Scholly College Scholarship App
DEAL
EPISODE SUMMARY
🕓 Air Date: February 20, 2015
Asking For:
$40,000 for 15%
Investor:
Lori Greiner, Daymond John (50/50)
Deal:
$40,000 for 15%
PRODUCT SUMMARY
Scholly is a mobile app designed to help students find and apply for scholarships by matching them with potential opportunities based on their information.
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Background Story
Christopher Gray, the founder of Scholly, hails from Philadelphia, Pennsylvania, and is currently a junior at Drexel University. His journey into the world of scholarships began when he faced the harsh reality of the soaring costs of college education. Struggling with financial constraints, Christopher took it upon himself to find a solution. In an impressive turn of events, Christopher not only succeeded in securing scholarships but amassed an astounding $1.3 million in funding for his education. This remarkable achievement prompted him to share his knowledge and experience with others facing similar challenges.
Teaming up with two co-founders, both skilled app and web developers, Christopher embarked on the creation of Scholly, a mobile app that aimed to streamline the scholarship search process. The idea behind Scholly was born out of Christopher’s personal struggle to find available scholarships efficiently. Recognizing the scarcity of a centralized platform for scholarship information, he decided to aggregate data from various websites and manually input them into a comprehensive database. This became the foundation of Scholly’s functionality.
The founders’ diverse skill sets, with Christopher serving as the business mind alongside his tech-savvy co-founders, positioned Scholly as a solution to a widespread issue. Their shared vision was to empower students by providing easy access to scholarship opportunities, enabling them to overcome financial barriers in pursuing higher education. The app’s genesis reflects Christopher’s passion for making a meaningful impact on the lives of students, creating a tool that not only simplifies the scholarship search but also opens doors to educational opportunities for those who need it most.
The Product
Scholly, a groundbreaking mobile app designed by Christopher Gray and his co-founders, serves as a comprehensive solution to the daunting task of finding scholarships. The app is available for both iPhone and Android users. Its intuitive interface allows students to input key information such as GPA, location, and other relevant details. Once this data is submitted, Scholly’s algorithm takes charge, generating a tailored list of scholarships that match the user’s profile.
The app’s database encompasses a vast array of opportunities, with 10,000 to 20,000 scholarships aggregated from various sources. What sets Scholly apart is its commitment to external scholarships, avoiding the limitations of institutional awards. The list includes scholarships like the Lori Scholarship, Bank of the Tank, Shark Bait Scholarship, and Mr. Wonderful’s Stingy Scholarship, each representing potential financial aid.
Scholly’s success is evident, having sold 92,000 copies in less than a year without any formal marketing strategy. Its simplicity and effectiveness make it a valuable tool for students seeking financial support for their education. By democratizing access to scholarship opportunities, Scholly empowers students to overcome financial barriers and pursue their academic dreams.
How It Went
The company’s position before Shark Tank
Scholly has demonstrated robust performance, evident in its impressive sales of 92,000 copies within a year, all achieved without a dedicated marketing strategy. The company’s success lies in its innovative approach to addressing the challenges of financing education, making it an appealing and accessible solution for students. The company operates in the education technology sector, primarily targeting students seeking scholarships.
Scholly’s user base comprises individuals eager to pursue higher education but facing financial obstacles. The app’s effectiveness in matching students with relevant scholarship opportunities positions it as a valuable resource within the education industry. The founders’ backgrounds, with Christopher Gray as the business lead and two co-founders specializing in app and web development, suggest a well-rounded team capable of handling various aspects of the business.
Christopher Gray did seek a $40,000 investment for a 15% equity stake during the pitch, and the deal was ultimately struck with Lori Greiner and Daymond John. The specifics of Scholly’s financial health, funding sources beyond the Shark Tank deal, and its overall organizational structure remain undisclosed based on the provided information.
The Negotiations:
The negotiation process for Scholly in the Shark Tank was marked by both enthusiasm and heated discussions among the sharks. Christopher Gray entered seeking a $40,000 investment for a 15% equity stake in the company. The pitch resonated with Lori Greiner and Daymond John, who were quick to express their belief in Christopher and the mission of Scholly. Lori and Daymond offered the exact deal Christopher sought: $40,000 for 15% equity.
However, the other sharks, particularly Mark Cuban and Robert Herjavec, raised concerns about the sustainability and scalability of the business. The discussion took an unexpected turn when Lori Greiner made an unusual move, expressing her commitment and compassion for the cause by offering to go in 50-50 partners with Daymond John. This meant $20,000 from each of them for the same 15% equity stake. This joint offer surprised and pleased Christopher, leading him to accept the deal on the spot.
The negotiation showcased a unique dynamic where Lori and Daymond, despite concerns from other sharks about the business model, emphasized their belief in the social impact of Scholly. The decision was made with a focus on the mission rather than immediate profitability, prompting a celebratory group hug and demonstrating a compelling blend of business acumen and empathy in the Shark Tank negotiation room.
