During Shark Tank Season 6, Keen Home co-founders Ryan Fant and Nayeem Hussain pitched their internet-connected HVAC vent business called Keen Home Smart Vents. They were seeking $750,000 for a 10% stake in their company. These smart vents, along with a mobile app, allowed users to redirect airflow to specific rooms based on their heating or air conditioning needs. It’s important to note that temperature sensors were not included in the original package at that time.

One concern raised by Kevin O’Leary was the valuation of the company. Previous outside funding had valued Keen Home closer to $5 million. However, the news that Lowe’s had pre-sold 35,000 units of the Smart Vents helped explain the valuation. Lowe’s also had exclusivity in the home improvement space for two years.

Mark Cuban and Lori Greiner both opted out of a deal. Mark felt that the Smart Vents were more of a feature than a standalone product, and he didn’t see potential for licensing it to a larger company. Lori found the product too confusing.

O’Leary offered $750,000 for a 25% stake in the company, stating that the growth of Keen Home hadn’t justified the asking price. Daymond John made a similar offer but also requested manufacturing rights. He later reduced his offer to a 20% stake. Robert Herjavec, however, wasn’t concerned about Mark’s assessment and offered $750,000 for a 20% stake.

The discussion then shifted to the founders’ reluctance to sell at a lower valuation than their previous investor. O’Leary proposed a 36-month $750,000 loan at 8.5% interest in exchange for a 10% equity stake. Lori was willing to split this deal. Robert countered with an offer of $750,000 for a 13% stake, valuing the company at just under $5.8 million. The founders accepted Robert’s offer.