Have you ever wondered what Pavlok’s net worth is? Pavlok is an American tech company producing smart wristwatches that shock users into breaking bad habits.
Users wear the watch to condition themselves out of damaging habits like smoking and unhealthy eating.
Pavlok’s exposure skyrocketed after it appeared on Shark Tank. The notorious episode amassed mixed reviews.
Nevertheless, the company still stands along with its founder Maneesh Seitha.
As of May 2023, Pavlok’s net worth is $2 million. Read on to learn more about the company’s journey of winnings and media attention.
Table of Contents
Early Stages
Maneesh Sethi founded the tech wristwatch company Pavlok in 2014. Sethi created the watch a year prior.
The company’s name originates from the classic conditioning psychologist Ivan Pavlov.
In turn, aversion therapy is the main idea of the watch since it helps users break bad habits. Subsequently, it shocks the wearer when they’re contemplating a harmful practice.
The habits can stretch from eating unhealthy food and smoking to nail-biting. Sethi got inspired by the idea after allegedly hiring someone to slap him to complete his tasks.
He’s afflicted with ADD and found it challenging to stop scrolling through social media. When he invented the watch in 2013, he accustomed it to varying levels of shock.
The aversion therapy device connects to an app where users decide which bad habits to break. Plus, the app allows other users to shock the watch wearer.
The Founder
Maneesh Sethi was born in Miami, Florida. His passions involve programming and business ventures. These passions extended to writing a book called “Game Programming for Teens.”
The Pavlok founder enrolled in the prestigious Stanford University. Sethi attended a computer science, technology, and society-centered program.
He first embarked on a career path as an editor-in-chief of a tech company called Hack the System. The now businessman was also a web designer.
The Product
Pavlok capitalizes on the classical conditioning nature of humans. It attempts to force users to stop bad habits.
The shock meter ranges between pleasant to mildly uncomfortable. With each purchase, buyers get an e-book discussing breaking bad habits and other behavior modification models to follow.
After the company’s expansion, it introduced more specialized products.
Shock Clock
The Shock Clock has over three generations in its line now. The watch acts as an alarm clock. Rather than wake you up with loud ringing sounds, it plays gentle chimes and vibrations.
If those haven’t woken you up, you can customize the watch so it can mildly shock you. One of the unique selling points of the Pavlok shock clock is that it has features to keep you up.
For instance, you can program it to let you do a certain number of jumping jacks or go and scan a QR code in a different room.
Alternatively, you can solve a mathematical equation. Over time, the product promises to change you into a morning person.
Pavlok 2
The 2nd generation Pavlok device uses Sensory Neural Automatic Process (SNAP) technology to break bad habits like smoking and nail-biting.
The company boasts over 100,000 units sold of the Pavlok 2. Besides that, the watch features real-time haptic feedback, activity and sleep tracking, hand detection, and low-energy Bluetooth.
It uses shock and vibrations to averse you from bad habits. You can connect the watch to various applications, like Google Fit and Todoist.
Pavlok 3
The third-generation Pavlok differs from its second-generation with extra add-ons.
The Pavlok 3 offers water resistance, where you can submerge the aversion therapy device three feet underwater.
You can add the product to an existing analog or smartwatch. Additionally, it has three programmable physical buttons.
Plus, you can choose between two models of wristbands. The sports model is made of silicon, while the deluxe has a metallic mesh finish.
Pavlok Net Worth 2023
As of May 2023, Pavlok’s net worth is $2 million. The founder accumulated $283,827 from the IndieGoGo campaign to kickstart the company in 2014.
From then on, the wristwatch organization achieved greater heights.
Shark Tank Appearance
Maneesh Sethi appeared on Shark Tank to pitch Pavlok. He was seeking a $500k investment for 3.14% equity. The tech CEO said his company is worth $16 million.
Nonetheless, after Maneesh’s presentation, the sharks weren’t impressed.
Following his initial explanation, the wealthy investors laughed. Despite presenting studies, the CEO neglected to prepare direct reports on the product’s efficacy.
Mark Cuban, in particular, accused Sethi of being a con artist. Nevertheless, Kevin was biting and asked the Pavlok founder about his sales and valuation.
Maneesh disclosed the company’s $800,000 in sales. One-third of these numbers are pre-orders, whereas the rest are prototypes.
Consequently, the lack of direct studies and market testing or research discouraged the sharks from the product altogether.
After multiple back-and-forth arguments with the sharks, Sethi managed to get Kevin’s attention. The shark offered him the requested deal as a loan.
The amount will then be repaid over two years with a 7% interest. Even though Maneesh found the offer suitable for his company, he didn’t take it.
The entrepreneur reasoned that he didn’t want to focus on the money, to which Kevin rebutted and kicked him out of the show.
What Happened After Shark Tank?
Following the famed split from Shark Tank, Maneesh went on to market his shock wristband. He didn’t express much regret when leaving the show, despite only gathering 10,000 units of sale.
Sethi wrote a blog post titled “Why I Turned Down a $500,000 Deal on Shark Tank.” The media attention accumulated haters and backers to Pavlok.
He explains that he didn’t want Kevin as a partner because he views him as profit-driven. Meanwhile, Sethi is searching for an investor more focused on helping customers.
Media Attention
Fortunately for Maneesh, the media giant New York Times released an article regarding his product. Nonetheless, the issue of clinical trials and scientific backing remains.
Pavlok also gathered hate from over 39 fake one-star Amazon reviews. Luckily, the Shark Tank episode gave the company more exposure.
In turn, it was able to secure its investors and collect its funding rounds.
Funding and Finances
After its appearance on Shark Tank, the company garnered $200,000 in over three funding rounds.
Sethi gathered around six investors. One of which was his brother, Ramit Sethi. The Pavlok CEO’s brother holds several titles as an entrepreneur, financial advisor, and author.
Aside from his brother, his lead investor was Incwell. Other investors included MassChallenge, Bolt, and Scott N. Miller.
Once Pavlok gathered enough funding, it launched its Shock Clock product. The American tech company also made an extension called Zapier to boost their customer’s productivity.
Besides that, in 2021, the company sold over 100,000 units. Its monthly expenses dropped to over $100,000.
By 2022, Pavlok gained over $371,000 in annual revenue. The organization forecasts a $400,000 profit in 2023.
Frequently Asked Questions (FAQs
Does Pavlok shock hurt?
The device works similarly to snapping a rubber band on your wrist. The pain is minimal but effective enough to condition you.
It doesn’t cause any painful welts or scars on the skin. Users can activate the device discreetly as well.
Does the Pavlok shock clock work?
The shock clock is exceptionally effective in waking users up. After the vibrations, it resorts to a shock that alerts you and keeps you awake.
Key Takeaways
Don’t Overvalue
Over-inflating a company’s estimated net worth will likely draw leading investors away.
Accordingly, during the Shark Tank episode, Robert Herjavec noted that Pavlok’s valuation was too much.
Maneesh was overenthusiastic about Pavlok, but that reflected poorly on the sharks. Subsequently, setting a realistic amount will likely collect more funds.
Stay True to Your Passions
Maneesh Sethi persevered despite the mass of negative reviews and comments gathered across social media platforms.
He stayed true to his passion for helping people break bad habits. Sethi didn’t see Kevin as a fit partner due to his money-minded model, which is an understandable reason.
In turn, you also need to find like-minded partners in your business venture to avoid future conflicts.
Be Prepared
Being prepared not only means calculating the company’s net worth and presenting an idea.
Maneesh Sethi needed to back his claims with clinical trials and hard evidence that Pavlok is effective.
As a company advertising a psychological solution, research is essential. Otherwise, investors will likely shun the idea and deem it unprofitable.