Life Belt is a system installed in cars to prevent them from starting if the seat belts are not buckled. If this system is installed in cars, it stops the drivers from starting and driving the vehicle without wearing the seat belt.
How it actually works is – the system actually disables the engine until the driver, as well as passengers, have worn seat belts. This product can also help parents who drive with their kids inside the car.
There is an alarm that goes off if anyone tries to remove the seatbelt while the car is moving. The life belt was invented in 2009 by Robert Allison and was launched in the year 2010.
Life Belt at a glance:
- An installed system in cars to prevent them from starting until seat belts are not buckled.
- Founder: Robert Allison
- Asked For $500,000 for 10% at a $5 million valuation on Shark Tank.
- Received no deal.
Index:
Who is the Founder of Life Belt?
Robert Allison invented Life Belt in the year 2009. His friend lost his sister in a car crash that’s when he decided to invent this safety device that will stop people from driving unsafely or without any proper precautions.
After inventing Life Belt in 2009, his parents and employees were his prospective buyers but he wanted to develop and promote the product more. He wanted school buses should also install this system to maximize students’ safety.
Initially, Robert sold this product in a local shop. But he wanted to install this system in as many cars as possible. That’s why he pitched the product in Shark Tank.
Did Life Belt get a deal on Shark Tank?
Robert Allison pitched Life Belt on Shark Tank in the second episode of season 1. He was seeking $500,000 for a 10% stake. While pitching the product he said that in the majority of road accidents teens are responsible because they do not wear seatbelts.
With this system installed in cars, road accidents will reduce by 86% in the country. The belt will ensure that drivers and passengers are wearing seat belts.
The sharks were interested in this deal. But Kevin O’Leary offered $500,000 for a 100% patent. Allison denied the offer. Then Robert Herjavek increased the amount to $1 million for a 100% patent, but Allison was not happy with it and turned down the offer.
When asked the reason he said he does not want the product to sit on the shelf, he actually wants people to invest in this product and ensure their family’s safety. Other Sharks- Barbara Corocan and Daymond John liked the product but they said that somehow they do not see him actually selling the product.
They were not confident if the product will actually be able to generate sales. That is why Robert Allison had to leave Shark Tank without any deal.
What Happened to Life Belt after Shark Tank?
As mentioned earlier as well, Robert Allison wanted this system to be installed in as many cars as possible. He wanted people to understand the importance of this product.
Robert Allison had sold Life Belt in local shops. He installed the system for $229. But Life Belt is available on sale online as well and is very easy to install. After appearing on Shark Tank, he received orders from a lot of national retailers. He received orders from retailers like Autozone and Hendrick Automotive.
Life Belt was available for sale on the Safety Mom Direct website for a short period of time.
How much is Life Belt worth?
Allison came to Shark Tank asking deal of $500,000 for 10% equity and the value was $5,000,000. Allison later made a deal with Gillman Automotive Dealership. He sold Life Belt for $1.7 million. Gillman wanted to install lifebelts in new as well as old cars. Allison also received orders from a lot of retailers, as mentioned earlier.
Revenue of the Life Belt:
According to Daymond John Blogs, after signing the deal with Gillman Automotives and receiving orders from national retailers Robert Allison had expected to make $30 million by the end of the year 2010.
Unfortunately, there is no further information available about the deal from Allison as well as Gillman Automotives. The Life Belt website was last updated in 2020 but the product was not available for sale. Life Belt doesn’t seem to be available for sale on Gillman Automotive’s website.
Life Belt isn’t available on other dealership websites either.
Investors and Funding of Life Belt:
Robert Allison signed a multi-million deal with Gillman Automotives. Gillman wanted to install this system in all cars just like Allison.
This deal turned out to be very good for Allison as the value of the deal was $1.7 million and the estimated earnings by the end of the year were more than $10 million at least. But there has been no update on it since.
Who are the Competitors of Life Belt?
According to 1971 NHTSA regulations in the USA, it is mandatory for new cars to have passive restraint systems. That is why many manufacturers have built and have already installed the safety interlock system in their cars. But later, customers demanded its removal.
Smart Start:
Smart Start is a technology that stops drunk drivers from driving. It is an ignition interlock device installed, monitored, manufactured, and serviced by a Texas Company called Smart Start Inc. it was started in the year 1993. Smart Start’s estimated revenue was more than $150 million in the year 2018.
Is Life Belt still in business?
After the multi-million dollar deal with Gillman Automotives, there is no further information available on Life Belt. But the Gillman Automotives deal turned out to be profitable for Robert Allison as it was valued at $1.7 million.
Life Belt is not available for sale anywhere currently. Even though Life Belts website was updated in 2020, there is no option available on their website as well as on Gillman Automotives website to actually buy the product.
Interesting Facts about Life Belt:
- Robert Allison decided to invent a product that will ensure the safety of drivers and passengers after his friend lost a loved one in a car crash.
- Robert Allison was offered double the amount he was asking for in Shark Tank but he denied the offer.
- Before coming to Shark Tank Allison had a local shop where he installed Life Belt in cars.
- Allison held the patent for the product. Which put him in a very strong position in a bargain.
- The sharks’ deal of $1 million for patent drove David S. Rose of Rose Tech Ventures crazy. He said, “They are all certifiably insane.”
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What is Life Belt?
Life Belt is a system installed in cars to prevent them from starting if the seat belts are not buckled. If this system is installed in cars, it stops the drivers from starting and driving the vehicle without wearing the seat belt.
Who founded Life Belt?
Robert Allison invented Life Belt in the year 2009. His friend lost his sister in a car crash that’s when he decided to invent this safety device that will stop people from driving unsafely or without any proper precautions.
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