"I was surprised" When Calm Strips convinced Shark Tank's Robert Herjavec into making a last minute deal

When Michael Malkin and his business partner, Luce Fuller, showcased their invention on ABC's Shark Tank, they had no idea how close they were to losing a contract. But when Robert Herjavec made a last-minute offer, everything was different.

Malkin's journey began when he was managing an Apple Store and found a startling way to calm himself: covering his finger with painter's tape.

"I was surprised at how helpful it was," Malkin said, reflecting on the moment that would lead to a multi-million dollar business.

He developed the concept into Calm Strips, a tactile sensory aid intended to alleviate restlessness and anxiety. He transformed the idea into a successful company with Fuller's help, eventually going to Shark Tank to get money. Herjavec's last-minute intervention helped them land the transaction that would launch Calm Strips to success after their high-stakes negotiation almost collapsed.

What happened during Calm Strip’s Shark Tank pitch?

Malkin and Fuller had a straightforward request when they appeared on Shark Tank: $250,000 in exchange for 10% of Calm Strips. The two started by playing an animation for the sharks that showed "Charlie," a figure who is having a bad day and finds solace by massaging a Calm Strip that is connected to his phone.

Curious, the Shark Tank sharks ran their fingers over the textured surfaces of the product, which were intended to stimulate their tactile senses. Without the distraction of larger fidget toys, these tiny stickers—roughly the size of an ordinary adhesive bandage—were supposed to help users focus and relax during stressful times.

The sales numbers, not merely the ingenious design, were what truly caught the sharks' attention. Malkin and Fuller disclosed that they had already made $2.5 million in sales in just one year of starting their company. This remarkable figure indicated that they had identified a real market need.

Despite the promising sales, not all sharks were convinced. Shark Tank's Daymond John dropped out quickly, admitting he simply "didn't understand the concept." Mark Cuban followed, citing concerns about potential scaling issues as the business grew.

Three sharks remained interested still: Robert Herjavec, Lori Greiner, and Kevin O'Leary. Herjavec made the first real offer, offering $250,000 in return for 35% of the company's stock. O'Leary responded by offering his standard royalty agreement structure, which is $250,000 with no equity and $2.50 per unit until he regains his investment, after which it will be $1 per unit constantly.

Shark Tank's Herjavec modified the terms of his offer to conform to O'Leary's royalty plan after recognizing the competition. He suggested that he pay $250,000 for each unit, then $1.50 until he reached $750,000, and then $2.50 until he received his entire investment back.

When Malkin and Fuller expressed hesitancy about both proposals, the negotiation reached a turning point. Frustrated by their indecision, Herjavec pulled his offer from the table entirely. It seemed the deal was dead.

In a dramatic turn, the entrepreneurs managed to convince Herjavec to reconsider. They reached an agreement, securing the $250,000 investment with Herjavec's royalty structure that would eventually convert to equity after reaching certain financial milestones.

How did Calm Strips fare after its Shark Tank appearance?

Following their January 2022 appearance, Calm Strips expanded significantly. The company now pulls in an estimated $1 million in annual revenue, with products available in over 200 retailers nationwide and in schools across the country.

"Post-launch feedback, particularly from the Autism community," Malkin explained, helped them realize their product would be useful for people of all ages, not just adults like himself.

This insight shaped their expansion strategy.

Fuller, who has an autistic child, emphasized that their goal was to create "more of a tool than a toy" for the autism community. She noted that, unlike other mental health brands that were "talking at people," she and Malkin focused on listening to their customers.

The product line has grown to include three different textures: soft sand, patterned pebbles, and extra bumpy river rocks. They've also launched Calm Breathing strips, which Fuller told Mashable "boosted Calm Strip sales and remain extremely popular."

The company's commitment to mental health support has led to valuable partnerships. Calm Strips has collaborated with BeWellInSchool, a wellness advocacy group, to create new strip designs. They've also partnered with QueerWell, an online therapist network for LGBTQ+ adults, to release a specialty line called "My Best Life."

With over 74,000 Instagram followers and a thriving customization business, Calm Strips has proven that sometimes the best business ideas come from personal necessity. What began as a piece of painter's tape wrapped around a finger has transformed into a tool helping thousands manage anxiety one strip at a time.

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You can watch Shark Tank on ABC and stream it on Hulu.