Asked about the deal seconds later, he divulges that their investment had been for 12
In response, Brendan states that they had launched on Valentines Day and has since gained 500,000 users. Curious about the numbers, Lori subsequently asks about how the app makes money. Giving her his full attention, the creator states that while they’re still in the early stages, they are testing out a few options-one of which includes the possibility of targeted ads. With further prompting, however, he reveals that they have not yet had any sales.
Just as she says that though, Barbara lets him know that she will soon be withdrawing her offer
Asked about his background, Brendan tells them that he had worked at Wall Street-a job that he hated-for six years after graduating from college. Having worked up the courage to quit, he explains, he eventually pursued a career as a comedy writer. Elaborating, he states that Hater was originally a comedy sketch idea that he had had; the more he thought about it, however, the more he thought that it had potential as an actual app.
Despite having put together the project, however, he reveals that he has not paid himself a salary, but has instead liquidated his 401(k), and has cashed in his savings. Subsequently asked about his funding, Brendan states that he’s managed to raise $500,000 with the help from King, the mobile gaming company, a fact which impresses a few of the sharks. 5% equity.
Continuing about how he’d found the investor, Brendan explains that he knew that “the only way to get market saturation was to make a big splash right away.” With that in mind, he and his PR staff eventually put together a pitch, which was then sent to as many reporters as possible. Before they knew it, he says, they had countless people who were interested in the app.
Changing the topic, Mark asks about the app’s daily active users, to which Brendan replies that there are 8,000 to 10,000menting on the low number, the shark confirms that that is the reason why he’s on the show. Stating that density in the marketplace is important, Rohan goes on to ask him about the engagement rate in New York, where the app is the most popular. In response, he states that they have tens of thousands of users in the city, a few thousand of which are active every day.
Commenting on his lack of numbers, Rohan begins to talk about the density of people that is required for such an app to succeed. Unable to do much with the app at its current state, he eventually tells Brendan that he is out. With that, the creator gives the rest of the sharks his attention. Almost immediately afterward, Barbara compliments the app’s name which she describes as being “pure genius.” Stating that there is potential, she goes on to make him his first offer-$250,000 for 5% stake.
To his dismay, however, she presses him for an answer before he is able to hear from the rest of the sharks. Noticeably conflicted, Brendan looks on as the others tell him to take her offer. Moments later, Lori jumps in with the comment that she can see Hater as a big brand. From there, she also gives him an offer-$200,000 for 10% stake.
Seconds later, while Brendan is still contemplating, she does just that. As he looks on nervously, Lori reminds him that she would be working with him one-on-one, should he takes her offermenting that he needs a much larger user base to be successful, Mark tells the him that he’d be able to help him out with celebrity connections, which can be used to boost the app’s popularity. From there, he offers him $200,000 for 7.5% equity as well as 2.5% in advisory shares-which Lori states are similar to her offer.