Emergensee Personal Security App
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 24, 2014
Asking For:
$250,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
EmergenSee is a mobile technology turning smartphones into personal security systems, streaming live video, audio, GPS, and location data to designated contacts and responders during emergencies.
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Background Story
Phil Reitnour and Jason Friedberg, hailing from Melvin, Pennsylvania, brought EmergenSee to the Shark Tank, showcasing a revolutionary personal security solution. The backstory of EmergenSee is deeply rooted in the diverse experiences and concerns of its founders. Phil Reitnour, a former banker with a multifaceted background in oil, real estate, and finance, ventured into the realm of personal security due to a growing awareness of the limitations in existing emergency systems. His motivation stemmed from a desire to address the inadequacies of the 911 call system, particularly in situations where traditional emergency calls might not provide sufficient information for immediate and effective response.
Jason Friedberg, the other half of EmergenSee’s founding team, brought a unique perspective as a retired police chief. His firsthand experience in law enforcement underscored the challenges faced by emergency responders, especially when dealing with calls originating from mobile devices. Recognizing the need for a more advanced and comprehensive solution, Friedberg joined forces with Reitnour to create EmergenSee. Their collaborative effort resulted in EmergenSee, a mobile technology that transforms smartphones into powerful personal security systems.
The idea was born out of the realization that the increasing prevalence of mobile emergency calls was not matched by the capabilities of existing emergency response systems. The founders envisioned a solution that could provide live video, audio, GPS, and location data during emergencies, bridging the gap between technology and public safety. The development of EmergenSee aimed to empower individuals facing threatening situations and enhance the effectiveness of emergency response efforts.
The Product
EmergenSee is a cutting-edge mobile application designed to transform smartphones into personal security systems, providing users with a comprehensive set of features aimed at enhancing personal safety during emergencies.
Upon downloading the app for free, users gain access to a range of functions that can be activated with a single tap. In a situation where an individual feels unsafe or threatened, they can initiate EmergenSee, which streams live video, audio, and GPS data in real-time. This information is then transmitted to designated emergency contacts and responders, ensuring that help is just a tap away.
The app’s interface seamlessly connects to EmergenSee’s private monitoring center, offering additional capabilities such as text communication. Users also have the option to upgrade to a premium subscription at $8.99 per month, providing enhanced services. The free version sends alerts to family and friends but does not directly notify law enforcement, while the premium subscription includes monthly monitoring and direct communication with authorities.
Moreover, EmergenSee extends its services beyond individual users, offering an enterprise version tailored for colleges, universities, and corporations. This version involves setting up geo-fences to create secure perimeters, ensuring that any incidents within the specified area are immediately communicated to the respective public safety or security departments.
How It Went
The company’s position before Shark Tank
EmergenSee, with 211,000 downloads, stands as a dynamic player in the personal security technology sector, providing innovative solutions for individuals, businesses, and institutions. Despite the promising user base, the company faces financial challenges, with only $68,000 remaining in the bank. The founders disclosed an initial investment of over $3 million, reflecting their commitment to the development and promotion of the EmergenSee app. The company’s current revenue model includes a recently introduced premium service priced at $8.99 per month, providing enhanced features for users seeking additional security measures.
EmergenSee has successfully signed up colleges, universities, enterprises, and government agencies, expanding its reach across various sectors. Notable clients include colleges and universities, where the app’s enterprise version is implemented, creating secure environments through geo-fencing technology. In terms of funding, the founders indicated that EmergenSee has not yet achieved profitability, with expectations to break even around October. The company’s performance is characterized by ongoing efforts to secure additional capital, with no explicit information provided on current funding sources or potential investors.
EmergenSee’s current structure involves a partnership between Phil Reitnour and Jason Friedberg, with Reitnour focusing on the financial aspects and Friedberg contributing his expertise as a retired police chief. The company’s strategy includes offering both free and premium versions of the app, catering to individual users as well as institutions looking to enhance their security measures. However, the Sharks expressed concerns about the company’s overspending on technology development, its lack of profitability, and the founders’ limited technical expertise, highlighting potential challenges in sustaining and growing the business.
The Negotiations:
The negotiations for EmergenSee on Shark Tank unfolded with a pitch seeking $250,000 in exchange for a 10% equity stake in the business. The Sharks, however, expressed skepticism and raised concerns during the negotiation process. Lori Greiner questioned the distinct advantages of EmergenSee over directly dialing 911, prompting the founders to highlight the app’s additional features, including live video and GPS tracking. Mark Cuban expressed reservations about the substantial investment of over $3 million, particularly focusing on the overspending on technology development.
Despite the founders’ claims of providing state-of-the-art security technology globally, concerns about profitability and financial health arose, with only $68,000 remaining in the bank. Kevin O’Leary underscored the founders’ lack of technology expertise, a significant challenge for a company heavily reliant on technological advancements. Robert Herjavec added that starting with too much money can lead to arrogance, emphasizing the importance of adapting to change in the dynamic technology sector. Ultimately, none of the Sharks saw fit to invest in EmergenSee.
Mark Cuban and Kevin O’Leary both voiced their doubts about the founders’ ability to navigate the highly competitive and rapidly evolving technology landscape. Lori Greiner and Robert Herjavec echoed similar sentiments, expressing concerns about the execution and sustainability of the business model. Despite the Sharks’ unanimous decision to opt out, the founders remained optimistic, viewing the advice provided as valuable guidance for potential improvements to make their product more viable in the future.
