ENTREPRENEUR: Brian Duggan & Adam McCombs
PITCH: Jump Forward, an online service allowing high school athletes and parents to profile their skills to market themselves to colleges.
ASKING FOR: $150k for a 10% stake
BEST PART OF THE PITCH: The colleges pay a subscription fee as well as fees for maintenance and consulting. They have 30 schools signed up, 300 college coaches and 60,000 prospective athletes in the system. They've generated $150k in contracts in three months and believe it could be a 35 million dollar business. They proactively enforce the recruitment rules of the NCAA and have a patent on the mobile application aspect of contact between coaches and recruits.
DO THE SHARKS BITE? Barbara and Kevin H. are scared off by the risk of the technology business. Daymond is afraid it's all a little too complicated. They are out. Kevin O. is very impressed with the knowledge and expertise Brian and Adam bring to the table. He offers them $200k for 20%. Robert is equally impressed and offers them $300k for 35%. For the second time this episode, Kevin O. asks the entrepreneurs to step out of the tank so he can chat with Robert. Kevin O. suggests they collude with each other so they don't compete and drive up the price.
RESULT: Robert and Kevin O. offer $400k for 50% of the business. That offer is rejected. Robert then offers 600k for 50%. Brian counters by saying 50% will cost them $750k. But Robert and Kevin O. don't budge. It's a tense showdown until Brian finally says, "Done."
WANT TO KNOW MORE: Visit www.jumpforward.com.
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