Qeepsake – Journal App
NO DEAL
EPISODE SUMMARY
đź•“ Air Date: October 29, 2017
Asking For:
$350,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Qeepsake is a text-based service that helps parents effortlessly capture and store memories and milestones of their children by sending and receiving text messages.
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Background Story
Jeff McNeil, the founder of Qeepsake, hails from Newton, Massachusetts. A father of five children himself, Jeff understands the challenges parents face in preserving the precious moments of their children’s lives. The idea for Qeepsake emerged from Jeff’s own experience with traditional baby books—often left empty due to the hectic nature of parenting.
Realizing the need for a more convenient solution, Jeff conceived the concept of Qeepsake, a service that leverages text messages to prompt parents with insightful questions about their children, making it easy for them to record and store memories. The Qeepsake journal serves as a digital repository for these memories, offering a hassle-free alternative to traditional baby books.
The Product
Qeepsake operates as a subscription-based service accessible via text messages, distinguishing itself from social media platforms like Facebook or Instagram. The subscription plans range from $40 to $95 per year, with an impressive conversion rate of 16% from the user base to paid subscriptions.
The service prompts users with age-informed questions, making the process personalized and unique to each child’s developmental stage. Jeff demonstrated the simplicity of the process by sharing how he could save memories about his daughter Annabel through a text message.
The entries are stored in a digital journal, and users can later order a physical Qeepsake book containing all their memories. The company has achieved notable success, with Jeff revealing over $250,000 in revenue within four months of operation and 40,000 activated users.
How It Went
The company’s position before Shark Tank
Qeepsake has demonstrated robust performance, with $250,000 in revenue generated within a short four-month period. Jeff, the founder, is now drawing a salary from the company. The subscription-based model has proven successful, with over 40,000 activated users and a remarkable 16% conversion rate to paid subscriptions. The unique selling proposition lies in Qeepsake’s ability to cater to the personal and intimate nature of parenting, distinguishing it from social media platforms like Facebook and Instagram.
Despite having sold only four physical books, Jeff clarified that the books were more of a prototype, and the primary focus was on the digital journal service. The company’s revenue and user base suggest a strong demand for the service, positioning Qeepsake as a viable player in the parenting memory preservation market.
The Negotiations:
Jeff entered the Shark Tank seeking $350,000 for 10% equity in Qeepsake. While showcasing the product’s simplicity and success, Jeff received a lone offer from Kevin O’Leary, who proposed $350,000 for a 20% stake. This prompted Mark Cuban to express concerns about potential competition and ultimately led him to opt out of the deal. Barbara Corcoran and Chris Sacca also bowed out, each citing different reasons, leaving Kevin as the only potential partner.
However, Kevin’s offer took an unexpected turn as he contemplated increasing his equity demand due to the diminishing number of sharks involved. This sparked a counteroffer from Jeff, raising the equity to 12%. Despite Kevin’s reluctance, Lori Greiner and Chris Sacca reentered the negotiations with competing offers. Lori proposed $350,000 for 20%, while Chris Sacca mirrored Kevin’s initial offer of $350,000 for 20%. Jeff countered again, offering 14% equity.
After some back-and-forth, Lori stuck with her 20% demand, and Chris Sacca maintained his 20% offer. In the end, Jeff declined both offers, emphasizing the value he placed on the company and expressing gratitude for the consideration. The negotiations showcased Jeff’s determination to retain a higher percentage of equity for the potential growth of Qeepsake, despite the sharks’ varied perspectives on the deal.
