Quick Shark Tank Update on Chomp Shop
- Shark Tank Appearance: Season 16, Episode 5 (aired November 15, 2024).
- Founders: Max Liechty and Kausi Raman, both graduates of the University of Pennsylvania in Integrated Product Design.
- Initial Ask: $250,000 for 5% equity, valuing the company at $5 million.
- Achievements: Over $2.1 million raised through Kickstarter, with 10,000 units sold pre-Shark Tank.
- Annual Revenue: Estimated $2.3 million.
Chomp Shop, created by founders Max Liechty and Kausi Raman, is changing the way children safely unleash their creativity.
Their standout product, the ChompSaw, is a child-friendly power tool designed to cut and shape cardboard, making it perfect for creative and STEM-based projects.
By addressing the safety risks of traditional cutting tools, the duo has developed a practical solution that inspires hands-on learning.
Their appearance on Shark Tank caught the attention of Mark Cuban and Lori Greiner, leading to a successful deal that has fueled the company’s rapid growth.
“The ChompSaw is designed to chomp away cardboard like a quick hole punch,” the founders explained. Want to know how Chomp Shop is crafting its future? Read on to explore their journey!
Chomp Shop Journey Before Shark Tank
The idea for ChompSaw was born in 2022 during a product design program at the University of Pennsylvania. Observing the challenges children faced while safely working with cardboard, Max and Kausi envisioned a tool that combined safety with functionality.
“We noticed that children loved creating with cardboard but struggled with traditional tools like box cutters or scissors,” said Kausi Raman. Their goal was simple: to make crafting both engaging and safe for children.
The ChompSaw is a unique tool designed to mimic a hole punch’s mechanism. It allows kids to cut shapes into cardboard without sharp edges or risks.
Beyond the ChompSaw, their product line includes affordable tools like scoring tools and hole punches. This encourages accessibility to creative learning.
In 2023, Chomp Shop launched a Kickstarter campaign, raising $1.17 million. They later secured an additional $1 million in funding.
By the time they pitched to Shark Tank, they had sold 10,000 units at $230 each, generating $2.1 million in pre-order revenue. The manufacturing cost of each unit was $73.81, demonstrating strong potential for profitability.
Shark Tank Pitch Recap
Max and Kausi entered the Shark Tank with a clear pitch. “We’re seeking $250,000 for 5% equity,” they stated, valuing the company at $5 million. They emphasized the safety and educational benefits of ChompSaw, aligning it with STEM learning principles.
Demonstrating its functionality, the founders showcased how the tool enabled children to craft creative 3D models without risking injury. “The ChompSaw is a STEM learning tool, not just a cutting device,” explained Max. “It allows children to explore spatial reasoning and hands-on learning.”
@sharktankabc The only time cutting corners is a good thing! ✂️ Catch @itschompshop on a new episode of #SharkTank ♬ original sound – Shark Tank
The Sharks raised critical questions about safety, cost, and scalability. Kevin O’Leary asked, “What happens if a child accidentally touches the blade?” In response, Kausi demonstrated, “It’s completely injury-proof. I can place my finger into the cutting area without harm.”
Barbara Corcoran inquired about the price point. She commented, “$230 seems a bit steep. Are parents willing to pay this?” Max acknowledged the challenge. However, he emphasized their success, saying, “We’ve already sold 10,000 units through pre-orders.”
After negotiations, Mark Cuban and Lori Greiner teamed up to offer $250,000 for 15% equity, which Max and Kausi accepted. Lori described the partnership as an opportunity to transform ChompSaw into “the toy of the holidays.”
Chomp Shop Shark Tank Update
Chomp Shop experienced an immediate boost in sales and visibility following their Shark Tank episode. “Our website traffic exploded after the episode aired,” the founders shared.
The company focused on refining its manufacturing process and enhancing its product offerings. Partnerships with schools and educators were formed to promote the ChompSaw as a STEM learning tool. “We want our products to inspire creativity while being accessible for hands-on learning,” Max explained.
A subscription service was introduced to deliver monthly cardboard projects for kids. “It’s all about empowering children to create and learn every month,” said Kausi. Meanwhile, Chomp Shop continued to operate via its direct-to-consumer model. They have plans to expand into retail soon.
Future Plans
Looking ahead, Chomp Shop aims to diversify its product line. This includes the development of the inventTABLE, a multifunctional crafting table for young creators. Expanding the subscription service is also a priority. It enables children to explore new projects monthly.
Collaborations with educational institutions are being strengthened. Tax incentives are proposed to make the tools accessible to schools. “We’re creating tools that are safe, sustainable, and innovative,” said Lori Greiner, emphasizing the company’s potential.
Closing Remarks
Chomp Shop’s journey from a classroom concept to a Shark Tank success story is a testament to innovation and perseverance. By addressing a common problem with a unique solution, Max and Kausi have positioned their brand as a leader in creative tools for children.
With ambitious plans and the backing of seasoned investors, Chomp Shop is poised to transform STEM education and childhood creativity.
“This is the coolest toy of the year,” Lori Greiner remarked. “Get yours now before they sell out!” Stay tuned as they continue to build a world of safe, creative exploration!
We’re closely following the company to bring you valuable insights. Stay tuned for the latest updates on Chomp Shop!
Feature Image Credit: @abc/@christopherwillard