Best of Shark Tank

Vengo Labs – Digital Vending Machines – Update

SEASON 7 EPISODE 22

PITCH

touch screen mini wall-mounted vending machines

ENTREPRENEUR

Brian Shimmerlik and Steven Bofill

ASKED FOR

$2 million for 12.5%

GOT

$2 million for 3% to be repaid over 36 months at 7% interest

SHARK

Kevin O’Leary and Lori Greiner

STATUS

IN BUSINESS


Vengo creates digital vending devices that are wall-mounted like flat screens. These devices use cloud-based inventory tracking systems that accept credit and debit cards. The in-built technology helps the machine operator to monitor chart trends and other associated data functions from smartphones. Products are bought via a video and checkout unit. The machines display ads as well as multimedia content on screens. When products are not received, the sensors authorize an autonomous refund.

Vengo devices sell six products in one moment, generally personal care items, electronics (battery packs and cables), and snacks.

Vengo’s small size and technology makes it unique; it consumes 2 feet of wall space and is 6 inches deep.

Vengo cofounders, Steve Bofill and Brian Shimmerlik re-engineered the bulky and old vending machine and transformed it into a sleeker and more profitable device. Vengo handles both advertisements and consumer packaged goods, thus bringing about the convenience of online shopping. This enables easy access to products of brick-and-mortar retail. Brian says their priority is creating a frictionless experience for all their consumers.

The founders pitched Vengo on Shark Tank during March 2016. They were seeking $2 million for 12.5% equity but ended with a different deal. The Sharks, Kevin O’Leary and Lori Greiner offered $2 million loan for 3% of the company. The Sharks’ contingency was the loan be paid back in 3 years with a 7% interest.

Vengo After Shark Tank

After Shark Tank, the New York-based company garnered $7 million in venture capital from Vaynerchuk Gary, Arcade Beauty, the Foundry Group, among others.

Currently, Vengo has over 500 Vengo devices installed in hotels, gyms, and college campuses across twenty –four states. The machines cost $3,100 each and includes a $15 monthly software charge.

Vengo has also fostered a partnership with ViaTouch Media to acquire and sell user details to help advertisers get better prospective clients.

Other Vengo participants are Spins, Kensington Capital Ventures, and Bill Apfelbaum. Vengo has reached 45 college campuses. The partnership with the Blackstone LaunchPad brought digital kiosks to schools such as Syracuse University, New York University, and Central Florida University.

With installations in various Hyatt Hotels and multiple New York City locations, Vengo machines currently engage over 300,000 customers each month.

Brian said although product sales and advertising equally profit the company, he expects the marketing aspect of Vengo gadgets to be their future highest-selling point. Vengo’s ability to remotely adjust advertising and content to create targeted messages will become a more significant asset.

Visit the Vengo Labs website

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