SEASON 7 EPISODE 3
find and pay for Valet and Garage Parking
$300,000 for 20%
OUT OF BUSINESS
Parking in the Washington Dc tri-state area can be a huge hassle that can turn a fun night out to eat or watch a show into a stressful event. It can add hours to the night. In bad weather it can mean standing outside in the rain, snow or freezing temperatures.
Valet services can make the process easier but that is not always available at every location.
Valpark is a quick, easy and convenient way to find a valet at over 100 locations in Washington DC, Maryland and Virginia.
Users can access valet services through the Valpark mobile app. Before they even leave the location, they can access valet services and have their car waiting for them as soon as they are ready.
How Valpark Started
Wayne Johnson, a Washington DC entrepreneur, grew up in the DC metro area knowing the challenges of trying to find parking to enjoy the sites of the city. He often went out with his friends and found himself paying a large amount of money for parking.
Either they would have to pay for hours in a parking garage when they only needed it for a couple of hours or they would pay large sums of money for a valet. Johnson and his friends would also become frustrated because most parking options only took cash – which they were carrying less and less of.
Johnson looked deeper and found that most people are carrying less cash because they are using apps. Johnson envisioned a way for him and his friends to find parking through an app that would save all his profile and payment information and that could be used anywhere they wanted to hang out. With that, Valpark was born!
Valpark on Shark Tank
Johnson brought Valpark to Shark Tank in 2012. He asked for $300,000 for a 20% stake in the company.
Johnson justified his valuation by saying that the company had $270,000 in sales the previous year. He had invested $100,000 of his own money.
He reported he had an increase in sales after adding a convenience fee of 8.5% to the user. He planned to increase revenue even more by increasing the convenience fee to 15% and splitting that between the user and the venue. He would also charge the venue $49 month.
Johnson did not own 100% of the company. He had a partner who owned 49% of the company. This made negotiating with the sharks difficult.
Johnson was unable to get a deal on Shark Tank. They had issues with the partner’s level of ownership, questioned if Valpark could be expanded beyond the Washington Metro area, and felt that competitors could easily copy the model and put him out of business.