Vengo Labs is a company that makes digital vending machines. They don’t just look modern — the six-inch deep machines are mounted on walls like flat screen TVs, but they also use modern technology — a cloud-based inventory monitoring system that accepts debit and credit cards (no cash). The two founders of Vengo Labs, Steven Bofill and Brian Shimmerlik, pitched their business on Shark Tank in March 2016. They went into the Tank seeking a $2 million investment in exchange for 12.5% equity. They ended up making a different deal with Kevin “Mr. Wonderful” O’Leary and the Queen of QVC Lori Greiner: $2 million to be paid back over three years at 7 percent interest in exchange for 3 percent equity in Vengo Labs.
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After Shark Tank, Vengo Labs (based in Bethpage, New York) raised a total of $7 million in venture capital, with serial entrepreneur Gary Vaynerchuk and the Foundry Group among others. (Hip hop star Nas got in early, too.) Today, there are more than 500 Vengo machines installed in gyms, hotels, and on college campuses across 24 states. Each Vengo machine sells six SKUs of product and sells for $3,100, plus a monthly $15 software fee. Vengo Labs has also partnered with ViaTouch Media to collect and sell user data to help advertisers better target potential customers. Shark Tank airs Fridays at 9pm on ABC.
