Shrinkable Sofa

Daniel Chiriac, from Montreal, Quebec, asked for $200,000 for 15% of the Shrinkable Sofa, a space-saving sofa that expands and contracts in four steps and is designed for smaller living spaces. He spent nine years and about $100,000 developing the product and holds a utility patent for its functionality in the United States and Canada, with a patent pending in Europe. The sofa costs about $780 to make and would retail for around $2,000; the company is pre-revenue with no sales team yet.

Drew offered $200,000 for a 5% royalty on all future sales in exchange for buying the company, and Michele Romanow joined to help with direct-to-consumer growth. Manjit Minhas offered $200,000 for 17% equity, and Arlene Dickinson bowed out, saying it was hard to compete with Drew's offer. Wes Hall then offered $500,000 for a 5% royalty on the sofa and everything else Daniel Chiriac produces in the future; after a short discussion, Daniel Chiriac accepted a combined deal with Wes Hall, Drew, and Michele Romanow all involved at $500,000 for a 5% royalty.

Shrinkable Sofa is still operating and sells through its website.