Simple Habit
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 1, 2017
Asking For:
$600,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Simple Habit is a meditation app offering short, guided sessions by top teachers to help users reduce stress, improve focus, and sleep better in their busy lives.
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Background Story
Yunha, the founder of Simple Habit, shares her immigrant background, coming to the U.S. from South Korea, studying at Duke, working in investment banking, and founding a previous startup called Locket, which was later sold. After business school at Stanford, she started Simple Habit to address the limitations of other meditation apps and make meditation more accessible.
The Product
Simple Habit is a meditation app that provides a five-minute meditation solution designed for busy lifestyles. Users download and open the app, choose a relevant session (e.g., “Before Work”), and experience a guided meditation by top teachers worldwide.
The app features thousands of meditations, offering diverse voices and topics, ranging from mindfulness experts to executive coaches. Unlike other apps, Simple Habit aims to prevent users from tuning out by providing a variety of voices and content.
The app is free to download, but premium content, like meditations tailored for specific situations, is available through a subscription priced at $11.99 per month or $99.99 per year.
How It Went
The company’s position before Shark Tank
In less than a year since its launch, Simple Habit has gained over half a million users, growing from zero to $750,000 in annual recurring revenue. The company has been losing money, with profitability not being the main focus. Simple Habit has raised $2.8 million, with most of it still available, and is valued at $12 million.
The app has over 5,000 subscribers, and the business has been growing at 50% quarter over quarter. Future plans include scaling user acquisition, forming partnerships with celebrities and influencers, and building the world’s largest platform for health and wellness.
The Negotiations:
The Sharks express concerns about the company’s financials, given its substantial available capital and lack of immediate need for the requested $600,000. The negotiation takes a turn when Yunha declines offers from Richard Branson and Mark Cuban, arguing that their proposed valuations don’t align with previous investors’ contributions and obligations. The Sharks criticize Yunha’s motivations, with Mark Cuban even calling her a “gold digger.”
The negotiation becomes intense, with Lori Greiner expressing her reluctance to invest more money in the company, and Robert Herjavec and Mark Cuban eventually withdrawing their offers. The situation becomes heated, leading to an unexpected break in the pitch, with Lori Greiner and Robert Herjavec leaving the deal. Despite some attempts to salvage the negotiation, Yunha ultimately decides not to accept the offered deals and leaves the Tank without securing an investment.
