Endy Sleep

Mike Gettis and Aashish Nathwani, from Toronto, Ontario, pitched Endy Sleep, a bed-in-a-box mattress company that compresses, rolls and ships mattresses directly to customers, made in Canada and sold exclusively online with free shipping and a 100-night trial, asking $1,000,000 for 5% of the company. Mattresses are priced from $675 to $950, cost about $350 to produce, and the company has sold over 15,000 mattresses since launching two years earlier, growing from $1,000,000 in sales in its first year to $10,000,000 the next year, with $20,000,000 in sales projected for the current year and an EBITDA margin of about 12%; customer acquisition cost runs at a 3.5-to-1 return.

Michele Romanow initially offered $1,000,000 for 10%, but withdrew that offer after the founders declined to move off their original valuation. Michael Wekerle and Manjit Minhas both went out, questioning the high valuation relative to margins, while Arlene Dickinson praised the growth but also felt the valuation was steep. Jim Treliving then offered $1,000,000 for 7.5%, bringing in Michele Romanow and Arlene Dickinson to join the deal, which Mike Gettis and Aashish Nathwani accepted.

Endy Sleep is still operating and sells through its website.