Bravo is a company from Phoenix, AZ, that has created a cashless transaction system designed with valets, bartenders, and musicians in mind. It allows people who use the service to provide tips for things they like without also having to be friends or share additional personal information with the money they send.
Other users to whom payments can be made can be found via proximity or via name. The use case being that a musician can have their Bravo name on a sign up on stage that people in the audience can send a tip to. Users can pick an amount and optionally leave a rating or a comment. It adds a 2% transaction fee to the user and does not charge the receiver anything.
The company has processed $1,000,000 in transaction in the lifetime of the app. The company has made $15,000 in one quarter through merchant sales. The company is not currently profitable.
The entrepreneurs, both originally from Puerto Rico, believe that there are two routes to profit, the first is through the transaction fee applied to every payment. The second is through a machine learning function included in the software that can be sold as a separate product to merchants regarding spending patterns and predictive usage.
This deal aired on Episode 9.09.
Making A Deal
Lori and Mark teamed up on the deal with Bravo. This was an equity deal but structured a little bit differently than normal deals of the same type in that it utilizes advisory shares. Advisory shares are discounted from the value of the company according to the Stats Shark. Therefore, the amount invested $150,000 was for 10% equity instead of the full 14%. The additional 4% equity came from the advisory share pool.
Therefore, instead of Lori and Mark taking an almost $2,000,000 Shark Tank Bite off the value, they merely took a cool $1,500,000.