Vengo Shark Tank Update: After the $2 Million Shark Tank Deal, What Happened to The Vending Machines?

vengo shark tank update

What Is Vengo?

A video and checkout system allows customers to make purchases from high-tech vending machines made by Vengo. The digital kiosks not only sell goods, but they also show multimedia content and advertisements on their displays, which is advantageous for both the companies that advertise and the customers who buy the goods.

Cashless transactions are accepted, and sensors allow an immediate return of any unreceived goods. Vengo stands out for its small size and cutting-edge technology. The machines can be positioned in places where larger, bulkier vending machines cannot be because they only take up two feet of wall space and are only six inches deep.

Each machine has a touch screen that may be used to pick products. The machine owner/operator can use a smartphone to track inventories, chart trends, and perform other data-related tasks thanks to the integrated technology. The machines, which are small in size, sell tiny items like gum, mints, painkillers, and earbuds.

After earning a degree in finance and accounting, Brian Shimmerlik started his career by working for a few significant organizations. He then took a risk and started working full-time for Vengo. Since then, he has received a promotion to CEO. At Vengo, Steve Bofill has been given the title of Chief of Design.

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Bofill’s proficiency in cutting-edge aeronautical research and design truly sets Vengo’s services apart from those of its rivals. Co-founders Brian Shimmerlik and Steve Bofill worked together in 2011 to implement this ground-breaking concept.

Brian has a strong interest in business and finance and enjoys studying complex operational data. Steve is passionately motivated to produce a unique and durable design and product.

The two transformed the large, out-of-date vending machine into a sleeker, more profitable machine. Vengo oversees marketing and consumer packaged goods, making it simple to shop online. This provides easy access to physical store goods.

Who Founded Vengo?

Brian Shimmerlik and Steven Bofill.

What Happen to Vengo at The Shark Tank Pitch?

The goal of Vengo is to have equipment installed in countless numbers of locations. Expanding the number of units a vending operator has may increase revenue. Additionally, since management is made easier by technology, “dumb” vending machines cannot compete in terms of time efficiency.

They are perhaps searching for cash from a shark to help with the increasing demand for manufacturing. In exchange for $2 million and a 12.5% share in their company, Vengo, Steven and Brian join the Tank. This is equivalent to $6 million in value.

According to Steven, they operate as a media company that makes money by offering service contracts for the software that runs the devices. They charge $2,500 for the device and make money off the software administration by selling it to vending machine companies.

The machines are maintained for a monthly fee of $20 per unit. They are in control of the things the machine contains. This year, Brian and Steven should make a million dollars. They assert that by incorporating the online market into the physical store, they are reinventing the retail industry.

Each month, they charge sellers $200 per SKU to exhibit their goods in the Vengo machines. The majority of their income comes from servicing agreements for the equipment and from advertising that is shown on the screens.

Mark Cuban describes Vengo as a “digital endcap.” He is leaving because he previously invested in a company that he thinks will compete with Vengo. Funding for Vengo has already totaled $3.5 million.

They think that their contracts with the biggest vending machine and chocolate manufacturer in the country, as well as their advertising platform and data mining capabilities made possible by Vengo’s software, justify their premium price.

Daymond John has a different stance. He leaves after calling the value “irrational.” Robert Herjavec disapproves. The company’s strategy, in his opinion, is “simply too complicated and unorganized for me.” He left already.

They are questioned about their debt by Kevin O’Leary. Steven adamantly asserts that they do not. Kevin offers them a deal that is less than half of what they had originally promised: a $2 million loan for 36 months at a rate of 7 percent in exchange for a 6 percent equity stake.

The layout is not Lori Greiner’s favorite. She thinks that the Vengo requires too much wall space for its intended use. When the couple asks her whether she would be open to working with Kevin, she responds with the same offer in exchange for 1% of the business.

Kevin and Lori present a counterproposal. They would offer the loan for 36 months at a rate of 7 percent, but they demand a total of 4 percent equity. Steven and Brian provide one more refutation. The rate they offer is 2.5 percent. The combined return for Lori and Kevin is 3.5 percent. Brian’s stake remains at 2.5 percent.

To their amazement, Kevin and Lori extend one more offer. The loan transaction will be carried out at a 3 percent rate. Brian and Steven reach a consensus and leave the tank with a signed contract with a shark.

Vengo After the Shark Tank Pitch:

The deal with the Sharks was never fully accomplished. But Vengo managed to become a Shark Tank success tale. In order to set up digital kiosks at NYU, Syracuse University, and the University of Central Florida in New York, they reached a deal with Blackstone Launchpad.

Vengo has recently entered the Hyatt Hotels sector, greatly extending its reach. The vending machines may hand out candy, cosmetics, or tiny electronic items like headphones, depending on the market. In 2019, they received $7 million in venture finance from a number of backers, including Gary Vaynerchuk.

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The company had 1425 machines installed as of November 2021, including in gyms, colleges, hotels, private clubs, residential communities, business buildings, and public transportation. The expected annual revenue ranges from $15 million to $25 million. As of September 2021, Vengo’s net worth is estimated to be over $50 million.

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