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Subject: "Aren't app startups valued much higher than this? [Shark Tank related]" Previous topic | Next topic
Starks dunked on Bulls
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Sun Feb-22-15 03:55 PM

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"Aren't app startups valued much higher than this? [Shark Tank related]"
Sun Feb-22-15 03:58 PM by Starks dunked on Bul

  

          

https://www.youtube.com/watch?v=OhRzdqmuMGg

Homey valued his company at $266,666? Aren't these kind of companies worth millions?

And why only 99 cent for the app? He should've made the buggy version with the ads only 99 cents. And offered the premium version for 5 bucks. A college student who's interested in saving thousands should have 5 bucks to spare.

  

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Topic Outline
Subject Author Message Date ID
valuation is whatever you can get ppl to agree you're worth.
Feb 22nd 2015
1
wrong spot.
Feb 22nd 2015
2
Thanks to Mark Cuban business owners no long have to give
Feb 23rd 2015
8
that was all ego.
Feb 22nd 2015
3
I just wonder how they'll keep
Feb 22nd 2015
4
      he mentioned that they already developed an algorithm
Feb 22nd 2015
5
           we're >< on the algorithems lol
Feb 22nd 2015
6
what you see on that show is staged
Feb 22nd 2015
7
yea its low, prolly why lori jumped
Feb 23rd 2015
9
The algorithm and technical details are probably the simplist part
Feb 23rd 2015
10
That was a horrible idea to answer in that way
Feb 23rd 2015
11
His company is a database? The same database that can be found
Feb 23rd 2015
12
lol. That's what I was thinking. This dude swindled them
Feb 23rd 2015
13
don't discount how important ui is for this generation
Feb 23rd 2015
14
      finding scholarships on your phone though? Shouldn't you sit at a comput...
Feb 23rd 2015
15

poetx
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Sun Feb-22-15 06:06 PM

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1. "valuation is whatever you can get ppl to agree you're worth. "
In response to Reply # 0


  

          

dude said they had 92k downloads (i'm assuming at 99 cents). lets round up to 100k.

apple and google taking 30 cents on each dollar. so that meant they had 100k revenues - 30k to apple and google = 70k.

so they are at about 3x gross annual revenue on valuation or 4x if they're counting what they got back after apple and google's cut.

i think their valuation is a little low and suspect that they were moreso going after sharktank for the national publicity. (but even getting on shark tank and not doing a deal means you got to give up 5% of your company).

40k for effectively 20% of your company seems pretty high, unless they parlay this appearance into a LOT of coverage. but its on yahoo, etc., so it may have ended up as a very effective ad buy.

>https://www.youtube.com/watch?v=OhRzdqmuMGg
>
>Homey valued his company at $266,666? Aren't these kind of
>companies worth millions?
>
>And why only 99 cent for the app? He should've made the buggy
>version with the ads only 99 cents. And offered the premium
>version for 5 bucks. A college student who's interested in
>saving thousands should have 5 bucks to spare.

the overall market (full time college students w/ smartphones) is around 18 million. better to go for maximum market share than get a smaller percentage of folks willing to pay more.

at 99 cents, at worst, it's a novelty. ppl will be pissed if they pay $5 and don't get a scholarship.

i don't know the demographics o how many students qualify for the type of scholarships they are marketing.




peace & blessings,

x.

www.twitter.com/poetx

=========================================
I'm an advocate for working smarter, not harder. If you just
focus on working hard you end up making someone else rich and
not having much to show for it. (c) mad

  

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dapitts08
Member since Apr 03rd 2008
8194 posts
Sun Feb-22-15 07:03 PM

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2. "wrong spot."
In response to Reply # 1
Sun Feb-22-15 07:03 PM by dapitts08

          

.

the key to happiness is not being rich;
it's doing something arduous and
creating something of value and then
being able to reflect on the fruits of your labor

  

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Fishgrease
Member since Feb 13th 2006
34433 posts
Mon Feb-23-15 08:23 AM

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8. "Thanks to Mark Cuban business owners no long have to give "
In response to Reply # 1


  

          

up a percentage of profit or equity in their company for appearing on the show.

http://www.inc.com/will-yakowicz/mark-cuban-forces-shark-tank-to-remove-equity-clause.html


---------------------------------------
blog: www.wonderfullyhorrible.blogspot.com
instagram: Fishgrease
twitter: wooly_caesar
Podcast www.soundcloud.com/circlegang

  

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dapitts08
Member since Apr 03rd 2008
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Sun Feb-22-15 07:04 PM

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3. "that was all ego."
In response to Reply # 0
Sun Feb-22-15 07:06 PM by dapitts08

          

mark and robert felt like they have more of the technical know how to run a business like this ... which is true ... and in their mind that should have been dude's number one priority

but instead he went with folks who BELIEVED in his purpose and vision first and that they are confident that they can build the product they need around it

it's not the first time daymond or lori has invested in someone based on believing in them or their story....hell robert and mark have to....this is just the first time that other sharks felt like they lost out by not getting the deal themselves and acted like little babies

edit: and it's not look dude doesn't know the scholarship space...he got $1.3 million in scholarships himself...so yeah...whatever technical issues maybe encountered i am pretty sure they can work that out

the key to happiness is not being rich;
it's doing something arduous and
creating something of value and then
being able to reflect on the fruits of your labor

  

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tariqhu
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Sun Feb-22-15 09:53 PM

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4. "I just wonder how they'll keep"
In response to Reply # 3


          

that db updated. seems like a heavily manual process.

Y'all buy those labels, I was born supreme

  

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dapitts08
Member since Apr 03rd 2008
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Sun Feb-22-15 10:19 PM

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5. "he mentioned that they already developed an algorithm"
In response to Reply # 4


          

i am sure one of the first courses of action will be to tweak and refine it

and create some kind of incentive program for students to self submit their finds to the database and run through an algorithm

as well as branding themselves as the go to place for scholarship givers to list their scholly to run through the algorithm

note: i keep saying run through an algorithm lol but i don't know the technicalities of how that works at al... all i know is that it is a way to use math and variables to data mine...lol

the key to happiness is not being rich;
it's doing something arduous and
creating something of value and then
being able to reflect on the fruits of your labor

  

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tariqhu
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Sun Feb-22-15 10:49 PM

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6. "we're >< on the algorithems lol"
In response to Reply # 5


          

Y'all buy those labels, I was born supreme

  

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AZ
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Sun Feb-22-15 11:56 PM

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7. "what you see on that show is staged"
In response to Reply # 0


          

Don't focus too much on the details

  

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Riot
Member since May 25th 2005
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Mon Feb-23-15 01:58 PM

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9. "yea its low, prolly why lori jumped"
In response to Reply # 0


  

          

if dude hit 92k in a yr (or two)
new class of freshman coming in school every year = easy million

the algorithm is not gonna change the earning potential of the biz
and if hes got 40k scholarships in the database already, there is likely only a few updates that need to be made year after year


the 'charity tank' comment turns it into racial dog whistle

meanwhile as dapitts said, they cut ppl off and jump on pitches early all the time. and get mad if the inventor wants to hear other offers


btw i had this same idea like 3 yrs ago
and for an associated college planner to walk thru application deadlines, aid forms, admission requirements, etc

since mad kids dont know or get lost in the process


but im a lazy ass and rather post on okp instead.
*nae nae dance*



)))--####---###--(((

bunda
<-.-> ^_^ \^0^/
get busy living, or get busy dying.

  

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PimpTrickGangstaClik
Member since Oct 06th 2005
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Mon Feb-23-15 02:10 PM

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10. "The algorithm and technical details are probably the simplist part"
In response to Reply # 0


  

          

It's not to difficult to web crawl and data mine to create an aggregated database of schollys.
Just outsource it to some Ukrainian computer guy to do it real cheap

If I heard that idea and its early success, I'd jump too with getting into the nitty gritty

_______________________________________
You ain't the only one whose got problems. You ain't the only one who knows pain. Get up off your ass and just solve them. You still got a chance to try to change, try the shit again.
Devin tha Dude

  

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Heinz
Member since Dec 26th 2003
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Mon Feb-23-15 02:52 PM

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11. "That was a horrible idea to answer in that way"
In response to Reply # 0
Mon Feb-23-15 03:14 PM by Heinz

  

          

and start a business partnership with that whole answer now as if they were gonna walk away knowing its potential and that those 2 other guys wanted it. Never. He was in control and didnt even know it. I wouldve wait to see what Mark and the other dude had to say and offer

Also i would've went to Silicon Valley with the idea and found someone better to work with lol With an idea like that and the potential I wouldve explored my options the guys at Shark Tank are great businessmen and all but just for the tech world not necessarily my first choice

Damon and Lori were pretending like they didn't know what they did lol they bullied the kid on tv. It was great business move on their end and they had to stick to their guns that it was all about doing good for the world, but that was literally like 1/4 of it. It was mostly about getting involved on the cheap 20k each for 15% before he realized he could get more.

____

TWITTER : Heinz21st

IG : H_N_Z

  

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Buddy_Gilapagos
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Mon Feb-23-15 03:06 PM

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12. "His company is a database? The same database that can be found"
In response to Reply # 0


  

          

on this government site for free?
http://careerinfonet.org/scholarshipsearch/ScholarshipCategory.asp?searchtype=category&nodeid=22


**********
"Everyone has a plan until you punch them in the face. Then they don't have a plan anymore." (c) Mike Tyson

"One of the most important things in life is what Judge Learned Hand described as 'that ever-gnawing inner doubt as to whether you're r

  

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PimpTrickGangstaClik
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Mon Feb-23-15 03:21 PM

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13. "lol. That's what I was thinking. This dude swindled them"
In response to Reply # 12


  

          

There's a bunch of websites that do this already. And it doesn't seen like the type of work that is really made for a mobile app.

But I don't know. Maybe his data is more comprehensive.
He was talking about like 50,000 scholarships are available. This thing only has 6000

_______________________________________
You ain't the only one whose got problems. You ain't the only one who knows pain. Get up off your ass and just solve them. You still got a chance to try to change, try the shit again.
Devin tha Dude

  

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dapitts08
Member since Apr 03rd 2008
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Mon Feb-23-15 03:30 PM

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14. "don't discount how important ui is for this generation"
In response to Reply # 12
Mon Feb-23-15 03:31 PM by dapitts08

          

that site you linked up is an easy turn off for a student
it is extremely formal and does not look user friendly
it looks like a typical old school government site

my guess is scholly is built with a specific user experience in mind
the ease of using a touch screen
the likely use of buttons for navigation
most likely a more simpler and easier to navigate layout than what you linked up
all of that goes a long way

the key to happiness is not being rich;
it's doing something arduous and
creating something of value and then
being able to reflect on the fruits of your labor

  

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Buddy_Gilapagos
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Mon Feb-23-15 04:09 PM

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15. "finding scholarships on your phone though? Shouldn't you sit at a comput..."
In response to Reply # 14


  

          

for that?

**********
"Everyone has a plan until you punch them in the face. Then they don't have a plan anymore." (c) Mike Tyson

"One of the most important things in life is what Judge Learned Hand described as 'that ever-gnawing inner doubt as to whether you're r

  

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