Whatever Happened To Hug Sleep After Shark Tank?
Milwaukee couple Angie Kupper and Matt Mundt were firm believers in the benefits of a good night's sleep. However, like many out there, they were finding it difficult to get their own rest. But whereas many would see a problem, they saw a solution, which led to the creation of Hug Sleep. Similar to a baby's swaddle, Hug Sleep's flagship product, the Sleep Pod, wraps adults in a tight-fitting sleep pod that provides an extra layer of pressure to aid in rest.
Matt initially got himself a weighted blanket to try to help him sleep. While he enjoyed the pressure it provided, he disliked how hot it got inside, as well as the difficulty in washing it. With a background in mechanical engineering, Matt sought a better alternative that would eliminate these problems. Angie was a therapist who specialized in working with youth dealing with anxiety disorders. She was aware of the potential that deep-touch pressure therapy had to help encourage relaxation and saw the product as a great opportunity to aid in both physical and mental health.
Using their specialized backgrounds, the couple got to work developing Hug Sleep, which ended up being the perfect solution for their dilemma. They knew that millions of others could benefit from their product, and after a little over a year of escalating success, it was time to hop out of bed and head into the tank.
Hug Sleep awoke a bidding war amongst the sharks
On Season 12 of "Shark Tank," Angie Kupper and Matt Mundt appeared looking for an investment of $150,000 for 10% of their company Hug Sleep. Their presentation starts with Robert Herjavec trying out the Sleep Pod for size. He finds it soothing before falling off the bed and giving himself a little cut. Even then, he still enjoys the product.
The conversation moves on to their sales. Since opening only 16 months prior, the company's total lifetime sales are $490,000. Their profits and margins are also very impressive. On the $335,000 brought in from the past year, they grossed $215,000 and had net profits of $140,000. The past month was their best yet, bringing in $50,000 and raking in $22,000 in profits. To top it off, they only put in $2,500 to start the business and were profitable in their first week. Their plan with the investment is to aid in bringing down production costs while scaling their inventory due to increased demand.
All the sharks want a bite of Hug Sleep. Negotiations go back and forth until Angie tearfully expresses how crucial it is that anyone who joins their company is totally committed to their mission of helping others. Mark Cuban and Lori Grenier decide to team up, proposing $300,000 for 20%. Kevin O' Leary, Daymond John, and Robert Herjavec go in together for the same offer. Ultimately, the team go for Cuban and Grenier, as they were the ones they sought out to begin with. With a combination like that, Hug Sleep was bound to have a bright future ahead.
Hug Sleep after Shark Tank
Hug Sleep experienced the "Shark Tank" effect overnight. According to a "Shark Tank" update segment from later in Season 12, the business, which had only made $490,000 prior to the show, brought in $2 million in sales on the night of their episode's airing. The couple made a thank you video shortly after the episode, sharing that they were working around the clock to meet the demand. "We never could have imagined the amount of people placing orders and asking questions and just general support for the product," Angie said in the video. "We are overwhelmed, but overjoyed with the response." They sold out of Sleep Pods and were placing customers on a waitlist.
With the help of Lori Grenier and Mark Cuban, the team were successfully able to scale as intended. They've been able to produce 10,000 units a week and sold 44,000 by the time of their update segment. Only three months after their first "Tank" appearance, they brought in $4.1 million. Lori Grenier was thrilled by their progress, stating in the update segment, "The future for this business is bright. Right now, they can direct to consumer but in the future, they can also fulfill to stores nationwide and globally. They've developed new products and they've even developed one for kids. Hug Sleep will help men, women, and children all sleep better." Cuban stated that he's confident they'll become a $100 million company. One year after "Shark Tank," the business had brought in $8 million, according to Lori Grenier's website.
Is Hug Sleep still in business?
It's no surprise that Hug Sleep is still around and helping people get a good night's sleep. In March 2023, co-founder Matt Mundt was interviewed by CBS 58 about the company. In the interview, he shared that Hug Sleep will be crossing $25 million in lifetime sales and have sold 250,000 units. "I never thought that selling adult swaddles would be my calling but again this was born out of necessity," he said. "I've always wanted to start my own company, but I never did until I did and I'm so happy that I did." They have also been featured on– and highly regarded by — several other platforms, including BuzzFeed, Yahoo Lifestyle, and Fast Company.
They've also continued to expand their product line. In March 2021, they released the Sleep Pod Move, a more flexible version of the Sleep Pod that allows for increased foot freedom. They also brought in a hooded iteration of the Sleep Pod and a line of cozy loungewear. Many of their products are also available in kid's sizes. These and their other items can be found on their website and Amazon. Oddly enough, their social media presence is somewhat inconsistent. While they remain active on Instagram and TikTok, the company's Facebook and Twitter accounts haven't been updated for some time. Regardless, their lack of social media upkeep doesn't reflect the passion they have for their mission.
What's next for Hug Sleep?
Hug Sleep may have started out as a simple solution to an age-old problem, but it has grown into something much more than that. Not only has the company itself become extremely successful and world-renowned, but its vision to aid in the mental and physical health of its customers has never waned. Whether they choose to head into the retail space or partner with non-profits to help spread awareness on mental health, such integrity is sure to bring Hug Sleep to new heights.
Currently, the company has no plans of slowing down and aims to keep focus on its best-sellers while finding new ways to expand. In a 2022 interview with Sleepopolis, Matt Mundt explained, "We're really doubling down on our core product Sleep Pod. We're a small business at the end of the day, and I'm really able to keep my finger on the pulse of the customer and kind of what they want, so we're constantly evolving, constantly making small tweaks to the product, and then also adding new additions and new versions."
Interestingly enough, both Matt and Angie are still working other jobs while helming Hug Sleep. According to LinkedIn, Matt has been part of the Board of Directors for the Milwaukee School of Engineering since 2022, while Angie continues working as a therapist for Rogers Memorial Hospital. Time will tell how their lives change as Hug Sleep evolves, but either way, the company is on to bigger and better things.