Hello Prenup Online Prenuptial Agreement
DEAL
EPISODE SUMMARY
🕓 Air Date: November 12, 2021
Asking For:
$150,000 for 20%
Investor:
Kevin O'Leary, Nirav Tolia (50/50)
Deal:
$150,000 for 30%
PRODUCT SUMMARY
HelloPrenup is a digital platform that simplifies the process of creating prenuptial agreements, making it quick, collaborative, and cost-effective for couples.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
HelloPrenup founders Julia Rodgers and Sarabeth Jaffe, with their diverse backgrounds, embarked on a journey to address a pressing need in the market—simplifying prenuptial agreements. Julia, hailing from Boston, had spent a decade as a divorce attorney, intimately familiar with the struggles and desires of potential prenup clients. She recognized the demand for a quicker, more collaborative, and cost-effective approach to prenuptial agreements, which were traditionally time-consuming and expensive.
On the other hand, Sarabeth brought her technical prowess to the venture. As a former software engineer at Microsoft, she possessed the skills necessary to develop a digital platform that could revolutionize the prenup process. Their partnership, forged in March 2021, was driven by a shared vision to introduce innovation into the age-old process of prenup creation. Remarkably, despite meeting face-to-face for the first time in the high-pressure environment of “Shark Tank,” they had already spent six months collaborating remotely, overcoming software development challenges to bring HelloPrenup to life.
Together, Julia and Sarabeth combined legal expertise with technical know-how, aiming to simplify prenuptial agreements and make them accessible to a broader audience, all while offering a more cost-effective and efficient solution. Their unique backgrounds and determination made HelloPrenup a promising venture in the legal-tech space.
The Product
HelloPrenup revolutionizes the prenuptial agreement process through its user-friendly digital platform. To create a prenup, couples simply visit the HelloPrenup website and embark on a streamlined journey. They kickstart the process by completing a comprehensive questionnaire, detailing the specific terms of their prenuptial agreement and disclosing their financial information.
The platform fosters collaboration between the partners, allowing them to address any disparities in their responses and negotiate the terms efficiently. Once the agreement is finalized, HelloPrenup generates a downloadable prenuptial agreement, which is legally valid, eliminating the need for costly and time-consuming attorney consultations.
One of HelloPrenup’s significant advantages is its affordability, with a fixed price of $599 for creating a prenup. This pricing model stands in stark contrast to the traditional average cost of $5,000 for prenuptial agreements. Despite its early stage and lack of profitability, HelloPrenup has ambitious plans to substantially reduce customer acquisition costs in the near future.
Currently, HelloPrenup holds the distinction of being the primary online resource for prenuptial agreement information, making it an invaluable tool for couples seeking a cost-effective, efficient, and legally sound way to protect their assets and define their financial agreements before marriage.
How It Went
The company’s position before Shark Tank
HelloPrenup, while facing operational hurdles during the challenging year of 2020 due to the COVID-19 pandemic, had managed to achieve $20,000 in lifetime sales. Despite these initial challenges, the company had set an ambitious projection of $4.1 million in revenue for the forthcoming year. This optimistic outlook highlighted the potential for growth in the prenuptial agreement market, driven by their innovative approach.
The primary financial challenge for HelloPrenup was customer acquisition costs, which they aimed to significantly decrease. The goal was to eventually achieve near-zero customer acquisition costs, enhancing the company’s profitability. Up to the point of their appearance on “Shark Tank,” HelloPrenup had been entirely self-funded by its founders. Sarabeth Jaffe, with her technical expertise, played a pivotal role in developing the platform. This self-reliance demonstrated their dedication and resourcefulness in bringing HelloPrenup to life.
HelloPrenup’s success could be attributed in part to its status as the leading online source for prenuptial agreement information. This recognition had positioned them as a trusted authority in the field, potentially driving organic customer acquisition. Their role as a go-to resource not only established credibility but also allowed them to cultivate a community of users who sought reliable information and guidance when navigating prenuptial agreements.
The Negotiations:
In the midst of their “Shark Tank” negotiations, HelloPrenup faced a pivotal juncture in their entrepreneurial journey. Their initial request for $150,000 in exchange for 10% equity had garnered considerable interest among the Sharks, particularly Lori Greiner, who saw substantial potential in their groundbreaking platform. Lori Greiner led the charge by making the initial offer, proposing $150,000 in exchange for a 30% equity stake, vividly showcasing her enthusiasm for the product and its market prospects.
While Kevin O’Leary initially expressed interest, he withdrew from the negotiation due to the founders’ inability to provide precise data on customer acquisition costs, emphasizing its critical role in his investment decisions. Robert Herjavec and Mark Cuban, seasoned Sharks, voiced concerns about the necessity for another platform in the prenuptial space, especially given the company’s early stage. Despite their initial intrigue, they eventually opted not to invest.
Sarabeth and Julia countered Lori’s offer with a proposal of $150,000 for 20% equity, with the aim of retaining a larger ownership stake in their company. However, Lori remained resolute at 30% equity. The negotiation took an unexpected turn when Nirav Tolia entered the picture, extending an offer to collaborate with Lori at a 15% equity share. This unforeseen development presented the founders with a distinctive opportunity to secure the backing of two Sharks as partners. Ultimately, they accepted the joint offer, wherein Kevin and Nirav made their final proposition of $150,000 for 30% equity, providing HelloPrenup with the essential funding and seasoned guidance needed to propel their growth and success.
