Biz Tips: Shark Tank: Somnifix Accepts $500,000 From Mark Cuban

Biz Tips: Shark Tank: Somnifix Accepts $500,000 From Mark Cuban

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Shark Tank: Somnifix Accepts $500,000 From Mark Cuban

Wokandapix / Pixabay

It’s no secret that the quality of sleep in America is a rapidly growing issue. Virginia native, Nicholas Michalak, decided to do his part on the war for a better night’s sleep by creating Somnifix, a hypoallergenic adhesive patch that gently helps mouth breathers learn to breathe out of their noses while sleeping. Typically, mouth breathers tend to be snorers which can result in dry mouth and nasal congestion.

Nicholas created Somnifix after his father, who is a physician, was diagnosed with obstructing sleep apnea. He couldn’t use any of the devices that were recommended for his condition because he was a mouth breather. Their patented product helps to keep the consumer’s mouth closed but airway open for a better night’s sleep. A breathing vent is incorporated into the product to allow the user to breathe from their mouth if needed.

The Michalak family has invested $1.4 million in Somnifix to develop the product, perform clinical studies at Harvard, as well as to obtain 9 patents in over 70 countries. While the Sharks are impressed that Somnifix has done their homework and developed a great product, they would like to understand the financial picture of the company. The company has been in business for approximately 9 months and has brought in $350,000 in sales so far. The product currently has a margin at just below 50%.

Although the Sharks found Nicholas to be credible, responsible and believable, they aren’t sure how the market will react to this new product. They feel that there is a lot of education of the market that would need to be done for consumers to really get excited about this product. Mark Cuban is the only Shark to show interest in Somnifix because he feels that it may help athletes with sports performance. He feels that the product needs some major marketing updates and as long as they are willing to make these upgrades, he will invest $500,000 for a 20% share in Somnifix. Nicholas accepts Mark Cuban’s offer.

Would you ever use Somnifix’s product? Do you that Mark made a wise investment choice? Sound off in the comments below!

For a full summary of this episode, check out this article. Shark Tank airs on Sundays at 10:00 PM EST.

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