Rated as one of the most successful businesses to appear on Shark Tank, Scrub Daddy is a cleaning tools company created by Aaron Krause. Its bestselling product is the multi-purpose polymer sponge with a smiley face. Scrub Daddy was valued at $209 million in October 2019 and is on track to make over $100 million in revenue for 2022.
About the Founder
Aaron Krause, the owner of Scrub Daddy, is the son of two doctors in Wynnewood, Pennsylvania. He started inventing things at an early age and later studied psychology at Syracuse University.
After graduating, he started a car washing company, where he first understood the nature of various cleaning materials. He wasn’t satisfied with the buffing pads available at the time, so he made his own invention.
He got a patent for his buffing pads, which became his new business focus. Krause also made the necessary manufacturing devices for his new creation. He sold the car washing business not long after.
Establishing Scrub Daddy
The aspiring entrepreneur developed his own cleaning products for his manufacturing machinery. He got a tailor-made foam from Germany. He sliced it into a two-holed, ridged circle to help him hold it better. This was the birth of the smiley face sponge.
In 2008, Krause’s buffing pad company was acquired by 3M, the biggest manufacturing firm in the world. However, his infamous sponge wasn’t included in the purchase.
Three years later, he discovered that his sponge had the ability to harden in cold water and soften in hot water. In 2012, Scrub Daddy was officially launched, and Aaron presented it on the home shopping network QVC.
Shark Tank Appearance
Krause’s stint with QVC was very fruitful, having all his units sold out in just eight minutes. However, he knew that his startup was far from reaching its true potential. After watching Shark Tank with his wife, he thought that it would be a good option to raise capital and scale his business.
In 2012, he made a very energetic presentation that captured the attention of the Sharks. He initially offered a 10% stake in his company in exchange for $100,000. Mr. Wonderful, Kevin O’Leary, wanted 50% for the same price, but Aaron declined without hesitation.
Daymond John proposed to split a deal with the Queen of QVC, Lori Greiner. However, Lori wanted to go solo, offering $200,000 for 20% equity and Aaron Krause happily accepted the offer!
After Shark Tank
The day after Aaron introduced his product on Shark Tank, he sold 42,000 sponges in less than seven minutes. Lori Greiner also helped the cleaning tool brand reach retail stores across the United States. It also got sold in online stores.
By January 2017, Scrub Daddy had done over $100 million in revenue, and it hasn’t slowed down since. Aaron and his team are using TikTok to advertise products through viral marketing. They are now selling more than 20 products! In 2021 revenue growth was 80% year over year and in 2022 the company will do over $100 million in sales.
Today, Scrub Daddy is considered the third-biggest sponge provider in America. With this, Aaron Krause’s personal net worth is $70 million and Scrub Daddy is worth $209 million.
