Becoming a parent is full of wonder but it’s a stressful time. Hatch Baby can help put your mind at ease, it’s a diaper-changing pad with a smart weighing scale that tracks how much the infant eats, poops, and more. Founders Dave and Ann Crady Weiss pitched their product on Shark Tank and scored a deal with Chris Sacca. Hatch Baby is worth an estimated $40 million in 2023.
About the Founders
David and Ann Crady Weiss are a married couple from Palo Alto, California. Dave studied math and computer science at the State University of New York, and his wife has a JD from Georgetown University.
Ann started out as a corporate securities attorney for several firms before becoming a business development director at Yahoo! Dave began his career at IBM and later held senior positions in the IT space.
Founding the Company
When Ann had her first baby, she was anxious about her baby’s health. But instead of ignoring the issues, she came up with solutions. Hatch Baby wasn’t even her first idea. Ann founded Maya’s Mom, an online community for parents.
Maya’s Mom was eventually acquired by BabyCenter, where Dave worked as CTO. The couple already had a strong knowledge of the parenting niche before creating their smart-changing pad.
Hatch Baby was launched in 2014, one of the company’s biggest investors, True Ventures, invested $7 million into the startup. The device comes with a free app that helps users track their baby’s weight, eating, and pooping.
Shark Tank Appearance
A year after starting their business, Dave and Ann Crady Weiss were looking to raise more capital. The couple appeared on season seven of Shark Tank, seeking $250,000 for a 2.5% stake.
Dave and Ann delivered a strong pitch and clearly explained the benefits of their product. The Sharks didn’t like the valuation and weren’t convinced it was solving a real problem. Plus, the price was too expensive for the average household.
When the majority of the Sharks dropped, Ann revised her valuation and offered $250,000 as a convertible note that would later be converted to 25% equity. Guest Shark Chris Sacca liked the terms and agreed to invest.
After Shark Tank
After the episode aired, Dave and Ann were flooded with orders. The company sold out their first production run and did $1 million in sales. The deal with Chris Sacca closed quickly after the show. Despite their success, the founders realized the market wasn’t big enough and expanded their product line.
They created Rest, a smart night light that helps babies sleep better by changing colors and making white noise. Hatch Baby also rebranded to Hatch when they made an adult version of their sleeping tool.
In 2019, Hatch secured an investment from Amazon and boosted their presence on the platform. They have also continued to sell well in retail stores such as Walmart and Bed Bath & Beyond. Since Shark Tank, Hatch has done over $50 million in revenue!
One of their latest products, Restore, has an average star rating of 4.2 from 7,452 reviews on Amazon. Currently, Hatch generates around $5 million annually and has a valuation of $40 million!