Jamie Siminoff pitches DoorBot(Ring) to the Shark Tank, which aired on November 15, 2013, and is the world’s first smartphone doorbell. Siminoff graduated from Babson College and has developed (and sold) technology-related enterprises.
He founded and sold Phone Tag, the first speech-to-text application in the world, to Ditech in 2009. He also established Unsubscribe.com, a service for cleaning up and unsubscribing from unwanted emails, which he sold to Trusted ID in 2011.
Jamie was working in his garage one day when he failed to hear the doorbell. He was late for a critical delivery. When he examined his phone, the proverbial light bulb went off, and he founded DoorBot.
The gadget is essentially comprised of a small camera, a speaker, and a button. The button initiates a “doorbell” that “rings” anywhere in the world on your smartphone.
You can view who is at the door and communicate with them via the speaker. The DoorBot connects to your home’s wifi network and communicates with your smartphone, regardless of whether you’re in the kitchen or on vacation.
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The DoorBot may be connected to various devices, and if it is stolen, the company will replace it for free.
What is Doorbot?
Doorbot is a smartphone application that lets the homeowner see and chat with the person at the door from anywhere. It is the world’s first wireless doorbell that provides two-way audio communication and one-way video monitoring.
Amazon acquired Doorbot in 2018, and it is now known as Ring. Doorbot was renamed, renovated, and extended by Amazon.
Who is the Founder of Doorbot(Ring)
Jamie Siminoff founded The Ring, a.k.a. Doorbot. Jamie devoted a significant amount of time building Doorbot. He was impoverished and developed the invention in his garage. He desired to see a decrease in crime in the neighborhood and developed Doorbot aka Ring. Jamie Siminoff’s net worth is now estimated to be about $300 million.
Doorbot/Ring Before Shark Tank
When Opportunity loudly knocked on the Shark Tank’s door in 2013, only one shark recognized him.
The ring was a pioneering concept that transformed daily life ahead of its time – the market for it didn’t yet exist.
Rings are an intuitive and reasonable concept, so much so that their invention is a little surprising since one would expect they are already in existence.
The device’s utility is so vital to society that you’re asked to perform a double-take when you hear about this, as though it had not previously existed? ”
When the product debuted on Shark Tank in 2013, its marketability wasn’t immediately apparent – at least to the sharks.
The lack of investment in this product – and the failure to recognize when they had an opportunity – would prove to be one of their greatest regrets.
Shark Tank Pitch of Doorbot/Ringbot
Jamie Siminoff made an appearance on Shark Tank Season 5 Episode 9. He was demanding $700,000 for a 10% stake.
Jamie Siminoff, founder and CEO of Doorbot, makes one of the most memorable entrances in Shark Tank history in this episode. Rather than striding through the double doors onto the stage as most contenders do, Jamie waits behind the entrance and gently knocks.
The sharks must determine who is knocking. “Who is this?” “It’s Jamie,” he says, and Lori invites him in pleasantly.
Robert Herjavec stated that this is a consumer service, not an online play, so he was not involved. Mark Cuban stated that he sees no growth in this business and is therefore exiting as well.
Kevin O’Leary presented an offer that included a loan and a royalty. However, Jamie refused the proposal and was forced to exit the competition without a deal. Additionally, Daymond John declined to invest in the company.
“Wouldn’t it have been wonderful to know who was behind the door before allowing me to enter? You can use my product.”
Siminoff now commands complete control of the chamber, with all the sharks standing at attention. He is demanding a mind-boggling $700,000 in exchange for a 10% stake in his company. (If you do the arithmetic, that works out to a $7 million valuation.)
However, given the company’s current value of more than a billion dollars, this would have been a steal.)
“Customers are investing billions of dollars in smart security technologies that connect to their smartphones,” Siminoff says. “However, the doorbell has remained virtually unchanged since its invention in 1880. Up to this point!” Siminoff, who is adorable in his excitement, whips out a prototype of his product, the Doorbot. (At the time, Ring was known as Doorbot.)
It resembles a silver soda can, complete with a concave glass lens on top and a built-in speaker at the bottom. Although the design is unattractive and awkward, the concept is excellent.
Siminoff demonstrates the concept using a dummy front door and doorbell connection, displaying the camera stream from his smartphone — (with his smartphone projected on a television screen to make the demonstration easier to view).
He presses the doorbell, and the Doorbot app notifies him of the guest by providing a live video stream of the front door. The software enables him to see and hear his visitor without having to open the door – a game-changer in terms of convenience and security. He can directly accept or deny the visitor via the app.
“Consider it like caller identification for your front door.”
Siminoff explains that when you tap ‘accept’ on the app, your doorbell transforms into a conventional apartment building intercom, allowing you to hear and speak with your guest. (In essence, you can see out but not into.) Two-way audio and one-way video are included in the product.
The sharks are intrigued by the product’s potential for home security but want to dive deeper into the financials before making any bids.
- Price at retail: $199
- Production cost: $81.83 per unit, landing
- Revenue streams: direct-to-consumer internet, with a contract with Staples in the works.
- To now, sales totaled $1 million during nine months.
- Direct rivals: none
Siminoff is astute in highlighting the distinctions between his product and the market’s closest competitors.
Several companies are developing products in this line – but they are often expensive multipanel security systems that do not provide two-way communication or smartphone connectivity. Siminoff explains that Doorbot is the first of its kind: a true original.
Mark Cuban gets into a disagreement with Siminoff at this point, daring to delve into philosophical waters (as only Cuban can).
He seemed anxious that other businesses would come along with a better, more intelligent product and suffocate this company before it can take off. Siminoff responds, “What technology is irreplaceable?” The doorbell will remain unchanged. We will always require this technology.”
Lori Greiner is the first to withdraw, citing that she lacks confidence in its ability to differentiate itself from similar products on the market, particularly considering its higher price point.
Mark Cuban is the next to an exit. In a scenario that seems almost laughably outlandish in retrospect, he declares that he cannot understand how this company is worth its $7 million valuations.
He wants to see something that could be worth “$80 or perhaps $90 million at some point.” (By 2020, the company is expected to be worth $1.2 billion.) He does not perceive the potential and hence withdraws.
Daymond and Robert then withdraw, claiming that the product can penetrate lower and mid-tier markets. (This writer would like to point out that Daymond Green’s red-and-white pinstriped shirt paired with a red silk tie is an outstanding outfit for this episode.)
With four sharks no longer available, Kevin represents Siminoff’s final shot at a deal. Kevin offers $700,000 for a 10% royalty (perpetuity) that decreases to 7% if the initial investment is recouped – but he demands 5% equity immediately. (This is a borderline predatory offer, which Mark Cuban scoffs at audibly.)
Siminoff considers it for a time before politely declining the offer. He counters by substituting an interest fee for the royalty, which he wisely points out can be paid off – unlike Kevin’s royalty-in-perpetuity offer. Kevin objects to the terms, and Siminoff walks away empty-handed.
Finally, there was no deal between Doorbot, aka Ring, and Sharks on the show.
How Does Doorbot/Ring Make Money?
Doorbot had yearly revenue of $1 million at the time of its appearance on Shark Tank. The same year, the company generated $5 million in revenue.
Doorbot is priced at $199 per unit, which is more expensive than video cameras, typically installed for security purposes. The cost of producing per unit is approximately $81.
As Jamie noted, Doorbot had annual sales of $6 million in 2013. It was increased to $460 million after four years. Today, the company is worth more than $1 billion.
What Happened To Doorbot After Shark Tank?
Though Siminoff exited the tank empty-handed, Doorbot (now Ring) has grown to be one of the most successful businesses ever pitched on Shark Tank.
One significant conclusion from the Ring debacle is that not all sharks are as adept at discovering billion-dollar ideas as they would like us to believe.
While Mark Cuban is never one to express regret, the remaining sharks are candid about their errors in this episode, viewing it as a squandered opportunity to invest in a billion-dollar firm.
Following the episode’s airing, the corporation generated $5 million in revenue.
Jamie also drew the attention of other individuals and investors, who subsequently invested in the organization.
After being acquired by Amazon following Shark Tank, the company now sells ten core goods through 16,000 locations. Ring presently employs 1300 people.
Doorbot was acquired by Amazon for $1.1 billion in 2018. Shaquille O’Neal was even employed by Amazon as a Ring spokesperson.
Ring is currently the highest-valued firm to participate in Shark Tank in history.
Jamie Siminoff – CEO of Ring — to the tank as a guest Shark five years after his original appearance as a contender, having grown to become the CEO of one of the world’s most successful security companies and a certified millionaire in his own right.
What is the Valuation of Doorbot/Ring?
Doorbot generated $1 million in revenue and a projected net profit of $7 million in 2013, yet the company continued to struggle. Shark Tank broadcast resulted in a surge in popularity and sales for the company.
Doorbot made his television debut on an ABC show four years ago. A $460 million valuation was attributed to Doorbot in 2015. This is the highest rating ever achieved by any Shark Tank company. Amazon acquired Doorbot in 2018 and now values it at over $1 billion.
Who are Investors of Doorbot?
The Doorbot company attracted the attention of many individuals even though it did not land a transaction on Shark Tank.
Richard Branson invested $28 million in the company in 2015, and it later became a Shark on Shark Tank. Goldman Sachs invested $109 million in the company in 2017.
The company raised $200 million in total. Doorbot also received investments from Goldman Sachs, Qualcomm Ventures, DFJ Growth, and Caufield Byers.
Jamie later sold Doorbot to Amazon for a reported $1 billion.
Is Doorbot/Ring Profitable?
Doorbot has grown tremendously since the Shark Tank episode aired. Jamie has a net worth of $300 million, and he sold his company “Doorbot” to Amazon for more than $1 billion. Sales at the company have increased from $1 million to $460 million since its establishment.