"$1.2 million in sales" — When SmartGurlz' coding robot won over Shark Tank's Daymond John

Entrepreneur Sharmi Kneller (née Albrechtsen), just seven months after her appearance on ABC's hit show Shark Tank, reported:

"We now have more than $1.2 million in sales, are working with Walmart on a brand new product line for 2019 and have got a new partnership with Girl Scouts in America. Most excitingly, we recently gained the legendary Kari Byron from 'MythBusters' on board as our Chief Creative Officer."

Her company, SmartGurlz, created quite a buzz when it appeared on Season 9 in November 2017, showcasing dolls that connect to an app requiring coding to make them move.

The innovative product caught the attention of fashion mogul Daymond John, who saw tremendous potential in Kneller's mission to inspire more girls to enter tech fields. After some negotiation, Kneller walked away with a $200,000 investment in exchange for 25% equity.

The deal represented more than just financial backing—it validated Kneller's vision. It began in 2016 when she noticed her daughter's disinterest in robotics toys marketed primarily toward boys.

What followed was a remarkable journey from prototype to multi-million dollar business, demonstrating how a simple parental observation could transform into a groundbreaking product aiming to bridge the gender gap in STEM education.

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What happened during SmartGurlz’s Shark Tank pitch?

Kneller's journey into the world of tech toys began with a simple observation. After buying her daughter a robot, she noticed the child wasn't particularly interested. The reason seemed obvious to the observant mother.

"The themes of the robots on the market were too boy-oriented — focused around fighting, shooting and even blades — instead of story-based characters," Kneller explained to Bustle in 2018.

This insight sparked an idea: create robot toys specifically designed to engage young girls through storytelling rather than combat. By 2016, SmartGurlz was born—a collection of dolls riding robotic scooters that girls could control through coding exercises on a connected app.

The concept was revolutionary not just in design but in purpose. Each doll came with its own STEM-focused personality and backstory, making coding more accessible and appealing to an audience often overlooked by tech toy manufacturers.

SmartGurlz's big break came when a Shark Tank producer spotted Kneller showcasing her product at Las Vegas' Consumer Electronics Show. Impressed by the concept, the producer fast-tracked her application.

"[He saw] the 'excitement' — he chatted with me for 20 min and then said 'no need to pitch — you are on to the next round!'" Kneller recalled to Medium.

Eight months later, she found herself in the Shark Tank facing Robert Herjavec, Lori Greiner, Mark Cuban, Daymond John, and guest Shark Richard Branson. Her pitch was straightforward: $200,000 for 5% equity in SmartGurlz.

The presentation was enhanced when two young girls entered the Shark Tank, demonstrating how to use the app to control the dolls' movements. The Sharks were noticeably impressed, especially after learning about the profit margins—production costs of around $18 with a retail price of nearly $80.

While most Sharks expressed interest in the concept, they had reservations about the toy industry. Herjavec worried about market decline, Greiner cited past disappointments with doll products, and both Branson and Cuban opted out for various reasons.

Shark Tank's Daymond John, however, saw tremendous potential. He offered $200,000 for 30% equity, emphasizing his belief in getting girls into engineering early. After some negotiation, they settled on 25% equity, and SmartGurlz secured its Shark.

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What happened to SmartGurlz after its Shark Tank appearance?

For SmartGurlz, the Shark Tank effect worked well. In the middle of 2018, Kneller reported sales of over $1.2 million and revealed alliances with the Girl Scouts of America and Walmart, a major retailer.

The company's recruitment of MythBusters star Kari Byron as Chief Creative Officer is perhaps its most remarkable achievement since it lends celebrity legitimacy to their goal of encouraging girls to pursue STEM.

The momentum continued when SmartGurlz entered the educational market with the launch of the Smart Buddies product line, which was created especially for use in classrooms. Another round of investment resulted from this growth, raising $2.7 million from investors such as Morgan Stanley and the NYU Investment Fund.

By 2020, Kneller said on LinkedIn that SmartGurlz had sold almost 50,000 devices and was worth $9 million, bringing in over $3.2 million in revenue—quite the return on Daymond John's original investment.

SmartGurlz has had difficulties in recent years despite its remarkable early success. Many merchants do not carry the company's items, and their website is no longer up and running. Since August 2020, when Kari Byron left her position, social media accounts have been inactive since 2021.

Kneller herself, however, is still involved in business endeavors. She co-founded Simply Shroom Cafes, plant-based coffee cafes created as safe spaces for women in Scottsdale, Arizona, in 2023 while still listed as the CEO of SmartGurlz on LinkedIn.

She is still steadfast in her resolve to advance women in technology. During Women's History Month in 2023, Kneller discussed the significance of expanding the number of women in STEM disciplines at Google's Knowledge and Innovation Summit.

This tenacity in supporting women in traditionally male-dominated fields demonstrates that, even though items change or disappear, SmartGurlz's mission endures thanks to the founder's continuous efforts.

Regardless of whether SmartGurlz regains its previous success or continues to be a milestone in Kneller's business career, its influence on encouraging young girls to experiment with robotics and coding has had a long-lasting effect on the toy industry and STEM education.

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You can watch Shark Tank on ABC every Friday at 8:00 pm ET, with streaming available on Hulu.