In Season 1 Episode 4, Kwame Kuadey appeared on Shark Tank seeking $150,000 for 30% of his gift card marketplace, Gift Card Rescue.
Here’s a quick recap before we dive into the Gift Card Rescue Shark Tank update.
Shark Tank Pitch Recap
- : He likes Kwame and he thinks Gift Card Rescue is a great business, but it’s not the type of business he likes.
Out - : She’s not interested and she’s not the right partner for Kwame.
Out - : He likes the concept but the business isn’t ready for him to take the risk.
Out - :
Offer: $150K for a 50% equity stake. - : Kwame makes the Sharks a counter offer.
Counter Offer: $150K for a 40% equity stake. - : He’s not wiling to change his offer. It is non-negotiable.
Offer: $150K for a 50% equity stake. - : He thinks Kwame is is going to need more cash. He would like to partner with Kevin for this deal.
Offer: $200K for a 50% equity stake. - Final Deal:Kwame accepts the offer from Kevin and Robert and leaves with a $400,000 valuation for Gift Card Rescue.
| Season 1 Episode 4 | |
|---|---|
| Episode Number | #104 |
| Network | |
| Air Date | August 30, 2009 |
| Business Pitch | online marketplace that allows users to sell and exchange unused gift cards |
|---|---|
| Entrepreneur/Founder | Kwame Kuadey |
| Asked For | $150,000 for 30% |
| Deal | $200,000 for 50% |
| Shark | Kevin O’Leary and Robert Herjavec |
| Business Status | Out of Business |
|---|---|
| Estimated Valuation | — |
| Website | — |
After Shark Tank Update
Though it’s not clear if the deal with the Sharks went through, Gift Card Rescue experienced several years of success following its appearance on Shark Tank, but things would soon take a turn for the worse.
The business sank after a lender sued the company for loan default and won the case. Consequently, the company’s bank accounts were frozen, and no progress would take place.
Founder, Kwame Kuadney, blamed the industry’s collapse on the lack of adequate financing to maintain its sustainability.
There were over 300 complaints about the Gift Card Rescue website, mostly from sellers who never received payments. The company was still struggling to resolve numerous disputes and blamed its senior lenders’ for the collapse.
If story is true, why wouldn’t Kevin and Robert find it? Also, the two are not mentioned anywhere. Good Sharks hide I guess.
Fund it, that is