What Happened to Velocity Signs after the Shark Tank?
What exactly are Velocity Signs?
Velocity Signs is a small-batch sign, apparel, and promotional product company in Austin, Texas. The objective of the firm is to give a motivating experience for its consumers and partners by producing high-quality items with appealing designs.
Scott Adams and Josh Flaherty, two college friends, founded Velocity Signs in 2006. Despite the fact that the firm did not begin operations until a few years later, in 2011,
Scott has a BSc from California State University-Sacramento and a background in sports marketing.
He is currently on the board of directors of the Stars for Life Foundation and the celebrity golf event director, as well as a licensed realtor. Josh, who graduated with a degree in engineering from the same university, is also a graduate of the same university. Josh’s whereabouts are unknown now that the firm has closed in 2019.
Who is Velocity Signs’ founder?
Scott Adams, a serial entrepreneur and the inventor of Gravity Signs, is the founder of Velocity Signs. His skills in marketing and advertising have been useful to his organization. Adams has been a partner in a number of companies, including a maker of outdoor sports equipment and a cellular carrier.
Velocity Signs was formed in 2006 by college buddies Scott Adams and Josh Flaherty. Despite the fact that the firm did not begin operations until 2011, it was only a few years later.
Scott comes from a sports marketing background and holds a bachelor’s degree in science from California State University-Sacramento.
In addition to being a registered realtor, he presently serves on the board of directors and directs the Stars for Life Foundation’s celebrity golf event. Josh is also a graduate of the same university’s engineering program. Josh’s present whereabouts are unclear following the demise of the firm in 2019.
Scott saw a human sign twirler drenched in sweat and suffering from heat stroke while driving along a Los Angeles street one hot summer day.
That’s where the idea for Velocity Signs came from: pity for the individual. After acquiring a patent and building a prototype with Josh’s technical expertise, they launched real manufacture in 2009.
By 2011, they were ready to go, and their clientele quickly expanded to include Burger King, Subway, and Ford and Chevrolet dealerships.
In their first year of operation, they sold 125 units and earned a whopping $257,000 in revenue.
Then, fearful of stagnation and anticipating market expansion, they increased output and expanded their market.
They started looking for investors. They principally sought to hire extra sales professionals in order to accomplish what they consider to be a sustainable $2.5 million for the coming fiscal year.
What Happened to Velocity Signs during Shark Tank pitch?
Josh and Scott appeared on Shark Tank after the company had earned a total revenue of $257,000, seeking an investment of $225,000 in exchange for 15% ownership of the company, with a pitch valuation of $1.5 million.
They show the Sharks an example of a sign-shaker with a sign before revealing their Velocity Signs.
They went on to say that the firm had sold 125 units in a year for a total of $257,000.
Clients typically receive a 15% return on investment. With 3,560 locations in 50 countries, Little Caesars is their largest customer.
Once the fundamental facts are determined, Robert Herjavec wants to know how the strategy will go and how much money will be invested. Josh informs them that the company’s goal for this year is to sell 1,200 units.
They intend to expand by hiring sales representatives and administrative personnel.
Robert has already invested in a failing billboard company; therefore he is not interested in purchasing another set of billboards. He’s goes out.
Kevin O’Leary was indeed intrigued by their projected profit. Josh states that they want to sell $2.5 million in the following year. Kevin O’Leary believes it is too early to expect such strong sales statistics, so he quits.
Mark Cuban likes the concept, but he’s not persuaded it’s sustainable or scalable, so he leaves it.
Barbara Corcoran discusses her real estate connections. She thinks the Velocity Signs would be fantastic for a Realtor to take in their car for an open house, but the 165 lab weight is prohibitive. Barbara walks out of the house.
Lori Greiner is the Sharks’ sole survivor. She adores the company. She believes it has potential, so she makes them a $225,000 offer in exchange for 30% ownership of the company.
Kevin O’Leary and Mark Cuban intervene, fascinated by the proposal, and offer to split the deal with her.
Barbara Corcoran, upset by the men’s interference, recommends dividing the agreement with Lori and reducing the equity share ratio to 25%.
Scott and Josh choose to work with Mark, Kevin, and Robert, accepting $225,000 in exchange for 30% equity in the firm, resulting in a valuation of $750,000 and the sale.
What Happened to Velocity Signs Following the Shark Tank?
Finally, Velocity Signs thrived with their on-air 3-Shark partnership after the deal with three Sharks and Adam and Josh was finalized.
They were able to reduce the price of the basic unit to $1,449 and the weight to 75 pounds, making the signs much more affordable. Barbara’s influence has also influenced the couple, who have changed their mannequin concept to a bespoke Real Estate signage product.
They also signed deals with national companies like AM/PM, Subway, Little Caesars, Burger King, Papa Murphy’s Take N’ Bake Pizza, Anytime Fitness, Chevy, Ford, Freeway Insurance, Del Taco, Sport Clips, Verizon Wireless, H&R Block, Golden State Warriors, Signarama, FASTSIGNS, Econo Lube N’ Tune, and many more. The company went out of business in January 2019.
Velocity Signs’ competitors
CNS IT, IPSUM Technology, ABM, and Sidif are the company’s main competitors.
Net Worth of Velocity Signs
The company was valued at $1.5 million during the pitch, but after the investor, the valuation was reduced to $750,000, and the company has since closed its doors.
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Velocity Signs FAQs
What is Velocity Signs?
Velocity Signs is a San Diego startup that offers customized, 11-by-11-foot signs for companies. The sign-shaker on the left has been hired by the National Car Rental Express to demonstrate its custom signs.
What is a sign-shaker?
A sign-shaker will travel to any of the 19,000 fast-food restaurants in the United States and Europe. He or she stands with a sign in front of the restaurant and aims to provide customers with a way to find their favorite chain.
How do they work?
The client will send one of these guys, who are normally very quick on his feet, to the restaurant location where he will attempt to entice customers.
What are the most popular signs?
Some of the most popular signs include Chuck E. Cheese, Shake Shack, and Golden State Warriors.
What other companies use sign-shakers?
Sign-shakers have been employed by companies like AM/PM, Subway, Little Caesars, Burger King, Papa Murphy’s Take N’ Bake Pizza, Anytime Fitness, Chevy, Ford, Freeway Insurance and Del Taco.
How much does it weigh?
The Velocity Sign has a weight of 165 pounds.
What are the signs made of?
The signs are made of high-impact polystyrene or HIPS.
Where can you see Velocity Signs?
Velocity Signs can be seen at many locations throughout California, and they are hired out by companies like AM/PM, Subway, and Little Caesars. They also hire sign-shakers out to businesses that provide services like T-shirt printing and real estate sign construction.
Where was Velocity Signs located?
The company was based in San Diego, CA.
Can Velocity Signs be shipped overseas?
Yes, the signs can be used anywhere in the world.
What are the dimensions of a Velocity Sign?
The dimensions are 11 feet wide by 11 feet high. They weigh 165 pounds and are made of HIPS which is a lightweight material.
How much does it cost to send a Velocity Sign across the country?
The approximate shipping fee for sending a velocity sign to an address within California would be $85.