Paparazzi Proposals
DEAL
EPISODE SUMMARY
🕓 Air Date: November 8, 2013
Asking For:
$250,000 for 20%
Investor:
Lori Greiner, Kevin O'Leary (50/50)
Deal:
$250,000 for 30%
PRODUCT SUMMARY
Paparazzi Proposals provides a unique service of capturing surprise marriage proposals through professional paparazzi-style photography.
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Background Story
James Ambler, the founder of Paparazzi Proposals, is a seasoned paparazzi photographer based in New York City. With six years of experience in this niche industry, Ambler has honed his skills in capturing candid moments under pressure. His background in paparazzi photography provided him with a unique perspective on capturing authentic emotions and reactions. The idea for Paparazzi Proposals emerged when Ambler himself proposed to his wife. Following the engagement, friends and family were curious about the romantic moment and expressed regret for not having photographic memories of it.
This sparked Ambler’s entrepreneurial spirit, leading him to identify a gap in the market for capturing surprise marriage proposals. Founded in June 2011, Paparazzi Proposals was born out of Ambler’s desire to offer couples a professional and discreet service to document their engagement moments. Leveraging his expertise in paparazzi photography, Ambler set out to create a business that could provide couples with high-quality images of their once-in-a-lifetime moments.
Based in the heart of New York City, Paparazzi Proposals quickly gained traction in the bustling metropolis, attracting clients who sought to immortalize their proposals in iconic locations like Central Park and Times Square. Ambler’s dedication to his craft and passion for helping couples create lasting memories has been the driving force behind the company’s growth and success.
The Product
Paparazzi Proposals offers a unique and comprehensive service tailored to couples looking to capture the magic of their marriage proposal. The process begins with a consultation where clients discuss their vision for the proposal, including the location, timing, and any special details they want to incorporate. Paparazzi Proposals then works discreetly behind the scenes to ensure every moment is captured flawlessly.
On the day of the proposal, a professional paparazzi photographer stealthily documents the entire event from a distance, ensuring the surprise element is maintained while capturing genuine reactions and emotions. Afterward, clients receive a curated collection of high-resolution images that beautifully encapsulate the unforgettable moment.
The benefits of using Paparazzi Proposals extend beyond capturing memories; the service allows couples to relive the magic of their proposal for years to come and share it with friends and family. Additionally, having professional photographs of such a significant moment adds an extra layer of sentimentality and authenticity to the couple’s love story.
Paparazzi Proposals can be booked through their website or by contacting their team directly. Pricing varies depending on factors such as the location and duration of the shoot, but packages are designed to accommodate various budgets. Clients can choose from a range of options to customize their experience and ensure their proposal is captured exactly as they envision it.
How It Went
The company’s position before Shark Tank
Paparazzi Proposals has demonstrated steady growth and a strong position in the market since its inception. The company primarily operates in New York City, leveraging the vibrant atmosphere and iconic landmarks to attract clients seeking memorable proposal experiences. While the company’s focus has been on establishing a foothold in New York City, there are plans for expansion into other cities to capitalize on growing demand for their services nationwide.
As part of their growth strategy, Paparazzi Proposals has formed partnerships with local jewelry stores to offer their services to customers purchasing engagement rings. These partnerships provide a mutually beneficial arrangement where jewelers can enhance their customer experience by offering proposal photography services, while Paparazzi Proposals gains access to a targeted customer base. The company’s clientele consists of couples seeking to capture the magic of their proposal moment in a professional and discreet manner. These clients often value the emotional significance of their proposal and are willing to invest in preserving the memory through high-quality photographs.
In terms of funding, Paparazzi Proposals secured a $250,000 investment from Kevin O’Leary during their appearance on Shark Tank. This infusion of capital provides the company with the financial resources needed to support its expansion efforts and further develop its services. With available capital from the Shark Tank investment, Paparazzi Proposals is well-positioned to execute its expansion plans and solidify its position as a leader in the proposal photography industry. The company’s structure likely consists of a core team of photographers, marketing professionals, and administrative staff, all working together to deliver exceptional service to clients and drive growth.
The Negotiations:
During the negotiations on Shark Tank, James Ambler, the founder of Paparazzi Proposals, sought a $250,000 investment in exchange for a 20% equity stake in his company. The Sharks were initially intrigued by the unique concept but expressed concerns about the valuation and scalability of the business. Kevin O’Leary was the first to make an offer, proposing $250,000 for a 50% stake in the company. While Ambler appreciated the offer, he felt that giving up half of his company’s equity was too steep. Other Sharks voiced similar concerns, suggesting that the valuation was too high for the current stage of the business.
After some deliberation, Lori Greiner made a revised offer, proposing $250,000 for a 50% stake, with the intention of being equal partners with Ambler. While this offer would have provided the funding needed for expansion, Ambler ultimately declined, expressing his reluctance to part with half of his company. Robert Herjavec then made a counteroffer, proposing $100,000 for a one-third stake in the company and offering to loan the remaining $150,000 as needed for expansion.
This offer was more appealing to Ambler, as it allowed him to retain a larger portion of ownership while still securing the necessary funding. In the end, Ambler negotiated further with Greiner and Herjavec, ultimately agreeing to a deal with both Sharks. They collectively invested $50,000 for a one-third stake in the company and offered to loan an additional $200,000 as needed. This creative structure satisfied Ambler’s need for funding while allowing him to maintain control and ownership of Paparazzi Proposals.
