Invisiplug Surge Protectors - Shark Tank Update

Michael Barzman and Bryan O'Connell entered the Shark Tank seeking $125,000 for 10% equity in Invisiplug, their wood-grain surge protectors designed to provide style-conscious consumers with decorative alternatives to standard black, white, and beige power strips that typically clash with home decor. The product came in two varieties - standard and deluxe with built-in surge protection - and three attractive wood finishes: Natural, Medium Cherry, and Dark Oak, retailing for $14.99 and aiming to blend seamlessly with hardwood floors and furniture while providing the same functionality as traditional power strips with 450 Joules protection, 15 AMP circuit breakers, and 3-foot color-matched cords.

Despite being on the market for only six weeks at the time of filming, they had already sold 1,500 units generating $10,000 in gross sales, and their timing appeared perfect as they had secured placement in Lowe's Home Improvement Stores and were about to be featured in Oprah's O Magazine as a hot must-have item. The entrepreneurs also revealed significant retail interest, including approval for a trial run at Costco with potential for much larger orders, suggesting strong market demand for their aesthetic approach to a ubiquitous household necessity.

However, four sharks quickly dismissed the opportunity, with Mark Cuban stating they didn't have a real business, Robert Herjavec arguing the product was still conspicuous despite attempts to blend in, and Barbara Corcoran and Kevin O'Leary criticizing the company's grossly overvalued asking price relative to their limited sales history and early-stage development.

Lori Greiner ultimately made a deal, offering $125,000 for 10% equity plus $1 royalty per unit until loan repayment and $0.25 per unit in perpetuity, which the entrepreneurs accepted after negotiations, and initially the partnership proved successful with strong sales through QVC, Target, Staples, and Amazon, making Invisiplug one of Lori's featured "All Stars" companies.

However, the business took a dramatic and unfortunate turn in 2016 when co-founder Michael Barzman was arrested for felony assault with a firearm after allegedly threatening a neighbor with a semi-automatic handgun outside his home, posting $50,000 bail before the charges were eventually dismissed in November 2016. The company went out of business in December 2017, unable to recover from the negative publicity and legal troubles surrounding Barzman, who was arrested again in January 2020 for assault with a firearm (charges later dismissed) and most recently in April 2023 for creating and selling forged paintings attributed to the late artist Jean-Michel Basquiat, pleading guilty to making false statements to the FBI and receiving a sentence of three years probation, 500 hours of community service, and a $500 fine.

This represents one of the most dramatic post-Shark Tank stories, where initial business success was completely derailed by the founder's personal legal troubles, demonstrating how individual actions can destroy even promising ventures with strong retail partnerships and investor backing.