Jump Forward
DEAL
EPISODE SUMMARY
🕓 Air Date: October 20, 2009
Asking For:
$150,000 for 10%
Investor:
Robert Herjavec, Kevin O'Leary (50/50)
Deal:
$600,000 for 50%
PRODUCT SUMMARY
JumpForward is an online platform that empowers high school athletes to create profiles to market themselves to college coaches, while helping coaches comply with NCAA communication guidelines.
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Background Story
JumpForward, founded by Brian Duggan and Adam McCombs, emerged from a shared vision to revolutionize college sports recruiting. Brian Duggan, with experience in accounting, compliance audits, and investment banking from his tenure at Ernst & Young, brought a keen understanding of financial operations and strategic growth. Adam McCombs, also a former Ernst & Young employee, contributed expertise in technology and internet systems, having spent eight years at Cisco Systems and obtaining two CCIE certifications, reflecting his deep knowledge in networking and technology.
Their inspiration for JumpForward stemmed from witnessing the systemic challenges within college sports recruiting, where numerous talented high school athletes went unnoticed by college coaches. Leveraging their collective expertise, Duggan and McCombs conceptualized JumpForward as a solution to empower both athletes and coaches in navigating the complex recruiting landscape.
By providing an innovative online platform that allowed athletes to showcase their skills and coaches to discover prospects within NCAA regulations, JumpForward aimed to level the playing field and enhance opportunities for aspiring student-athletes. This vision, coupled with their combined professional backgrounds, laid the foundation for JumpForward’s mission to redefine college sports recruiting and empower the next generation of athletes.
The Product
JumpForward offers a comprehensive online platform designed to streamline the college sports recruiting process for both athletes and coaches. Athletes can create detailed profiles showcasing their athletic achievements, including pictures, videos, and statistics, providing a comprehensive overview of their abilities. These profiles serve as a digital portfolio, enabling athletes to market themselves effectively to college coaches nationwide.
For coaches, JumpForward provides a powerful search tool, allowing them to sift through thousands of athlete profiles to identify prospects that align with their program’s needs and preferences. The platform’s search functionality is tailored to help coaches efficiently identify and connect with promising athletes while ensuring compliance with NCAA regulations governing communication.
Key features of JumpForward include its compliance tools, which help coaches navigate the intricacies of NCAA regulations surrounding athlete recruitment. This includes a patented mobile application that alerts coaches to potential compliance violations when communicating with student-athletes, providing confirmations and reminders to ensure adherence to rules.
JumpForward operates on a subscription-based model, with colleges paying annual fees based on their level of participation. Additional fees may be charged for maintenance and consulting services, depending on the specific needs of the institution. The platform’s pricing structure is designed to be scalable and flexible, accommodating the diverse needs of colleges and universities across the country.
How It Went
The company’s position before Shark Tank
JumpForward demonstrated strong performance and positioned itself as a leader in the college sports recruiting industry. With over 30 schools and 300 college coaches already signed up, JumpForward boasted a robust customer base comprising both educational institutions and athletic professionals. The company’s success can be attributed to its strategic partnerships with colleges and universities nationwide, which serve as its primary customers. By providing valuable recruiting solutions, JumpForward has established itself as a trusted ally for athletic departments seeking to enhance their recruitment efforts and attract top-tier talent.
JumpForward’s revenue model revolves around subscription fees paid by colleges and universities, with pricing tailored to the level of service and support required. Additionally, the company generates revenue through maintenance and consulting services, offering further value to its clients. In terms of funding, JumpForward had already received a significant investment from its founders, with $300,000 of their own capital injected into the business. This initial investment underscored Duggan and McCombs’ confidence in the company’s potential for growth and success.
As for the company’s structure, JumpForward is likely organized as a privately held corporation, with Duggan and McCombs serving as co-founders and likely holding executive positions such as CEO and COO, respectively. The company’s leadership team is complemented by experienced professionals in technology, compliance, and business development, all working collaboratively to drive JumpForward’s mission and vision forward. With strong financial backing, a solid customer base, and a unique value proposition, JumpForward is well-positioned for continued growth and success in the competitive college sports recruiting market.
The Negotiations:
The negotiations for JumpForward were intense and showcased the Sharks’ keen interest in the company’s potential. Initially, Robert Herjavec offered $200,000 for 20% equity, while Kevin O’Leary countered with $300,000 for 35%. As the negotiations progressed, the stakes were raised significantly, with Herjavec proposing $400,000 for 50%, and O’Leary escalating the offer to $600,000 for the same equity stake. Duggan and McCombs carefully considered each offer, recognizing the value of the Sharks’ expertise and the need for substantial capital to fuel the company’s growth.
Ultimately, they accepted O’Leary’s offer of $600,000 for 50% equity, acknowledging the importance of having experienced partners and access to additional funding. However, a pivotal moment occurred when Herjavec and O’Leary briefly stepped aside to discuss their strategy. This led to a tense exchange, with the Sharks debating whether to collude to their advantage or compete for the deal. Ultimately, they returned with a joint offer of $600,000 for 50%, which Duggan and McCombs initially accepted.
However, the founders eventually decided to negotiate further, opting for a lower equity stake to retain more control over the company’s management and future growth. They proposed $300,000 for 25%, which the Sharks countered with $750,000 for 50%. Despite the allure of additional capital, Duggan and McCombs remained steadfast in their decision, ultimately accepting Herjavec’s initial offer of $600,000 for 50% equity, securing a partnership that would provide the necessary resources and expertise to propel JumpForward to new heights.
