Jump Forward is an online service from Chicago, IL, that wants to change how sports recruiting is done. Jump Forward has done this by creating a new type of social network where athletes can log in and document their performance.
The initial focus of Jump Forward is for college sports recruiting and Jump Forward charges schools subscription fees to be able to search and monitor a student athlete's performance. Additionally, higher ranked schools would pay more than lower ranked schools. As of the airing of this deal, Jump Forward had thirty subscribing school.
The killer feature Jump Forward offers for schools is that it proactively prevents recruiting violations. Oh, and of course, the mobile app has a patent. (On what, we'll probably never know since anyone can seemingly patent anything.)
Jump Forward has earned just $150,000 in the last three months but projects earning between $15,000,000 and $20,000,000 "eventually." The entrepreneurs invested $350,000 of their own money in order to get the service off the ground.
All of this is enough for Kevin O'Leary and Daymond John to team up and offer a deal on. Together, they offer $450,000 more than the entrepreneurs had originally been asking for but in exchange for 40% more equity in the business. Because of the additional capital being put into the deal, this results in a bite of just $300,000 from the original valuation but it also ends up making Kevin and Daymond equal partners in the business.