Shark Tank US | Students From Storage Scholars Surprise The Sharks

Summary

Two college students, Matt Gronberg and Sam Chasing, pitch their business, Storage Scholars, to the sharks. The service offers a convenient storage solution for college students during summer breaks, where fellow students help with packing, moving, and storing their belongings. The business has grown to 23 campuses, with impressive sales and an innovative tech platform. After receiving multiple offers from the sharks, they negotiate with Mark Cuban, who ultimately agrees to invest $250k for 10% equity, helping them expand and eliminate college debt while creating jobs on campus.

Takeaways

• 😀 The founders of Storage Scholars, Matt and Sam, are seeking $250,000 for 5% equity in their company.
• 😀 Storage Scholars is a student-run business that helps students move out of their dorms and store their belongings during the summer break.
• 😀 The service involves delivering boxes, tape, and packing supplies to campuses, handling the packing and storage, and then delivering belongings to the students' new rooms when they return for the next semester.
• 😀 The entire moving process is handled by trained fellow students, providing high-paying jobs on campus.
• 😀 Storage Scholars is currently partnered with 23 colleges across 9 states, including campuses in New York, Texas, and their alma mater, Wake Forest University.
• 😀 The cost of the service averages $559, which includes supplies, storage for four months, delivery, and insurance.
• 😀 Their custom-built web app automates the process of handling thousands of moves across various campuses, contributing to their high customer satisfaction (4.8-star rating).
• 😀 Matt and Sam both started the business while in college, which allowed them to graduate debt-free despite facing significant student loan debt.
• 😀 The company has made $1.826 million in sales this year, with their largest school (Wake Forest University) handling over 700 storage customers.
• 😀 After multiple offers from investors, they secured a deal with Mark Cuban for $250,000 in exchange for 10% equity, valuing the company at $3 million.

Q & A

What is the main service offered by Storage Scholars?

Storage Scholars provides a service that helps college students move out of their dorms by packing and storing their belongings during the summer. The service includes boxes, bubble wrap, and labels, with trained students handling the packing, storage, and delivery to their new room when the students return.

How much funding are Matt and Sam seeking for their business?

Matt and Sam are seeking $250,000 for a 5% equity stake in their company, Storage Scholars.

What is the business model behind Storage Scholars?

Storage Scholars partners with colleges to offer a full-service storage solution for students. Students can sign up online, pay a refundable deposit, and receive packing supplies. The company handles the entire process, including moving, storing, and returning students' belongings to their new rooms.

How do Storage Scholars manage the logistics of moving students' belongings?

Storage Scholars uses a custom-built web app that automates much of the logistics for their operation. This technology allows them to manage thousands of moves across multiple campuses in the same week, ensuring efficiency and accuracy.

What is the typical cost of Storage Scholars' service for a student?

The typical cost of the service is $559, which covers the packing supplies (boxes, tape, etc.), storage for four months, delivery, and insurance for the student's belongings.

How did Matt and Sam fund their business while still in college?

Matt and Sam funded their business by working through their college years. Matt, in particular, started the business to pay off over $100,000 in student debt. Both of them worked long hours to build their company, eventually eliminating their debt and growing the business.

What was their revenue at the time of the pitch?

At the time of the pitch, Storage Scholars had generated $1.826 million in revenue.

What differentiates Storage Scholars from competitors in the market?

Storage Scholars differentiates itself by offering a full 'key access' service, where students can pack, lock, and leave their belongings with minimal effort. They are the only company that provides this level of convenience, with trained fellow students doing the moving and using custom-built technology to streamline operations.

How many schools have signed up with Storage Scholars by the time of the pitch?

Storage Scholars had signed up 23 college campuses, ranging from schools in New York to Texas, with Wake Forest University being their alma mater and starting point.

How did the Sharks respond to Storage Scholars' pitch?

The Sharks were impressed by the business, with offers from Kevin and Damon for $250,000 for 20% equity, while Robert offered $500,000 for the same 20%. Mark Cuban later countered with an offer of $350,000 for 8% equity, which Matt and Sam eventually accepted.