Vengo Shark Tank Net Worth 2023
Vengo is a vending machine company that appeared on Shark Tank in 2016. The founders, Steven Bofill and Brian Shimmerlik, asked for $2 million for a 12.5% equity in the company. They received an offer from Kevin O’Leary and Lori Greiner for a 36-month loan of $2 million at 7% plus 3% equity. However, after the show, the deal made between Sharks and Vengo’s founder was never closed.
Despite not closing the deal with the Sharks, Vengo has been successful. As of 2022, Vengo’s net worth is estimated to be $50 million. In 2019, Vengo raised $7 million in new equity funding from different sources including Gary Vaynerchuk.
The company has also partnered with Blackstone Launchpad to create digital kiosks in schools such as New York University and Syracuse University. As of 2021, Vengo has deployed a total of 1425 machines across the USA in gyms, colleges, residential buildings, public transportation and more.
What Is Vengo?
Vengo produces high-tech vending machines that allow customers to make purchases through a video and checkout system. These digital kiosks not only sell products, but also display advertisements and multimedia content on their screens, benefiting both advertisers and consumers.
The machines accept cashless transactions and have sensors that enable instant returns in the event of non-delivery. Vengo’s unique selling point is its small size and cutting-edge technology.
With a depth of only six inches and requiring only two feet of wall space, these machines can be installed in locations where larger vending machines cannot.
Each machine has a touch screen for product selection, and the integrated technology enables the owner/operator to monitor inventories, track trends, and perform other data-related operations using a smartphone.
Vengo specializes in selling small products such as gum, mints, pain medications, and earbuds. Brian Shimmerlik, who started his career in finance and accounting, is the CEO of the company. Steve Bofill, who has expertise in advanced aeronautical research and design, is the Chief of Design at Vengo.
The co-founders, Brian Shimmerlik and Steve Bofill, collaborated in 2011 to bring their revolutionary idea to life. Brian is passionate about money and business, as well as sophisticated operational data, while Steve is driven by a desire to create an original and long-lasting design and product.
Together, they transformed the traditional, bulky vending machine into a sleek and profitable unit. Vengo manages both marketing and consumer packaged products, making online shopping more convenient and providing access to brick-and-mortar retail items.
What Happen To Vengo At The Shark Tank Pitch?
Vengo aims to install its devices in hundreds of thousands of locations to help vending operators expand their revenue by increasing the number of unit locations. The technology used in Vengo’s devices simplifies management, resulting in time efficiency that traditional vending machines cannot match.
Seeking funding from a Shark, Steven and Brian pitch their idea in the Tank, asking for a $2 million investment in exchange for a 12.5 percent stake in their company, valuing their firm at $6 million.
Steven explains that Vengo is essentially a media firm that generates revenue by selling service agreements for the software that powers its devices. They offer the equipment to vending machine firms for $2,500 and make a profit from software management.
The machines cost $20 per month per machine, which includes maintenance, and Vengo is in charge of the products contained within the machine.
Brian and Steven claim they are revolutionizing retail by integrating the online market into brick-and-mortar stores. They charge vendors $200 per sku every month to have their products displayed in the Vengo machines. They earn the majority of their revenue through servicing contracts for the devices and advertising displayed on the screens.
Although Mark Cuban refers to Vengo as a “digital endcap” and they have already collected $3.5 million in funding, Daymond John dismisses the valuation as “irrational,” while Robert Herjavec believes the company approach is “too convoluted and disorganized.” Lori Greiner is not a fan of the design, believing that the Vengo consumes too much wall space for the functionality of the machine.
After much negotiation, Kevin O’Leary and Lori Greiner offer to provide the loan transaction at a rate of 3% for 36 months, in exchange for a total of 4% equity. Brian and Steven agree and exit the Tank with a negotiated Shark contract.
Vengo After The Shark Tank Pitch
The deal with the Sharks fell through, but Vengo still managed to succeed on Shark Tank. They made an agreement with Blackstone Launchpad to place digital kiosks at several universities, including NYU, Syracuse University, and the University of Central Florida.
Vengo has also expanded into the Hyatt Hotels market, greatly increasing their customer base. Depending on the location, the vending machines offer a variety of products, such as sweets, personal care items, and small tech accessories like headphones.
In 2019, Vengo received $7 million in venture capital funding from a group of investors, including Gary Vaynerchuk. As of November 2021, the company has installed 1,425 vending machines across the US in places like gyms, colleges, hotels, private clubs, residential buildings, offices, and public transportation.
It’s expected that Vengo’s annual revenue will fall somewhere between $15 million and $25 million.
Vengo Net Worth
Valuation is reported to be around the $50 million mark as of Sept 2021.
Vengo top competitors include Youmi, MDMedia, Bigblue and TestingTime.
Is Vengo successful?
Nonetheless, Vengo became a Shark Tank success story.
They struck an agreement with Blackstone Launchpad to establish digital kiosks at NYU, Syracuse University, and the University of Central Florida in New York.
Hyatt Hotels is a newly opened market for Vengo, substantially expanding their reach.
What is Vengo shark tank?
Vengo Labs is a firm that specializes in the development of digital vending machines.
What happened to Vengo the on Shark Tank?
They approached the Tank in search of a $2 million investment in exchange for 12.5% equity.
They ultimately struck a new arrangement with Kevin O’Leary and Lori Greiner: $2 million to be repaid over three years at a rate of 7% in exchange for a 3% stake.
How long does vending machine installation take?
Installing a beverage or snack machine typically takes between 15-20 business days.
Do they need permission to put a Vengo?
While they could theoretically set a vending machine anyplace, the reality is more complicated.
To begin, they are not permitted to put a machine on another person’s property or use their utilities without their consent or a contract.
Do Vengo owners pay rent?
Yes, vending machine operators are required to pay rent or a commission to the building’s owner. Vending machine owners typically pay between 5% and 20% of vending machine sales.
Do Vengo owners pay taxes?
Fully Taxable: “All carbonated beverages and hot food products (other than hot beverages) sold through vending machines are fully taxable, just as they would be in a store or restaurant.
Where is the optimal location for a Vengo?
Apartment Communities, Hotels, Manufacturing Facilities, Offices, Retail Stores, and Auto Shops are all excellent locations for vending machines.
Do fake bills work in Vengo?
Certain vending machines employ UV scanners to determine the authenticity of a banknote by measuring its light.
Magnetic ink is also used to produce real money notes.
Numerous vending machines also employ a magnetic reader to verify the authenticity and denomination of a note by detecting its magnetic signature.
How do Vengo make money?
They get the majority of their revenue through servicing contracts for the devices, as well as advertising displayed on the screens.
How do vending machines aid schools?
A significant advantage of vending machines in schools is that they provide easy access to healthful refreshments during recess.
These foods can aid in maintaining concentration and focus during the school day.
Is Vengo a cash-only establishment?
NO, they take credit, debit, NFC/mobile, and campus cards (Blackboard/CBORD) in this digital era.
How many goods can be stored inside such a compact machine?
A Vengo machine that is completely filled typically carries between 40 and 80 goods, depending on the product mix.
What is required to set up a Vengo?
Vengo may be easily installed on drywall, wood, cement, brick, and marble, among other surfaces. They also offer custom-built stands for areas where wall installation is not possible.
What physical criteria does a Vengo require?
A roughly 23-foot-long flat wall surface, an electrical outlet, and data link are required (WIFI, Ethernet).
They adhere to VESA specifications and are UL certified.
Where does Vengo work best?
They love colleges, gyms, and hotels.
What is the net worth of Brian Shimmerlik?
What is the net worth of Steven Bofill?