What Happened To VPCabs Virtual Pinball Machine From Shark Tank Season 7?
VPCabs, virtual pinball machines, make it easier for venues to swap out pinball games, providing more choices for players and arcade owners. They are the brainchild of Brad Baker, a pinball enthusiast from Cincinnati, Ohio, who invented them as a way to make a little extra money for his family. Using an LED display, Baker presented his inventive idea during Shark Tank Season 7.
While initially, most of the sharks on the show were hesitant about the concept, expressing concerns over profitability, the savvy inventor ultimately landed a deal that would later lead to not one but two successful businesses for the father-turned-inventor. Baker's appearance on Shark Tank was the start of a thriving pinball company and served as a jumping-off point for one of the more successful businesses featured on the show.
What happened to VPCabs on Shark Tank?
Brad Baker, the founder and creator of VPCabs appeared on Shark Tank in 2016, presenting his idea of virtual pinball machines. The sharks played on the machines, Mark Cuban in particular enjoying himself. Initially, Baker was asking for $250,000 for 10% equity in his company, bringing the valuation for VPCabs to $2.5 million. Baker explained that in just a year and a half, the company sold around 200 units for $750,000 in revenue and sold each machine for $3,000 to $9,500. Later, however, Baker would explain his net profit in 2014 was only $12,000.
The sharks were initially unconvinced of the idea. Specifically, Robert Herjavec and Lori Greiner believed that young people — VPCab's target audience — would not be interested in pinball with all the high-quality video game options available on the market. Concerns over a lack of proprietary software forced out Mark Cuban, as he feared a lack of competitive advantage, and up to 15% software licensing fees made the margins for the company run too slim.
However, entrepreneur Daymond John came to the rescue, seeing an opportunity to integrate with his existing tech firm, and offered $250,000 for 30% of the company. Baker countered at 20%, and eventually, the two would settle on the initial asking price of $250,000 with a compromise for 25% equity in VPCabs.
VPCab's Shark Tank appearance proved highly successful
VPCabs was able to land two huge contracts in addition to the investment and support from Daymond John. The first was an agreement with the tool company Snap-on to develop pinball cabinets as promotional items for the popular tool company. This work order alone required VPCabs to hire 15 additional staff.
Later, the company landed a contract with the TV show Impractical Jokers, which featured it on an episode where a monster truck ran over one of the machines. This appearance bolstered the pinball cabinets' profile, adding to its fame after Shark Tanks.
Ultimately, this would prove to be one of Daymond John's most lucrative investments on Shark Tank to date, as the company was able to earn more than $1 million in sales shortly after the appearance on the show. The company now sells anywhere from 300 to 500 cabinets each year.
VPCabs opened an arcade and bar
In 2020, Brad Baker took his venture a step beyond by opening an arcade and bar called Pinball Garage in the town of Hamilton, Ohio. This gaming center features 32 retro and new pinball machines as well as 10 arcade games. With a full bar and arcade, the location became a key social spot in Butler County, helping develop the town's commercial district along with other local businesses.
Eventually, Pinball Garage would expand its location in July 2022, almost doubling its size and adding 30 new games. In addition to the new games, Pinball Garage went on to expand by adding a full dining area so families could sit down for a bite to eat between tossing quarters into the machines. In addition to being a hot spot in town, the Pinball Garage location also became the site for various fundraising and philanthropic efforts.
The future looks bright for Brad Baker and VPCabs
Today, people can still pick up custom pinball and arcade machines from VPCabs official website. In addition to the Ultra VP 4K 120hz Virtual Pinball Machine, VPCabs has also introduced its Vertigo NXT 4K Hybrid VPin Multicade, which offers an upright cabinet and various arcade games available for play. The Ultra VPK Virtual Pinball Machine costs $8,495, while the Vertigo NXT Multicade runs a $5,695 price tag.
However, Baker wasn't done yet. In 2021, he was awarded the 2021 Citizen of the Year Award by the Greater Hamilton Chamber of Commerce for his contributions to the local economy via Pinball Garage and VPCabs, as well as numerous philanthropic efforts that helped to improve the town.
One of Baker's efforts, called The King's Plate, helps feed food-insecure citizens within Hamilton by providing free meals at the Pinball Garage. According to an interview in a local newspaper called the Journal-News, Baker says, "We're going to feed people, regardless of if people kick in or not, but it will allow us to do more, and feed more people." He'd go on to state," As people come in and can't afford a meal, they just go to the register and ask for the King's Plate and they can order anything on the menu."