On Shark Tank episode 625, three interior designers show up to feature a new interior designing concept dubbed Zoom Interiors. Elizabeth Grover, Madeline Fraser, and Beatrice Fischel-Bock met in GWU (George Washington University) design school while studying for a bachelor’s degree in design.
The trio decided to develop a concept while design fused with tech and transformed the interior design world. They aimed at making interior design accessible and affordable to everyone through an online platform. They conceptualized their idea and stepped up to seek funding.
The trio featured in Shark Tank is seeking $100,000 for 20% equity in Zoom Interiors. They pitched their concept to the sharks. Did they leave with a deal? What happened to Zoom Interior after Shark Tanks? To get the answers, read on and get the latest status of Zoom Interiors years after Shark Tank’s debut.
Zoom Interiors Overview in Shark Tank
| Company Name | Zoom Interiors (rebranded to Hutch) |
| Website | https://www.zoominteriors.com/ |
| Episode | Season 6 Episode 28 |
| Product Offering | Virtual interior design app and services |
| Founded | 2011 |
| Founder | Madeline Fraser, Beatrice Fischel-Bock, and Elizabeth Grover |
| Required Investment | $100,000 For 20% stake in Zoom Interior |
| Closing Deal | $100,000 For 33% |
| Shark | Barbara Corcoran |
| Current Business Status | Out of business |
What is Zoom Interiors?
Zoom Interiors is an interior design company that offers virtual interior design services via an app. The company focus on enabling everyone to design their space without contracting an interior designer.
It does this through an app that features several questions posed to the homeowners. The answer they give presents a setup of design items and their arrangement. The company also offers design services and products they recommend to a homeowner. Their services are free, but they will sell you the items you need to accomplish the recommended design.
How Does Zoom Interiors Work?
Zoom Interiors combine technology and design. It is a disruptive idea in the designing world. The company works by providing an online platform to help people design their rooms. It has an interface that features a series of questions in an online survey format.
When you answer the questions, the platform algorithm presents an idea of the design elements and items fit for your room. The company offers to sell you the suggested items. If the proposed design is unsatisfying, you can book an appointment with the designers for more deliberations.
Who Founded Zoom Interiors?
Zoom Interiors is the brainchild of three interior designers; Elizabeth Grover, Madeline Fraser, and Beatrice Fischel-Bock. The trio is a former design student at George Washington University. They were pursuing the same course and had a passion for fashion and design. Each of the three ladies wanted to enhance creativity in furnishing impaired homes with cozy and modernized living spaces.
With an understanding of the difficulties found in this space, the trio aimed at causing a disruption. Their goal was to make design affordable and accessible. This objective was only possible through revolutionizing the entire interior design industry. The Zoom Interiors idea was born. The trio became the co-founders of this company.
Zoom Interiors Business before Shark Tank
Elizabeth, Madeline, and Beatrice were three fashion and design lovers. They met in an interior designing class, and their passion for this niche was aligned. This aspect enhanced their bond and led to the birth of Zoom Interiors.
The trio had a deep understanding of the difficulties people face when hiring an interior designer. Their research had indicated that one needed to pay $100 and above for interior design consultancy service. For them, interior designing services should be accessible and affordable.
This information inspired them to develop an interface where customers can access this service for free. They designed a free app where people with limited resources can access interior design. The platform had an online survey-like series of questions that informed the Zoom board of the desired customer’s plan.
Before pitching to the Sharks, the trio was going on with their passion and helped their fellows to have organized and cozy interior spaces. They had relocated to Philadelphia with a plan to establish their business.
However, as immediate graduates, they could not afford the financial muscles to sustain a new company. The desire to extend these benefits to a wider population and financial instability inspired them to try their luck on the Shark Tank.
Zoom Interiors during Shark Tank Pitch
The pitch begins with a background story of how Beatrice, Elizabeth, and Madeline met and decided to go into business together. They expressed that they are seeking an investment of $100,000 in exchange for 20% equity in Zoom Interiors.
The trio states that their idea was a revolutionary concept that would forever transform the interior design industry. Hence, it was worth the huge investment.
The girls move on to state their goals and the company’s mission. They then start to demonstrate a step-by-step process of how their concept works.
The sharks get a set of images showcasing the state of a room before and after redesigning. The capability of the three girls amused the sharks. This was not enough since the team displayed a variety of interior design styles with different price ranges. Each complete design project was an AHA moment for the Sharks panel.
Kevin O’Leary was curious to know how much the girls had made in sales. The trio stated that the company had been in operation for 14 months. During the time, it had managed to make $180K in sales.
However, their profit share was only $3k from commission changed to furniture sellers for items. Zoom Interiors changed 18% on every sale purchased by a client they recommended to a seller.
Kevin asked them why not go for paid consultancy to the customers and charge $199. He believed that this idea would weed out unserious customers and reward them for their efforts. But they stated that they are looking to shorten the process and also need Sharks’ help to raise the commission rate to 55%.
Sharks start competing to talk. Lori wants to know how they plan to grow their business. They state that the goal is to sell more goods after consultation with a customer. After listening to the pitch, the sharks start to make their decision.
Mark becomes the first to opt out. He is of the view that it will take the 6years to complete the design, and $100,000 was not enough. Robert requests them to employ someone to do free 15-minutes call. He is dissatisfied with the idea of investing money in redesigning. Also, the reliance of the girls on Sharks’ guidance does not impress him. He is out.
Kevin express his lack of faith in the company, and he too opts out. Greiner also decides to opts out. She expresses her sympathy to the girls. But she could not invest since she didn’t see any potential in the company, and its road to success would be a long one.
Barbara is now the remaining shark. She expresses her appreciation and commends the girls for their energy. She likes their pricing approach too. However, the application development does not amuse her. Despite this, she places an offer of $100,000 for a 33% stake in Zoom Interiors. Will the trio accept?
Zoom Interiors Closing Deal in Shark Tank
The Zoom Interiors founders think about the offer and decide to get on board. They close a deal of $100,000 for 33% equity with Barbara.
Zoom Interiors after Shark Tank
After the Shark debut, the deal between Zoom Interiors and Barbara flopped. She decided to leave the company as she was unwilling to be active, which did not go well with the trio. They left the automation aspect that sharks never loved.
The company also restructured its pricing model to charge a flat fee instead of a commission. Their young faces attracted clients, and their social media following experienced instant growth.
After a year, their episode went viral on Tinder. Their presentation drew the attention of Tinder co-founder Sean Rad, who reached out to the company’s CEO Beatrice Fischel-Bock via Facebook. This contact was a breakthrough for Zoom Interiors.
Rad helped the trio to raise $7.2 million through an online campaign. The company changed its name to Homee, an app that allowed users to develop their own living space. It gained popularity in the interior design space but diverted from the original objective. They revamped it and renamed it, Hutch.
Current Update: Is Zoom Interiors Still In Business?
After rebranding and changing names from Zoom Interiors to Homee to Hutch, the business finally closed its door. The company ceased to operate in 2020, and its founders focused on other aspects of their lives.
FAQs
How much does the product cost?
Zoom Interiors offered free interior design consultancy services and charged a 15% commission to sellers on sales made through their recommendation.
How do Zoom Interiors help you?
Zoom Interiors is an online platform that helps users get free interior design consultations and ideas on how to make their spaces cozy. Its later version, Homee, enabled people to create their own living spaces.
Why did Zoom Interior Shut down?
No communicated reasons why the company ceased its operations.
What is the net worth of Zoom Interiors?
The net worth of Zoom Interiors was estimated to be $500,000, considering that they were requesting $100,000 in exchange for a 20% stake in the company.
What percentage of Zoom Interiors did Barbara own?
Barbara had sealed a deal of $100,000 for a 33% stake in Zoom Interiors, but the contract flopped.
