Village Scholarships – Crowdfunding Education
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 15, 2016
Asking For:
$125,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Village Scholarships is a crowdfunding platform that combines matchmaking and crowdfunding to create homemade scholarships funded by people known to the students, helping them ease the financial burden of college.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Antonio and Tasha Adams, twins from Denver, Colorado, present their startup, Village Scholarships, on Shark Tank. The idea originated from Antonio’s personal experience of losing two athletic scholarships due to season-ending injuries. Tasha, with a background in starting three previous startups and having received a full ride in optical engineering, joined forces with her brother to address the challenges of financing higher education.
Their concept involves a matchmaking approach to crowdfunding, allowing friends and family to contribute to a student’s college fund, which can then be matched by other contributors. While they acknowledge being in the early stages with an incomplete website, they emphasize the potential impact on reducing student debt.
The Product
Village Scholarships operates as a traditional crowdfunding website but introduces a unique element of matching funds. Students create profiles on the platform, inputting details such as their institution, major, and tuition goal.
They then share their campaign with their social network, and after successful fundraising, the funds are transferred directly to their university accounts. The company plans to charge an 8.5% fee upon the completion of a student’s campaign.
How It Went
The company’s position before Shark Tank
At the time of the pitch, Village Scholarships is in its early stages, with users having entered data on the platform, but the website is not yet complete. The founders highlight the increasing trend in crowdfunding for college tuition, citing platforms like GoFundMe. However, the Sharks express concerns about the 8.5% fee, with some arguing that it might be too high, especially considering the majority of funds come from friends and family.
The Negotiations:
The negotiation process sees skepticism from the Sharks regarding the viability of the business model and the high fee structure. Kevin O’Leary opts out early, expressing concerns about the competitiveness of the market. Other Sharks follow suit, emphasizing that the concept is interesting but lacks clarity on how it will work.
While some appreciate the potential, they ultimately pass on investing due to the early stage of the company and the need for further development and execution. In the end, the founders leave without a deal but express gratitude for the feedback and commit to improving their company based on the Sharks’ suggestions.
