Hater is an online dating service from Brooklyn, NY, that helps potential couples meet and bond over the things that they don't like.
Hater is "the only company in the world that can make love from the power of hate" according to the entrepreneur. The idea is based on supposed studies that people who connect over things they dislike form stronger bonds than people who connect over things they prefer. However, the idea was conceptualized as a comedy sketch two years before.
When using the app, customers can see what the another person loves, likes, is neutral towards, dislikes, or hates.
The entrepreneur claims to have 500,000 active users, mostly in New York City and Olso, 8,000-10,000 users are active daily. New York City, specifically, was mentioned to have "tens of thousands" of users with "several thousand" active daily.
The company is currently pre-money and has no sales. However, there are eventual plans to monetize the app by adding in products (advertising) based on customer data. The entrepreneur also currently does not pay himself a salary.
In terms of previous fundraising, Hater has raised $500,000 from the founders of King (the Candy Crush game maker) for 12.5% of the company, valued at $4,000,000.
If the entrepreneur gets an investment, his first hire is planned to be a public relations representative to help get the story out.
This deal aired on Episode 9.12.
Making A Deal
Mark agreed to the deal for 10% total equity in Hater. However, because the distribution of equity was structured as 7.5% in common shares and 2.5% in advisory shares, the actual bite was only $1,333,333. This is because of the way the Stats Shark values advisory shares. Advisory shares are discounted from the usual equity because they are specifically set aside to bring people into the company by giving them away.