No matter how small they seem, bad habits like nail-biting and smoking can have an impact on your life. Pavlok is a smart wristband designed to prevent this by gently zapping users when they’re about to perform a bad habit. The device’s creator, Maneesh Sethi, pitched it on Shark Tank but didn’t get a deal. At present, Pavlok is worth $2 million.
Maneesh Sethi’s Background
Maneesh Sethi is from Miami, Florida and growing up he was passionate about programming. At 16 years old, he published a book titled “Game Programming for Teens.” He’s gone on to publish another three programming related books.
Maneesh was a bright student and attended Stanford University, where he studied computer science. After graduating, he worked as a web designer and was the editor-in-chief of a blog called Hack the System. Tired of working in tech, Sethi was seeking a new challenge.
The Story Behind Pavlok
Maneesh’s addiction to social media was the thing that sparked the idea for Pavlok. To tackle the problem, he hired someone from Craigslist to slap him if he used Facebook. This method worked but it was mainly a publicity stunt.
In 2013, he invented the Pavlok, a wearable device that uses shock therapy to break bad habits, improve your sleep and boost productivity. Sethi officially launched the company in 2014 after raising $283,827 from an IndieGoGo campaign. Then, he reportedly made a whopping $800,000 in sales.
Pitching Pavlok on Shark Tank
In 2015, Maneesh Sethi pitched Pavlok on Shark Tank and offered 3.14% of the company in exchange for $500,000. Unfortunately, the pitch went poorly and he came across as very arrogant.
Maneesh had no reputable studies to demonstrate that his technology actually worked. Therefore, the Sharks came out to attack and they were also skeptical about the firm’s sales. Robert Herjavec then pointed out that Sethi’s valuation was way too high.
However, Kevin O’Leary was interested as he had experience with aversion therapy. Thus, he proposed $500,000 in return for 3.14% equity, as a two-year loan at a 7% interest rate. Sethi rudely rejected the offer and stated he would “take an offer from anyone but Mr. Wonderful.” Kevin’s offer was fair but it appears Maneesh wasn’t serious about closing a deal.
Sales After Shark Tank
Even though Maneesh didn’t get a deal, the pitch was memorable and has attracted millions of views on YouTube. The controversy helped drive more publicity and sales to his website. This also helped him attract new investors to raise capital.
Maneesh was able to raise $200,000 in three funding rounds, with IncWell and MassChallenge as the lead investors. The money was used to develop more physical and digital products.
They released a Chrome browser extension to boost productivity and launched two versions of the ‘Shock Clock’, an alarm clock that shocks you awake. The Pavlok 3 Deluxe is the most expensive option and retails for $219. Some of the company’s most famous customers include the likes of Tim Ferriss and Neal Brennan.
Sales at Pavlok have grown steadily and they have served over 100,000 customers according to their website. Sethi’s strong focus on reducing expenses means the business is in a strong place now and employs 12 people.
In 2022, Pavlok made $371,000 in revenue according to getlatka.com. In 2023, the business should make around $400,000 in sales. As a result, the company is valued at $2 million. Personally, Maneesh Sethi has an estimated net worth of $2.5 million.
Currently, Maneesh is single and lives in Medellín, Colombia based on his Facebook profile. Fun fact, his older brother is Ramit Sethi, a personal finance expert who has his own Netflix series!
