Validated App Update | Shark Tank Season 8

Parking and transportation costs often keep people from shopping in-store, making it tough for retailers to hold onto loyal customers. That’s where Ian Lyman, Tov Arneson, and Alex Wilhelm come in with Validated—an app that turns in-store purchases into credits for rides and parking. This allows shoppers to save on transit costs and provides stores with a tool to encourage repeat visits. Let’s see if they managed to secure a deal with any of the sharks in our Validated update and pitch recap.

If you’re short on time, here’s a quick overview of what happened to Validated after Shark Tank.

Ian, Tov, and Alex entered Shark Tank Season 8, seeking $250,000 for 8% equity in their transportation and retail loyalty business. Unfortunately, after their pitch, they did not secure a deal with any of the sharks.

In terms of a Validated update, the company expanded into major U.S. cities and integrated with top transportation services like Uber and Lyft. However, after being acquired by Reach Now, the company ceased operations within a month.

Shark	Result
Barbara Corcoran	No offer
Kevin O’Leary	No offer
Chris Sacca	No offer
Mark Cuban	No offer
Lori Greiner	No offer

Shark Tank Validated Pitch

• Entrepreneurs: Ian Lyman, Tov Arneson, and Alex Wilhelm
• Business: App that lets users earn ride credits by spending in stores
• Ask: $250,000 for 8% equity
• Result: No deal
• Sharks: None

Ian, Tov, and Alex are on a quest to transform the way people move around cities through rewards earned just by shopping.

They sought a $250,000 investment for their app, Validated. The funds would be used to expand their business partnerships.

They also planned to improve the app’s functionality to help users earn transportation credits more easily.

Validated is a mobile app that rewards customers with transportation credits. It connects local businesses and customers through a simple system.

When users spend money at participating stores and restaurants, they earn credits to use for rides or other transportation.

Validated operates as a partnership-based loyalty platform focused on these rewards.

The app is easy to use. Users download it, shop at partner locations, and scan a QR code to track spending.

When they reach specific spending targets, they earn credits for transportation services like ridesharing.

Validated primarily serves city shoppers and diners who want to save on transportation.

Local businesses gain foot traffic and repeat visits. Customers can easily save on travel costs, making city life more affordable.

Lori Greiner expresses interest, as she appreciates how the concept brings people into brick-and-mortar businesses.

Barbara Corcoran, however, wants clarification on how much a customer needs to spend to earn free parking. The entrepreneurs explain that the merchant sets that amount.

Chris Sacca then shifts the focus to sales, asking about the company’s current reach.

At this point, they reveal they’re operating in two cities—Seattle and Portland—with a network of 50 merchants, each averaging around 25 validations.

Mark Cuban, in contrast, is curious about the technical aspects.

He asks how the system operates, learning that merchants simply scan a QR code to validate purchases.

However, as the sharks continue discussing, concerns emerge.

Chris finds the process too complicated, and Mark soon agrees, becoming the first shark to go out.

Barbara also decides it’s not the right fit, stating she doesn’t see a significant need for the product.

Kevin O’Leary interjects, bluntly predicting the business will “go to zero” quickly, then bows out, calling it a “dog.” 

Lori, too, can’t envision wide adoption and exits.

Finally, Chris reiterates his concern about the complexity, and as the last shark, he decides to go out as well.

Let’s get a Validated update to see where the company is today.

Shark Tank Validated Update

Our Validated update found that the company expanded its operations beyond Seattle and Portland.

It launched in major U.S. cities, including New York, San Francisco, Las Vegas, Boston, and Chicago.

The app also integrates additional services like Uber, Lyft, and Biketown, enhancing the user experience.

In May 2019, Validated was acquired by Reach Now, a joint mobility venture between BMW and Daimler.

This acquisition aimed to integrate Validated’s rewards system into Reach Now’s transportation services.

Our research on the Validated update found that by June 2019, just a month after the acquisition, the company had ceased operations. Further, the app was removed from the Apple and Google Play stores.

Following the closure of Validated, the founders have pursued other ventures.

However, the specifics about their subsequent endeavors are not available.

Unfortunately, this will be our final Validated update.

Interested in other company updates from Season 8 Episode 21? We’ve got them!

• Guard Llama Update
• Flag Photo Printing App Update
• Guardian Bikes Update

Before you go, be sure to check out our list of all the Shark Tank Season 8 products.