Bundil Turns Spare Change Into Cryptocurrency
DEAL
EPISODE SUMMARY
🕓 Air Date: October 21, 2018
Asking For:
$100,000 for 10%
Investor:
Kevin O'Leary
Deal:
$100,000 for 50%
PRODUCT SUMMARY
Bundil is a mobile application that enables users to invest their spare change from everyday purchases directly into cryptocurrency.
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Background Story
Bundil, a cryptocurrency investment app, originated from the vision of Dmitri Love, a web developer based in Dallas, Texas. Dmitri’s journey into the crypto world began when his family sought his guidance on entering the cryptocurrency market. Faced with the complexity of the existing processes, Dmitri, with his background in web development, recognized an opportunity to simplify the way individuals invest in digital currencies.
Living in Dallas, Dmitri witnessed the growing interest in cryptocurrency, a trend he wanted to make accessible to a broader audience. As a seasoned web developer, he had the technical acumen to create a solution that would demystify the intricacies of crypto investment. His family’s inquiry served as the catalyst for the development of Bundil. The idea behind Bundil is rooted in the desire to make cryptocurrency investment more user-friendly. Dmitri understood that the existing methods of investing in digital currencies were convoluted and required a level of technical understanding that deterred many potential investors.
Bundil was conceptualized as a response to this challenge, aiming to provide a straightforward, automated solution for those who wanted to dip their toes into the world of cryptocurrency without navigating the complexities. Dmitri’s background as a web developer positioned him perfectly to bring this vision to life. Leveraging his skills, he designed Bundil to be a mobile application that would automatically round up users’ spare change from everyday purchases and invest it in popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin. The culmination of his technical expertise, personal experience, and the desire to simplify crypto investment led to the creation of Bundil, a platform that would later attract the attention and investment of Shark Tank’s Kevin O’Leary.
The Product
Bundil, a revolutionary cryptocurrency investment app, simplifies the process of entering the digital currency market for users of all levels of expertise. Operating on iOS with plans for expansion to web and Android platforms, Bundil introduces a novel approach to investing spare change from everyday purchases.
The app seamlessly integrates with users’ spending habits, tracking transactions and rounding up each purchase to the nearest dollar. For instance, if a user buys a coffee for $3.45, Bundil automatically invests the 55 cents as rounded change into the cryptocurrency of their choice. This “set it and forget it” mentality eliminates the need for users to grapple with complex algorithms or large sums of money, making crypto investment accessible to everyone.
Bundil currently supports popular cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. Users can choose their preferred digital assets, and the app ensures that even those without significant capital can participate in the crypto market. The pricing model involves a monthly fee of $3 or an annual fee of $24, offering flexibility for users to choose the payment plan that suits them best.
With a minimum viable product already launched and approximately 360 users onboard, Bundil demonstrates its commitment to providing a user-friendly and cost-effective solution for entering the dynamic world of cryptocurrency investment. As the app continues to evolve and expand its platform, it aims to make crypto investing a hassle-free experience for a broader audience.
How It Went
The company’s position before Shark Tank
As of the current snapshot, Bundil is in its early stages, having launched its minimum viable product approximately 60 days ago. The company’s health is characterized by a promising start, with around 360 users actively using the app. The customer acquisition cost is impressively low, standing at $2.77, showcasing a cost-effective approach to attracting users in the competitive cryptocurrency investment space.
Bundil’s financial position is fortified by its pricing model, which includes a monthly subscription fee of $3 or an annual fee of $24. This fee structure provides a steady revenue stream to support the company’s operations and future growth. In terms of partnerships, the transcript does not explicitly mention existing collaborations or strategic alliances with other companies. The focus appears to be on user acquisition through platforms like Facebook.
The customer base for Bundil consists of approximately 360 users who have embraced the platform within a relatively short timeframe. The company targets individuals interested in cryptocurrency investment but may find traditional methods too complex or financially demanding. The “set it and forget it” mentality appeals to micro-investment users who seek a hassle-free entry into the cryptocurrency market. It would be crucial for Bundil to secure additional funding to fuel marketing efforts, app development for web and Android platforms, and overall business expansion
The Negotiations:
The negotiations for Bundil on Shark Tank unfolded with a mix of interest and skepticism from the sharks. Dmitri Love, the founder, initially sought $100,000 for a 10% equity stake in his cryptocurrency investment app. Kevin O’Leary emerged as the primary interested party, offering $100,000 but for a more substantial 50% stake in the company. This offer raised eyebrows among the other sharks, as a 50% equity share is considered significant in the entrepreneurial world. Several sharks expressed reservations about the cryptocurrency space, citing its volatility and regulatory uncertainties.
Lori Greiner, Mark Cuban, and Robert Herjavec ultimately opted out, citing concerns about the industry being in its early stages and facing substantial competition. Kevin O’Leary, undeterred by the skepticism, presented himself as a valuable partner, emphasizing his expertise in customer acquisition and his commitment to Bundil’s financial literacy platform. He acknowledged the challenges of acquiring customers in the competitive landscape, emphasizing the need for a significant investment in marketing. While some sharks questioned the viability of the deal, O’Leary’s financial literacy platform aligned with Bundil’s mission.
Despite the reservations expressed by other sharks and the significant equity stake proposed by O’Leary, Dmitri Love ultimately accepted the offer. The negotiation concluded with a deal: $100,000 for a 50% stake in Bundil, as Dmitri recognized the potential benefits of having Kevin O’Leary on board, leveraging his financial expertise and substantial resources to propel Bundil to new heights in the burgeoning cryptocurrency investment market.
