Miso Media Guitar Lessons App
DEAL
EPISODE SUMMARY
🕓 Air Date: March 16, 2012
Asking For:
$300,000 for 5%
Investor:
Mark Cuban
Deal:
$300,000 for 8%
PRODUCT SUMMARY
Miso Media offers Miso Music, an iPad and iPhone app that teaches users how to play various instruments through interactive digital lessons.
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Background Story
Aviv Grill, CEO of Miso Media, comes from a musical background with a recording engineer father and an opera singer mother. Having worked in entertainment previously, Miso Media marks Aviv’s venture into the tech industry. The idea for Miso Music stemmed from a desire to revolutionize music education and make it more accessible through digital platforms.
Grill’s upbringing in a musical environment combined with his tech-savvy aspirations led him to create Miso Media. The company debuted its flagship product, Miso Music, which garnered attention from notable investors like Google Ventures and celebrities like Justin Timberlake. This blend of musical expertise and technological innovation has positioned Miso Media as a promising player in the digital music education space.
The Product
Miso Music is an app available on iPad and iPhone that offers interactive lessons for guitar, ukulele, bass, banjo, and mandolin. Users can learn to play using either virtual instruments within the app or by connecting their real instruments to the device using adapters.
The app presents notes in a scrolling format similar to popular rhythm games like Guitar Hero, guiding users through songs in an engaging and intuitive way.
Additionally, Miso Music features in-app purchases for a vast catalog of sheet music from various artists, providing users with a comprehensive learning experience. The app is free to download, with revenue generated through in-app purchases of sheet music.
How It Went
The company’s position before Shark Tank
Miso Media has seen significant traction, with 80,000 downloads of the app in the past month alone. The company has secured investments from prominent backers like Google Ventures and celebrity endorsements from artists like Justin Timberlake.
Revenue is generated through in-app purchases of sheet music, with a conversion rate of approximately 8% of users becoming paying customers. Miso Media aims to capitalize on the $9 billion music education industry by offering a digital platform that modernizes and expands access to music learning.
The Negotiations:
Initially seeking $300,000 for 5% equity, Aviv Grill faces scrutiny over the company’s valuation, which has doubled since its last investment round. After Daymond John and Kevin O’Leary dropped out due to skepticism, Mark Cuban offered $300,000 for 8% equity. Grill counters with a proposal of $300,000 for 7%, citing concerns about lowering the valuation too much.
Eventually, Mark Cuban agreed to the revised terms of $300,000 for 8% equity, securing a deal with Miso Media. The negotiation process highlights the challenges of balancing valuation with securing strategic investors and the importance of finding partners who understand the vision for the company.
