There’s no perfect pillow that will appeal to everyone. What works for you may cause a stiff neck for someone else. This inspired Susana Saeliu and Kevin Li to create Pluto Pillow and sell customized pillows based on your sleeping style. They featured on Shark Tank but didn’t get a deal. Today, Pluto Pillow is worth $8 million.
The Founders
Susana Saeliu and Kevin Li are from Los Angeles, California. Kevin is not vocal about his personal background, but Susana has graduated from the USC Marshall School of Business.
After getting a degree in entrepreneurial studies, she founded Kora Branda and sold bamboo bath tissues. The startup became a huge success, and she sold it in 2011 to found a marketplace called TRADEX, Inc.
Saeliu worked in the customer service department and found out that many shoppers asked for a refund if the pillow they bought wasn’t comfortable. When she came up with a solution for this, she teamed up with her friend Kevin.
Establishing Pluto Pillow
The duo worked together to create a pillow design that can be modified to a user’s sleeping pattern, schedule, and comfort level. They sought out help from physical therapists and sleep specialists while developing their product.
The result was a comfortable foam that can be adjusted in height and length with a polyethylene surface. It’s covered by a polyester microfiber with customizable thickness and quality.
Using a unique algorithm, they manufacture hand-crafted pillows specifically tailored to the needs of buyers. The business launched in 2018 and made $473,000 in sales the following year.
Pluto Pillow’s Shark Tank Pitch
Susana and Kevin appeared on season 12 seeking $400,000 for a 5% equity. With an $8 million valuation, it appeared the entrepreneurs were more interested in the publicity rather than making a deal.
The Sharks were intrigued by the product initially but their interest faded once the founders revealed the product cost $95 with an $18 shipping fee. Daniel Lubetzky had concerns about the gross margin and if the business could scale.
Four Sharks backed out one by one. Robert Herjavec took everyone by surprise when he proposed $400,000 for 20%. However, the founders believed the equity was too much and went home without a deal.
Update After Shark Tank Episode
Before Shark Tank, Pluto Pillow mostly relied on social media and creative PR campaigns to promote their business. After the episode aired, it drove a lot of traffic and new orders on PlutoPillow.com.
The startup later launched three funding rounds, which were led by three venture capital investors: K2VC, 500 Startups, and Lombardstreet Ventures. This helped them introduce 35 different variations on their website and Alibaba.
Despite selling an expensive product, it is highly rated on Amazon with nearly 1,500 five-star reviews, indicating that the customizable design works. Pluto Pillow currently makes around $5 million in annual revenue and is worth an estimated $8 million.
The company published a blog post in May 2021, explaining what happened on the show and why they couldn’t accept Robert’s offer. It turns out Pluto Pillow already had other investors on board and didn’t want to impact future funding rounds.
