Beneath the Ink – Embeddable Content For EBooks
NO DEAL
EPISODE SUMMARY
🕓 Air Date: April 17, 2015
Asking For:
$350,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Beneath the Ink is a digital-text technology company that enhances e-books by embedding rich curated content, called "Binks," beneath the text to provide readers with additional information, images, and immersive experiences.
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Background Story
Beneath the Ink, founded by Sherisse Hawkins and Alex Milewski, is a digital-text technology company based in Boulder, Colorado. The co-founders share a passion for revolutionizing the e-reading experience by introducing interactive and immersive elements to digital books. Sherisse Hawkins and Alex Milewski launched Beneath the Ink two years ago, driven by the vision of enhancing readers’ engagement with e-books. Sherisse brings her expertise to the venture, having a background in technology and a keen interest in leveraging digital platforms to enhance content consumption.
Alex, on the other hand, contributes his skills to the technical aspects of the business, being a proficient programmer. The idea behind Beneath the Ink emerged from the founders’ desire to address a common reader dilemma – the quest for additional information while immersed in a compelling story. Recognizing the limitations of traditional e-books in providing such supplementary content, Sherisse and Alex envisioned a solution that seamlessly integrates curated material beneath the digital text. This vision led to the creation of “Binks,” or “Beneath the Ink Links,” which serve as portals to a wealth of additional content, ranging from character details to real-world locations mentioned in the book.
The co-founders embarked on a mission to make e-reading not just informative but also interactive and exciting. With Boulder, Colorado, as their base, they assembled a dedicated team, raised $640,000 in funding, and developed a platform where authors can easily annotate and enhance their manuscripts. Beneath the Ink’s journey is characterized by a commitment to transforming the landscape of digital reading, offering readers a more enriching experience and authors a novel way to connect with their audience.
The Product
Beneath the Ink introduces a groundbreaking approach to digital reading, enhancing e-books with its innovative product. At the core of their offering are “Binks,” or “Beneath the Ink Links,” which revolutionize the reading experience.
Readers encounter Binks while immersed in an e-book. When curiosity strikes about a character or location, a simple touch on the glowing word triggers additional content. These Binks can contain a variety of information, from character details and pronunciation guides to images and maps, enriching the reader’s understanding of the narrative.
To access this enhanced reading experience, authors use an online portal provided by Beneath the Ink. Authors upload their manuscripts, curate the content, and with a click, distribute Bink-enabled versions across major distribution channels. Readers can then purchase these upgraded editions tailored to their preferred e-book platform.
Beneath the Ink operates on a threefold revenue model: licensing for corporations, a $12 monthly subscription fee for hybrid and self-published authors, and a $199 export fee per distribution channel. The cost for authors to integrate Binks into their books is less than $1,000, and Beneath the Ink takes a royalty share on each title sold, ensuring a sustainable and collaborative model for authors and the company alike.
How It Went
The company’s position before Shark Tank
Beneath the Ink, despite being in the pre-revenue stage, demonstrates a robust foundation and strategic positioning within the digital-text technology landscape. The company, headquartered in Boulder, Colorado, has successfully raised $640,000 in funding through a convertible note, reflecting investor confidence in their vision to transform the e-reading experience. The founders have taken deliberate steps to de-risk the business, assembling a dedicated team and securing reference accounts. The company’s strategic approach involves a three-tiered revenue model, encompassing licensing agreements with large corporations, a subscription model for hybrid and self-published authors, and export fees per distribution channel.
While Beneath the Ink currently has eight titles with embedded content, the founders are actively engaging in conversations with a prominent thriller author, signaling a potential expansion of their portfolio. The success of the company hinges on becoming a standard in the industry, supported by major publishers adopting the Bink technology for their e-books. In terms of structure, Beneath the Ink operates as a technology-centric firm, with founders Sherisse Hawkins and Alex Milewski at the helm. The company’s strategic focus on high-profile books and conversations with significant authors aligns with their vision to become a ubiquitous standard in the market.
However, the Sharks raised concerns during the pitch, emphasizing the need for the company to secure partnerships with major publishers to truly scale and validate their business model. While the Sharks expressed skepticism about the unproven nature of the market and the limited funding requested, Beneath the Ink remains determined to forge ahead. Their plan to utilize the funding for a go-to-market strategy indicates a commitment to testing their hypothesis and expanding their reach. Overall, Beneath the Ink presents a promising venture with a unique approach to transforming the digital reading landscape, poised for further growth and industry impact.
The Negotiations:
The negotiations for Beneath the Ink in the “Shark Tank” episode unfolded with a blend of interest and skepticism from the Sharks. Seeking $350,000 in exchange for a 10% equity stake, Sherisse Hawkins and Alex Milewski faced probing questions about their business model, revenue projections, and the scalability of their innovative product. The co-founders presented their unique digital-text technology, emphasizing the potential of Binks to enhance the e-reading experience. However, the Sharks, notably Kevin O’Leary, questioned the unproven nature of the business and the company’s ability to drive demand, considering the limited funding requested.
Despite the founders’ optimism and a clear revenue model involving licensing, subscription fees, and export fees, none of the Sharks made an offer. Lori Greiner acknowledged the merit of the idea but expressed concerns about the complexity and profitability of the venture. Kevin O’Leary, Mark Cuban, Robert Herjavec, and Daymond John all opted out, citing reasons ranging from the unproven market to the need for a more substantial investment to drive the company’s success.
Barbara Corcoran, while recognizing the potential, also declined to invest due to doubts about the business’s viability and profitability. The negotiation concluded with no deal secured, leaving Beneath the Ink without a Shark partner. Despite the setbacks, Sherisse and Alex remained resolute in their vision, expressing confidence that their product was the future of enhanced e-books and committed to expanding their reach in the market.
