In Season 1 Episode 8, D.J. Stephan and Sean Conway appeared on Shark Tank seeking $90,000 for 10% of their online notes marketplace, Notehall.
Here’s a quick recap before we dive into the Notehall Shark Tank update.
Shark Tank Pitch Recap
- : The business is too much of a startup for him.
Out - :He likes the idea but it’s just not for him.
Out - : He wants to sell the business to a strategic buyer and them filthy rich.
Offer: $90K for a 51% equity stake - :
Offer: $90K for a 50% equity stake - D.J. and Sean are confident that they will hit their sales projections. If they don’t hit $1 Million in revenue, they’ll give Kevin their portion of the company.
Counter Offer: $90K for a 15% equity stake - A bidding war breaks out in the Shark Tank.
- :
Counter Offer: $90K for a 35% equity stake - :
Counter Offer: $90K for a 25% equity stake - :
Counter Offer: $115K for 35% equity stake. - : He doesn’t like that Robert has tainted the deal by asking for more cash and he intends to make him pay dearly for him.
Revised Offer: $115K for a 35% equity stake. - :
Revised Offer: $90K for a 25% equity stake and the option to buy her out in 6 months with 20% interest - Robert and Kevin decide to do the deal together.
Offer: $90K for a 25% equity stake. - Robert and Kevin seem like the most likely choice here but D.J and Sean accept Barbara’s deal instead. Of all the Sharks, they feel that Barbara was the most authentic from the beginning, while Kevin only tried to take advantage of them.
| Season 1 Episode 8 | |
|---|---|
| Episode Number | #108 |
| Network | |
| Air Date | October 6, 2009 |
| Business Pitch | Online document marketplace that enables students to buy and sell class notes |
|---|---|
| Entrepreneur/Founder | D.J. Stephan and Sean Conway |
| Asked For | $90,000 for 10% |
| Deal | $90,000 for 25% |
| Shark | Barbara Corcoran |
| Business Status | Acquired (By Chegg) |
|---|---|
| Estimated Valuation | $3.7 Million |
| Website | — |
After Shark Tank Update
Notehall, which started as an online platform in 2008 for college students to buy or share class notes or study aids, has been acquired. In June 2011, Chegg, a textbook rental company and online education provider, purchased it with the company valued at $3.7 million in equity 1.
Chegg has since incorporated the software into their menu of offerings. Listed on the New York Stock Exchange, Chegg makes its money selling subscriptions and learning services through its online platform.
Interestingly, one of the key co-founders, Sean Conway 2, went on to work for Chegg after the acquisition. He’s also since gone on to found Pillow, a company specializing in a niche in the travel industry. Pillow was subsequently acquired by Expedia.
Are you guys still in business with Barbara?
who acquired it???
Best Shark Tank Acquisitions
How is this legal? As an instructor, I feel I should be entitled to control the sale of notes (derivative works) created from my lectures.
How would Barbara Corcoran or any shark respond if they gave a seminar on a topic they were knowledgeable about, and found out someone had taken notes and was selling them?
My guess is the shark would be reaching out via their attorney for a little cease and desist.
You want in on the sales of your students notes? Thats some greedy crap right there.
Using that logic you should be paying every teacher and professor you ever had a royalty straight from your salary since youre making money on something they taught you.