Phil Dumas presents his UNIKEY to Shark Tank on Episode 312. Based on expertise in biotechnology and electrical engineering, Dumas provides electronic keys that are dependable and convenient to use.
UNIKEY is the result: an electronic lock controlled by a smartphone or a specific key pin.
The technology was cutting-edge and well suited to meet the increasing demand for home automation and integrated security systems.
Dumas has already managed to promote its goods, but he needs a Shark deal to develop the company. Do the Sharks want a UNIKEY nibble, or is the Duma in for a cold night?
What is UniKey?
Unikey may seem like something that would be straight out of a science fiction film, but it truly isn’t.
Unikey allows users to open their homes, offices, vehicles, and other doors using their mobile phones.
Users of Unikey can unlock their doors without using conventional keys through the company’s proprietary technology.
Additionally, a user can grant restricted access to a third party. You can grant access to your cleaner for a specified amount of time before banning access.
The UniKey is an amazing technology designed by Phil Dumas that eliminates the need for traditional house keys by activating the lock via your smartphone.
UniKey systems can be controlled from any OSI, BlackBerry, or Android device with one click. You don’t lock and unlock your door with an App, but you do so with your phone when it is within range.
You will never again trip over your key while attempting to insert it into the lock, which doubles as a security mechanism for gaining quicker entry to any secured door.
|Product||An electronic key platform that turns a smartphone into an electronic key to replace keys, codes, and passwords|
|Investment Seeking||$500,000 For 33% equity in UniKey|
|Final Deal||$500,000 For 40% equity in UniKey|
|Shark||Mark Cuban and Kevin O’Leary|
|Episode||Episode 15 Season 3|
|Business Status||In Business|
Who Is The Founder Of UniKey?
The Unikey was invented by Phil Dumas. The engineer holds a bachelor’s degree in electrical engineering and a master’s degree in biotechnology.
He was part of Sequim’s team that developed a biometric residential bolt before launching Unikey.
Phil currently serves as the Chief Executive Officer of Unikey, a position he has held since 2010.
Phil studied electrical engineering, as previously stated. He later became interested in locking mechanisms.
The invention he created used his experience to eliminate the need for a standard key.
Several group members stated that traditional locks put homes at risk because keys can be easily replicated.
So he was able to create a mobile phone application that included the lock feature. Locks were only opened when within range of the device and locked automatically when the user left.
Unikey was initially available for use on the phone on which the app was first loaded, which was rather restrictive. The application was successfully adapted by Phil.
A user whose phone has Unikey installed can now grant permission to other users according to the changes.
Therefore, a spouse, child, or friend could also unlock the door using their phones. Phil also added compatibility with Blackberry, Android, and iOS.
UniKey Before Shark Tank
Phil Dumas began with an unusual passion. The physics of locking mechanisms occupied him, and he sought ways to improve upon a technique that dates back more than 2000 years.
Unikey Technology was founded by him, a company that incorporates traditional house locks with smartphone technology.
Here is how you can predict whether or not the Sharks would recognize the benefits of such a technology.
How Was The Shark Tank Pitch Of UniKey?
Phil Dumas entered the stage after exiting the Shark Tank. His business is Unikey Technologies, and he identified himself as such.
He requested a $500,000 investment from the Sharks in exchange for a 33 percent ownership in the company.
His passion seemed to be access control, which seemed odd. He stated that what makes the market unique is that the key has been constant for the last 1100 years.
Phil suggested that you may discard your clumsy keychain. By putting the key inside the mobile phone, he hoped to reinvent the key. As he walked, he carried an illustration of a key ring.
Phil was the one who demonstrated. He stated that he was able to manage the lock as long as he was within its range.
Mark was safely outside the door when Phil handed him his phone. When he went back to the door, he allowed the Sharks to see that he could lock it with the button but not unlock it since the phone was too far away to be seen.
Phil demonstrated to them that after he re-entered range, he was able to re-open the door.
He added that another unique feature of Unikey is that by storing the key on the phone, users can send and receive keys on an ongoing or a one-time basis.
If a buddy is visiting from out of town, you can text them a unique key. When a maid visits your home on a specific day, he can continue working throughout the visit.
A permanent key can be mailed to your children or spouse. All keys are under your control and can be erased at any time.
Phillip’s presentation was well received by Robert. He asked whether the Unikey Technology could be adapted to an existing lock or if brand new keys, locks, and doors must be purchased, respectively.
Philip explained that the lock was a new one with a two-bolt key in and two bolts out. It appears that Phil believes the user will need to replace the lock.
He claimed that he’s currently working at Black & Decker. When Kevin inquired whether he could use the original key on the lock, he replied, “Yes, of course.”.
Phil stated that you could, which means that you could use a regular key if your phone dies or you are without it. Damon inquired as to the patent status of Unikey Technologies.
Phil stated that they had submitted an exhaustive Provisional Patent. He added that a portion of the money would be used to convert it to a non-provisional status.
A question was raised by Kevin as to whether Phil was planning to license the technology to a larger manufacturer already producing locks. That is what Phil stated.
The inventor said he is negotiating a licensing agreement with Black & Decker to use his technology in their locks and marketing.
Kevin is aware of the next move for Black & Decker. The items will be delivered to Black & Decker tomorrow, and they will be discussed at the closed-door executive meeting next week.
Barbara inquired as to the price he intended to sell it for. Phil stated that he intended to sell it for between $149 and $199. He stated that ultimately, it was up to Black & Decker to determine the price.
Kevin was curious about the cost difference between Unikey Technologies and a standard lock. She informed him that it was approximately $30.
Kevin stated that the difference was $100, which was quite astounding. Kevin is curious whether he should be concerned about the price differential given the state of the economy at the time.
She assured him that he had nothing to fear. He said that individuals were still purchasing Technologies.
Robert expressed great curiosity. If he wants to know how I feel, he should just go to Black & Decker and raise the money in exchange for one year of market exclusivity.
According to Phil, Black & Decker does not fund development. He continued by claiming that they would be willing to pay a royalty.
Phil mentioned the possibility of self-marketing it and earning great money online.
Mark asked the number of royalties he would receive if he struck a contract with Black & Decker. Phil stated that he would like to earn approximately 7.5 percent of gross revenues.
Kevin stated that Phil’s investment request value was one and a half million dollars. He was curious as to how Phil arrived at that figure.
Phil stated that a million dollars were a real investment for a technological business such as Unikey Technologies, even at the pre-revenue stage.
Kevin inquired as to how much additional funding he would require to sell the first Unikey Technologies.
She stated that he would require 1.1 million dollars to achieve profitability. Phil mentioned that he intended to invest in two rounds.
Robert stated that it would not get him to profitability; rather, it would bring him to the conclusion of the proof-of-concept phase.
Phil indicated that the initial $500,000 would be spent to safeguard the patent. He would then require engineers and equipment.
The next level of investment would require a bare minimum of $500,000. He said. Daymond notes that the $500,000 was a substantial sum of money.
Robert urged Phil to concur that the contract with Black & Decker is critical to the future viability of Unikey Technologies.
Phil stated that the transaction with Black & Decker was a one-off, but he was not putting all his eggs in one basket.
Robert inquired whether the only risk he would be incurring was investing the money, building the technology, and ensuring that it functioned.
Phil stated that he would ensure that Robert received his money if forced to sell it all independently. Mark departed at that point.
Barbara is curious how he intends to reassure them that they will receive a return on their investment. Phil stated that he was formerly employed in the private equity industry.
He was a mechanical engineer. Kevin added that he was in excruciating pain at the moment due to his admiration for Phil and the way he narrated the narrative of making it happen.
The real estate market had devolved into a complete mess, according to him. Phil’s product was three times the price of the present solution that is installed in every door.
They’ve taken on many development risks, and they lack the marketing advantages Black & Decker has.
Phil stated that they were not directly related to the new Home Market because individuals purchase aftermarket home automation products.
Kevin stated that there are numerous different transactions and aspects of life. He indicated that he admired the story behind Unikey Technologies but was concerned about the danger.
Kevin placed $100,000 down and desired 50% ownership of the business. Robert stated that he appreciated Phil’s affection for something as mundane as locks.
Philip was told that Robert was prepared to give him $1 million to acquire 75% of the company.
Phil would receive only 25% of the enterprise. Robert stated that Black & Decker was required as a proof of concept. He required them to establish the market.
Barbara explained and said that she would become angry if she had to pull out her keys right now.
She stated that she would offer him $250,000 in exchange for 25% of the business, but only if he could bring in Mark Cuban for the remaining 25%.
Daymond complimented him on his presentation. The exit wounds Daymond had from previous transactions contributed to his financial woes.
Daymond offered him the entirety of the $500,000 in exchange for 40%. Mark prefaced the transaction by stating that he was aware that once he made his bid, he would be required to raise an additional $600,000.
Mark stated that he adores Barbara but did not believe Unikey Technologies was her area of expertise. Kevin’s strength, he stated, is berating people over numbers.
Mark offered to match Kevin’s $100,000 commitment and provide the remaining $400,000. Mark requested a 45 percent equity stake.
Phil informed Mark that he had come in to make a deal with him. He responded with 40% equity. Mark shifted his gaze to Kevin.
Mark stated that he would divide the difference at a rate of 42%. Robert pleaded with Phil to reconsider his offer. He was averting the necessity of another round of investment.
Robert stated that it was additional cash and twice the amount he had requested. Mark remarked that Phil should understand, based on his knowledge and experience, that it is not just about the equity figure but also about the Sharks’ support.
Phill stated that he understood and that they would work out a deal at 40%. Mark is curious as to how he will be protected in the upcoming round of investments.
Jill stated that they would receive two board of director seats. Kevin inquired if he already had a board of directors but was informed that he was the sole member.
The Sharks would retain board control, while he would retain stock control. He stated that there would be a power balance.
Kevin and Mark reached an agreement, and they struck a contract. Robert appeared displeased and remarked that the deal was a lousy one. Let us examine whether he was correct.
Did UniKey Get A Deal on Shark Tank?
Phil Dumas received proposals from all five Sharks in Season 3 Episode 15 of Shark Tank for his revolutionary access control system.
Kevin O’Leary and Mark Cuban offered $500,000 for 40% of his company, but the deal fell through.
What Happened To UniKey After Shark Tank?
UniKey has grown significantly since its first appearance on Shark Tank and has managed to keep up with technological advancements.
Unikey Technologies has established numerous relationships with Fortune 500 companies, including Kwikset, Nest, Honeywell, Haven, and Weiser.
Kevo and Kevo Plus are two of their current smart locks, both of which can be controlled via your phone.
Kevo Plus also enables remote door unlocking, so you don’t have to be physically present at the door. There will be new devices, like the TouchKey and the Commercial Reader, soon.
UniKey Shark Tank Update
Although the Shark agreement appeared to be completed on television, the arrangement ultimately fell through.
Dumas acquired investment from another investor who gave more money in exchange for less stake than the Sharks offered.
Although the due diligence procedure was lengthy and laborious, UNIKEY eventually grew into new markets.
Today, the device is sold through license agreements with Kwikset (dubbed Kevo), Nest, Honeywell, Haven, and Weiser.
Hotels and cruise ships have used the locks; many home security systems use them as well. While UNIKEY had the Sharks fighting, Dumas got the best deal.
Dumas has raised $20 million in venture funding throughout the years through a series of rounds.
As of September 2021, the company employs 60 employees in Orlando and is expected to continue growing, as the smart lock sector is worth $1.7 billion. UniKey Annual income is $5.4 million as of September 2021.
Is UniKey Still In Business?
UniKey has increased its offering of products across multiple industries, resulting in a thriving business.
Phil’s appearance on Shark Tank attracted the attention of several prospective investors.
Unikey secured $1.1 million in seed funding from ff Venture Capital shortly after appearing on Shark Tank. Later in the decade, the corporation would secure several additional substantial investments.
Kwikset, an established lock manufacturer with ambitions to enter the smart lock industry, entered into an agreement with UniKey following the initial seed round of funding.
The Kevo, developed by Kwikset using UniKey technology, was released twelve months later.
The company soon secured a second agreement with ERA and began expanding internationally.
The success of those first two alliances prompted UniKey to accelerate its expansion, forming more strategic partnerships and expanding into new markets.
Over 18 partners are currently associated with UniKey in 65 countries. Also, the company holds 15 patents in access control, including its touch-to-open innovation, and is backed by over $20 million in venture capital funding.