licensed realtor.
Josh is also an engineering graduate of the same university. Josh’s current whereabouts are unknown following the business’s closure in 2019.
Scott witnessed a human sign twirler soaked in perspiration and in the throes of heat stroke while driving along a Los Angeles street one hot summer day.
That’s how the concept for Velocity Signs was born: out of pity for the individual. They began real manufacturing in 2009 after obtaining a patent and used Josh’s technical abilities in developing a prototype.
By 2011, they were ready to launch, and an amazing clientele quickly grew to include Burger King, Subway, and Ford and Chevrolet vehicle dealerships.
They sold 125 units in their first year of operation and earned an astonishing $257,000 in revenue.
Then, fearful of stagnation and expecting to extend their market, they increased output and expanded their market.
They began seeking for investors. They primarily desired to recruit additional sales personnel in order to attain what they estimate to be a manageable $2.5 million for the coming fiscal year.
What Happened to Velocity Signs at Shark Tank pitch?
Josh and Scott went to Shark Tank after the firm had achieved total revenue of $257,000, seeking an investment of $225,000 in exchange for 15% ownership of the company, with a valuation of $1.5 million in the pitch.
They show the Sharks an example of a sign-shaker with a sign before revealing their Velocity Signs.
They went on to say that the firm had sold 125 units in a year for a total of $257,000.
Clients typically obtain a 15 percent return on investment. Little Caesars is their largest customer, with 3,560 outlets across 50 countries.
Once the core figures are established, Robert Herjavec wants to know what the plan is going ahead and how much money will be invested. Josh informs them that they want to sell 1,200 units this year.
In order to grow, they want to add sales representatives and administrative personnel.
Robert has already invested in a failing billboard firm; therefore he is not interested in a second set of billboards. He’s gone.
Kevin O’Leary is curious about their predicted profit. Josh tells that they want to sell $2.5 million in the next 12 months. Kevin O’Leary feels it is too early to forecast such high sales figures, so he leaves.
Mark Cuban loves the idea, but he’s not convinced it’s sustainable or extensible, so he walks away.
Barbara Corcoran talks about her real estate contacts. She imagines the Velocity Signs as a great thing for a Realtor to have in their car for an open house, but the 165 lab weight is prohibitive. Barbara leaves the house.
Lori Greiner is the sole survivor of the Sharks. She enjoys the company. She feels it has promise, so she makes them an offer of $225,000 in exchange for 30% ownership of the company.
Kevin O’Leary and Mark Cuban step in, intrigued by the proposition, and offer to divide the transaction with her.
Barbara Corcoran, irritated by the men’s intrusion, proposes to divide the agreement with Lori and reduce the ratio to 25% equity shares.
Scott and Josh opt to go with Mark, Kevin, and Robert, taking $225,000 in return for 30% equity in the firm which makes valuation of $750,000 and closing the sale.
What Happened to Velocity Signs after the Shark Tank?
Finally, when the transaction with three Sharks and Adam and Josh was completed, Velocity Signs prospered with their on-air 3-Shark deal.
They were able to reduce the cost of the basic unit to $1,449 and the weight to 75 pounds, making the signs considerably more feasible. Barbara’s influence influenced the couple as well, and they have modified their mannequin concept to a bespoke Real Estate signage product.
They also secured agreements with 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 many more. In January 2019, the company 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.