Velocity Signs - Shark Tank Update

Entrepreneurs Scott Adams and Josh Faherty pitched Velocity Signs, their battery-operated mechanical sign twirling machines, seeking $225,000 for 15% equity to solve the problem of human sign twirlers getting overheated and exhausted while advertising for businesses. The concept was born when Scott witnessed a human sign twirler drenched in sweat on a scorching hot day, prompting him to develop a patented, 100% American-made automated alternative that could replace expensive human labor while providing consistent, reliable advertising without weather-related limitations.

The mechanical devices were designed to mimic the attention-grabbing movements of human sign spinners, available in various configurations including standalone units and mannequins for businesses wanting a more human-like appearance, with the ability to operate continuously without breaks, overtime pay, or concerns about employee welfare in extreme weather conditions. At the time of filming, Velocity Signs had sold 125 units in twelve months, generating $257,000 in sales with an average customer return on investment of 15%, and had secured impressive clients including dozens of national retailers like Little Caesars (with 3,560 locations worldwide), Subway, Burger King, and major automotive dealerships including Chevy and Ford.

The heavy-duty units originally weighed 165 pounds and cost approximately $1,000 to manufacture while retailing between $1,899 and $2,850, though the founders acknowledged the weight was prohibitive for some applications and had developed lighter, more portable versions to address market feedback from potential customers, particularly in the real estate sector where agents needed mobile advertising solutions.

The pitch generated intense competition among the sharks, with Lori Greiner initially offering $225,000 for 30% equity, followed by Kevin O'Leary and Mark Cuban jumping in to split the deal, ultimately leading to a heated bidding war where Scott and Josh accepted an offer from Mark Cuban, Kevin O'Leary, and Robert Herjavec for $225,000 in exchange for 30% equity. The three-shark partnership proved initially successful, helping Velocity Signs achieve remarkable growth with $3 million in sales the following year while securing major corporate clients including Ford Motor Company, McDonald's, Domino's, AM/PM, Papa Murphy's, Anytime Fitness, Verizon Wireless, H&R Block, and many other household names.

The company successfully addressed earlier concerns by reducing the basic unit price to $1,449 and weight to 75 pounds, making the signs much more manageable for smaller businesses, while also expanding into specialized markets including real estate and developing customized signage products for various industries. The business flourished for several years with national chain partnerships and successful product improvements, demonstrating strong market demand for automated advertising solutions that could operate reliably in all weather conditions without the ongoing costs and complications of human employees.

However, despite the impressive client roster, strong sales growth, and backing from three prominent sharks, Velocity Signs unexpectedly went out of business in January 2019 for undisclosed reasons, representing one of the more surprising closures among companies that had achieved significant post-Shark Tank success and major corporate partnerships.