Second Slumber

Scott Amis and Rick Maddison, from Kelowna, BC, asked for $100,000 for 10% of Second Slumber, an online marketplace that resells open-box mattresses returned under the standard hundred-night guarantee from bed-in-a-box retailers. The company receives mattresses from retailers at no cost, resells them locally at about 50% of the original price (typically $600 to $700), and spends about $100 per bed on customer acquisition, giving close to 100% gross margin before overhead. The bed-in-a-box industry generated $250 million in revenue last year, with about 50,000 mattresses going to landfill at a cost of $125 each to the retailers; the company launched its website in August, has $250,000 in sales so far, and has one manufacturer under contract with letters of intent for volumes five times current levels.

Manjit Minhas went out, saying the business was too early stage. Wes Hall offered $100,000 for 20%. Arlene Dickinson went out, doubting a bed manufacturer would exclusively partner with a single small company. Robert Herjavec offered $100,000 for 25%, citing his experience with mattress company Endy. Michele Romanow then offered $100,000 for 20%, and after Robert Herjavec held firm at 25%, Michele Romanow matched that offer, which the founders accepted.

Second Slumber is still operating and sells through its website.