The Shark Tank episode 519 features Josh Faherty and Scott Adams as they pitch their motorized sign twirlers, Velocity Signs.
The company’s website claims that “Velocity Signs are portable, battery-operated, and durable signs used by small businesses to market their brand, special deals, events, and product launches.”
The invention is intended to take the place of the human sign twirlers that are occasionally seen in front of companies.
The advantage of Velocity Signs is that you do not need to pay them or worry about them overheating on a 100+ degree day.
If you’re still looking for a “human touch,” they’ve created a dummy that spins signage!
Adams created the company after observing a human sign twirler drenched in sweat on a particularly hot day.
He invented the Velocity Signs mechanism with the assistance of an engineer and patented the invention, which is manufactured entirely in the United States.
Velocity Signs serves several notable clients, including hundreds of national stores like Subway, Burger King, and even Chevrolet and Ford dealerships.
They are almost certainly looking for funding to expand their inventory and assistance with the corporate distribution.
What Is Velocity Signs?
You would think human sign twisters and telemarketers would not be people’s first choices for careers.
Velocity Signs is a company that makes portable, self-standing signs that move to attract passersby.
The company manufactures battery-operated, portable, and rechargeable gadgets 100% in the United States.
A small business can use it to attract customers and advertise promotions; essentially, it functions as a human sign twirler.
|Company Name||Velocity Signs|
|Founder||Scott Adams And Josh Faherty|
|Business||Sign waving Machine – The Original|
|Investment Seeking||$225,000 For 15% equity in Velocity Signs|
|Final Deal||$225,000 For 30% equity in Velocity Signs|
|Shark||Mark Cuban, Kevin O’Leary, And Robert Herjavec|
|Episode||Season 5 Episode 23|
|Business Status||Out Of Business|
Who Is The Founder Of Velocity Signs?
Velocity Signs was founded in 2006 by college buddies Scott Adams and Josh Faherty. However, the company did not begin operations until 2011, only a few years later.
Scott holds a bachelor’s degree in science from California State University-Sacramento and some experience in sports marketing.
His current role includes serving on the board of directors and directing the Stars for Life Foundation’s celebrity golf tournament, in addition to his role as a licensed realtor.
Josh is also an engineering graduate of the same university. Josh’s current whereabouts are unknown following the business’s closure in 2019.
Velocity Signs Before Shark Tank
One hot summer day, Scott observed a human sign twirler drenched in sweat and suffering from heatstroke.
This is how the idea for Velocity Signs came about: pity for the individual.
They began real production in 2009 after obtaining a patent and used Josh’s technical abilities in designing a prototype.
When they launched in 2011, they had an amazing clientele, including Burger King, Subway, Ford, and Chevrolet dealerships.
They were able to sell 125 units in their first year of initiating the business and generated a revenue of $257,000.
As a result of their fear of stagnation and their desire to expand their market, they began looking for investors.
The first goal for the duo will be to hire additional sales personnel to reach a $2.5 million target by the end of the financial year.
How Was The Shark Tank Pitch Of Velocity Signs?
The Shark Tank’s episode 523 features Josh and Scott seeking a $225,000 investment in exchange for a 15% stake in their company Velocity Signs.
Sharks receive a sign shaker bearing the message “Save Me, Sharks.”
They then display their Velocity Signs, which look like sharks.
The duo sold 125 units for a total of $257,000 in one year. Clients usually receive a 15% return on their investment.
Their largest customer, Little Caesars, has 3,560 outlets in 50 countries.
Robert Herjavec wanted to know what the investor intends to accomplish with the investment once the actual figures have been established.
Josh responds that the company expects to sell 1,200 units this year. They are planning to expand by hiring sales representatives and administrators.
Robert previously invested in a failed billboard company and is uninterested in the second set of signs. He has departed.
Kevin O’Leary is inquiring as to their estimated profit margin.
Josh states that the company’s goal for the next 12 months is to reach $2.5 million in sales.
O’Leary believes it is premature to forecast those high sales figures, and he departs.
Mark Cuban likes the concept but is skeptical about its viability and expansion. He exits.
Barbara Corcoran speaks of her contacts in real estate. Velocity Signs are ideal for Realtors to use while attending open houses – but the 165-pound weight is prohibitive.
Josh and Scott responded that they have a more compact, lighter version, but Barbara leaves because it is unavailable.
Lori Greiner is the only Shark remaining to make an offer. She likes the company. She makes them an offer of $225,000 in exchange for 30% ownership of Velocity Signs because she believes it has potential.
Kevin O’Leary and Mark Cuban leap in, intrigued by the offer, proposing to divide the deal with her.
Enraged by the men’s intervention, Barbara Corcoran proposes to share the contract with Lori and reduce the percentage to 25%.
Barbara makes use of her real estate connections to help increase sales. The Sharks begin bickering, each presenting their relationships with large stores.
Josh and Scott join Mark, Kevin, and Robert, accepting the $225,000 in exchange for a 30% stake in Velocity Signs.
Final Deal: Mark, Kevin, and Robert agree to invest $225,000 for a 30% stake in Velocity Signs.
Velocity Signs Shark Tank Update
Velocity Signs prospered despite Barbara’s declaration that the Tank battle was about gender and that she would never let a woman buy a sign from them.
The base unit is now priced at $1,449 and weighs 75 pounds, significantly reducing the size of the signage.
Barba’s influence also affected the team, creating a personalized Real Estate sign based on the mannequin model.
They were successful in securing agreements with companies such as AM/PM, Burger King, Papa Murphy’s, Subway, and Anytime Fitness, H&R Block, Signarama, Freeway Insurance, Golden State Warriors, Sport Clips, Little Caesars, Verizon Wireless, FASTSIGNS, Del Taco, and Econo Lube N’ Tune.
The company ceased operations in January 2019 for unexplained reasons.
What Happened To Velocity Signs After Shark Tank?
Velocity Signs has done fairly well for itself due to the investment and appearance on Shark Tank.
Josh and Scott have decided to use the Mannequin Real Estate Model in light of their appearance on Shark Tank, which results in a month after month of increased sales.
The new Mannequin Standard Model is now available for a reduced price of $1,449 compared to the older model.
Every Velocity Signs purchase includes a machine with circular motion, a motor built specifically for the machine, and a 12-volt battery with 14 hours of battery life (as well as a one-year hardware warranty). All this equipment is housed in a lightweight 75-pound box with a padlock.
Velocity Signs appears to be doing fairly well due to Mark, Kevin, and Robert’s investment.
However, it went out of business in 2019 without giving any reasons.
Is Velocity Signs Still In Business?
Velocity Signs has ceased operations after some significant developments following the investment and a shift to mannequin real-estate models for house shows.
The website is no longer active, and its social media pages have not been updated in a long time.