Milwaukee native Matthew Mundt pitched his innovative Sleep Pods, an adaptation on a weighted blanket concept, in the hit television show "Shark Tank," earning him an impressive $300,000 from sharks Mark Cuban and Lori Greiner for a 20% stake in the company.
Mundt originally asked for $150,000 and a 10% stake during the show, which aired in Milwaukee Friday evening.
Mundt is a 2014 graduate of Milwaukee School of Engineering. He formerly worked for several big-name companies including Harley-Davidson Inc. and Apple Inc. as a product designer before he started his own business in March of 2019
"I’ve always been someone who’s had a difficulty sleeping ever since I was a child whether it was just general restlessness or having difficulty falling asleep. I’ve always been on the lookout for tips and tricks and products to help improve my quality of sleep," Mundt said.
He originally jumped on the bandwagon of weighted blankets several years ago. He enjoyed the relief with the pressure of weighted blankets resulting in a positive sleep experience but also quickly noticed the many disadvantages including the expensive price, the blanket's ability to trap heat and the difficulty in washing weighted blankets.
"Very quickly I found this expensive weighted blanket folded up on the floor of my closet never to be used again. I never forgot that initial feeling of that calm that was brought on by the pressure that was applied," he said.
It took about eight to 10 months for Mundt to develop his Sleep Pod, part of his Hug Sleep startup. Customers like to refer to the product as an adult swaddle. Mundt described it as essentially an undersized sleep bag made from four-way stretch material. When a person uses the Sleep Pod, it stretches and compresses to provide the same calming pressure as a weighted blanket.
Mundt launched his Hug Sleep company in 2019 with just $2,500 in startup funding. A New York Times article helped the company earn early attraction. In 2020, Mundt was laid off from his previous job, which forced him to take the company full time.
"It was something that always was in the back of my mind. Being laid off with very few job opportunities because of Covid really forced my hand to put the 80 hours a week into the company, what it deserved. That was really the kick-start to everything," he said.
Mundt works with a local contractor to produce every Sleep Pod within the Milwaukee area. While he could not disclose the number sold, he said it was in the thousands.
"I'm really proud to be from Milwaukee, Wisconsin. It was a goal of mine to keep as much production and manufacturing in Milwaukee," Mundt said.
Mundt said it was a childhood dream to appear on "Shark Tank." He grew up watching the show with his parents as a teenager.
"I'd never actually thought I'd be standing there pitching to sharks," he said.
All five of the sharks made Mundt an offer on the show.
Mundt's future goals for the company really revolve around the short-term focus on keeping up with rising demand of the Sleep Pods. He expects the "Shark Tank" airing will provide some increased attraction as well as the holiday season. Right now, the staff is just Mundt and his wife.
"We’re just looking to get through this initial wave of interest and intrigue and orders that we suspect we’ll be getting in," he said. "We definitely want to get Sleep Pod in the hands of everyone that can use it. That’s our main goal is just to help people sleep better."
