Husband and wife duo, Sara and Josh Margulis, had their honeymoon paid for by their wedding guests through crowdfunding. That experience inspired them to create a platform where other engaged couples could register for the trip of a lifetime instead of plates and silverware. Will the sharks offer them a deal on
Shark Tank Honeyfund Update
- Entrepreneurs: Sara Margulis and Josh Margulis
- Business: Crowdfunding for honeymoons
- Ask: $400,000 for 10% equity
- Result: $400,000 for 0% equity + 33% of all revenue until 3X is paid back
- Sharks: Kevin O’Leary
Honeyfund is a crowdfunding company that focuses on using people’s generosity to help fund honeymoons for newlyweds. Sara and Josh had found a successful market of engaged couples, preferring to have their honeymoon paid for, rather than receiving typical houseware gifts at a wedding shower. Along with funding the honeymoon, gift givers could also pay for “experiences” such as spa treatments.
More than $200 million in crowdfunding gifts had already been raised on the Honeyfund platform. Since the company had a unique partnership with Paypal as a royalty on transaction fees, the company had generated about $1 million in gross revenues in the most recent calendar year before appearing on
Kevin O’Leary was interested in learning about customer acquisition costs. Sara told him that it costs about $0.88 cents to acquire a single customer, with the value being about $9.00. Lori Greiner said she believed there was too much competition in the industry of crowdfunding. She was the first shark to drop out.
Mark Cuban believed that the company wouldn’t be a profitable investment, so he decided to pass on making an offer. Robert Herjavec said he could help the couple and made the first offer of $500,000 but he wanted 50% equity in the company. Keeping things interesting, Kevin offered $400,000 but did not want any equity. He did however want 1/3 of their profits until he was paid back $1.2 million.
The negotiations became even wilder as Barbara Corcoran entered the bidding war. She made a competitive offer of $400,000 for 30% equity. Robert immediately countered the couple, matching Barbara’s offer. Josh countered Robert at 25% equity and Robert declined. Sara and Josh ultimately decided to accept Kevin’s offer.
How did things turn out for Sara and Josh after striking a deal with Kevin? Keep reading our Honeyfund update to find out!
Great news for this entrepreneurial couple! Research for our Honeyfund update revealed that Kevin has been an excellent partner. The company has continued to grow and dominate the wedding crowdfunding industry, making it easier than ever for customers to raise money for their honeymoons. Find out more about his company on the Honeyfund website.
If you’d like to find out more about the other companies featured on Season 6 Episode 6, follow the links below for this episode’s other company updates.
For even more on companies and products, check out our Season 6 Products Page!