Toolbox has been used for a very long time and it is more or less present in every household. However, they are still the old school type and the same weighty box from centuries.
Chris Stoikos and Jason Neubauer, the owners of Coolbox, have revolutionized the box in accordance with the needs of the contemporary system. They have introduced the world’s first smart toolbox system. It consists of a cord to charge the box and the devices inside the box. Additionally, it also has a whiteboard to keep notes, a light system that can be used outside the box as well, iPad stands, a magnet to keep extra bolts and screws, a clock, a wireless Bluetooth system, and a bottle opener to have a quick drink while working.
The owners came on Shark Tank to request $500K in exchange for 10% of her company. They also demonstrated how the smart toolbox works to differentiate its features from the traditional toolbox in the market. Let’s explore their journey on the show.
Coolbox Net Worth Shark Tank Update
Chris and Jason were looking for an investment of $500K in exchange for 10% equity in the company. At the time of the episode, they valued their company at $5 million. Chris and Jason successfully secured a deal with Lori for $500K as a line of credit at 5% interest for 15% equity in the company. The investment adjusted the company’s net worth to around $3.33 million. After the show aired, the company experienced a good boost in exposure. As per my rough estimate, the current net worth of Coolbox in 2024 is around $12 million.
$500K for 25% of equity, conditional on licensing going through
No
The Owner’s Backstory
Jason, along with his partner Chris Stoikos, comes from a construction background. Growing up, Jason learned the basics of the trade from his dad, who was an electrician. When the team came together to create The CoolBox, their goal was clear: to modernize the traditional toolbox.
Their toolbox is equipped with every modern-day feature including charging cords and a Bluetooth system to give a better time to the workers.
Initial Pitch
The owners came on the show to seek $500K for a 10% equity stake. Chris also demonstrated the different features of their smart toolbox including
Herjavec asked the first question regarding the cost of making the product and the selling price. Chris replied that it costs them $110 to make and they have pre-sold them for $190. However, after retailing in different stores, it will be $249.
Daymond inquired about the amount of Coolbox they have pre-sold so far. Jason answered that they have done a little over $370K in sales.
Lori then inquired about their record of shipment. Chris pointed out that they have done no shipment yet. They have been setting up their work in China these days.
Herjavec was confused regarding their high valuation as they are not retailed yet. Jason said that they had an order from Lowe’s for 8,000 units and interest from Black & Decker for licensing.
Cuban then asked about their investment in the business. Chris highlighted that they have not raised any money yet. They have only invested $50K out of their own pockets.
Lori asked about their patent on the product. The owner replied that they have utility on all the different features combined in the toolbox. They have invested a total of $250K in making the tools for the toolbox overseas.
Moreover, they have to send 2200 orders overseas, for which they have raised $1M for the inventory.
Shark’s Response and Final Decision
Daymond offered them $500K for 25% of their company with licensing contingency.
Herjavec then backed out of the deal because of the high price point for just a toolbox.
Kevin followed Herjavec and dropped the deal too as he considers the business to be too pricey and it has a lot to go before reaching a high scale.
Cuban also dropped the deal as he considers the product to be not safe enough and anyone can copy the same features.
Afterward, Daymond took the offer back.
Lori then offered them $500K for 30% contingent on a purchase order from Lowe’s. They counter-offered her $500K for a 20% equity stake.
Lori didn’t like the counteroffer and revised her offer to $500K as a line of credit at 5% with 15% equity in their company.
Although Coolbox made a deal with Lori it was not finalized. In response, Chris and Jason made adjustments to their business strategy, launching a more compact version of the Coolbox at a lower price point. The product is still available for purchase on its official website and on Amazon.
Thus, Coolbox went through ups and downs but eventually, it is still in the market. They were lucky to grab a deal on Shark Tank with Lori but it does not take any practical turn. However, they adjusted their toolbox to get to a cheaper price in accordance with the advice from the sharks.
Hey there, it’s Andaleb Youns. I am a freelance content writer and am currently pursuing a BS in English Language and Literature. I have expertise in writing Blog Posts, social media content, and copywriting. I know how it feels to be a student and still be dependent on parents to fulfill even basic daily needs. This realization became apparent while watching Shark Tank. Although I started watching this show out of boredom, it proved to be an inspirational show. The show made me realize the importance of hard work, being independent, and of having a business of my own. I still look forward to it for entertaining and inspirational content.
