Parents, Matt and Melissa Hammersley, came to
Shark Tank Novel Effect Update
- Entrepreneur: Matt and Melissa Hammersley
- Business: Narration app with sound effects for children’s books
- Ask: $500,000 for 10% equity
- Result: $500,000 for 15% equity
- Shark: Lori Greiner
Novel Effect is an app that currently has 75 titles available to read. They are in the stage of building their library and getting customer acquisition. So far there is no revenue.
Mark Cuban felt there was too much of a challenge to acquire customers and dropped out. Daymond John quickly followed as he was just not that interested in the product.
Kevin O’Leary had been in a similar business when their parents were using CDs instead of apps but described the difficulty in getting customers for this type of product. After bickering with Lori Greiner, he dropped out.
Lori saw the potential here and thought it was a great product so she gave an offer of $500,000 for 20%. Matt countered with $500,000 for 12.5%. Guest shark, Sara Blakely, asked if Lori would want to go in with her.
After thinking it over, Lori decided she would be giving away more equity than she wanted and stayed with her offer. Matt countered back at $500,000 for 13%, and Lori came back with $500,000 for 15%. After some thought, they all agreed and made a deal.
At the time of this Novel Effect update, the company is still in business and runs on a subscription basis. However, it seems that they later turned down Lori’s offer and instead raised $3 million in funding from Amazon and some other companies. They have three different plans: one for parents, one for educators, and one for schools. You can sign up for any of these on their website and download the app from the app store.
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