QeepSake


QeepSake is a company from Newton, MA, that creates photo and text journals about kids that are recorded via text messages. All a user had to do is text a picture or a message to a number with their phones and the service will add what was sent to an online journal documenting the life of the child. Additionally, the service can prompt entries by texting questions that the parent can answer.

These journals can then be compiled into printed books priced from $29.99 to $44.99 based on the length of the book. Unfortunately, QeepSake has only sold four such printed journals.

The rest of the business is subscription based with a base price of $40/year going up to $95/year. They have 40,000 users with a 16% conversion rate to paid subscriptions. In four months they have made $255,000 "in revenue".

Though both Chris Sacca and Mr. Wonderful made offers for 20% equity, the entrepreneur declined and walked away without a deal.

This deal aired on Episode 9.07.

Analysis

QeepSake came into the tank overvalued. $255,000 in four months is $765,000 in a fiscal year and, even if growth were to continue apace (unlikely given the unusually high conversion rate to paying subscribers), it would still take several years of earnings to have that value make sense.

Given that he countered Mr. Wonderful at 12% equity and Chris at 14% and wasn't willing to budge beyond that, this appears to be more of a case of utilizing the tank to get the word out about his product without a real desire to make an actual deal. Using the Shark Tank Bump in other words.

Scroll chart to see it all!

Scroll chart to see it all!




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This page was last edited on 3 December 2019, at 17:38.