Hater Dating App
DEAL
EPISODE SUMMARY
🕓 Air Date: November 26, 2017
Asking For:
$200,000 for 5%
Investor:
Mark Cuban
Deal:
$200,000 for 7.5% + 2.5% advisory shares
PRODUCT SUMMARY
Hater is a dating app that matches people based on their shared dislikes rather than common interests.
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Background Story
Brendan Alper, originally from Brooklyn, New York, worked on Wall Street for six years before deciding to quit and pursue a career as a comedy writer. The idea for Hater originated as a comedy-sketch concept, but Brendan saw the potential for a real product. He launched Hater about two years prior to the pitch, securing initial funding from the founders of King, a mobile gaming company. Brendan has been fully committed to Hater, having liquidated his 401(k) and cashed in his life savings to support the venture.
The Product
Hater is a unique dating app that matches users based on their shared dislikes. Users can express their feelings toward various topics by swiping left (hate), and right (love), or choosing other options like dislike, like, or neutral.
The app aims to create closer bonds between users who share similar dislikes, leveraging the concept that hating the same things can bring people together.
While the app is currently free, the company plans to monetize through advertising, leveraging the data collected to provide valuable insights for targeted marketing.
How It Went
The company’s position before Shark Tank
As of the pitch, Hater had launched around Valentine’s Day and accumulated over half a million users. The primary user concentrations were in New York and Oslo. Despite having zero sales at the time, the company had a valuation of $4 million. Hater had recently secured a $500,000 investment from the founders of King, providing them with a 12.5% stake in the company. Brendan had not taken a salary and had been fully committed to the business, even liquidating personal savings to fund its growth.
The Negotiations:
The Sharks were intrigued by the concept but raised concerns about the user base density, emphasizing the need for a more concentrated market presence. Lori Greiner and Barbara Corcoran both made offers, with Lori offering $250,000 for 10% and Barbara offering $250,000 for 10%. Mark Cuban countered with a more substantial offer of $250,000 for 7.5% plus 2.5% in advisory shares.
After Robert Herjavec joined the negotiations with a joint offer of $500,000 for 15% (with $250,000 each from him and Barbara), Brendan chose to accept Mark Cuban’s offer, citing Mark’s experience in the technology space and valuable connections as decisive factors.
