Splikity Password Protector
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 2, 2015
Asking For:
$200,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Splikity is a password management software that automatically saves, fills, and syncs passwords across devices, creating strong and unique passwords for enhanced online security.
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Background Story
Splikity’s founders, Doug and Chad Clark, introduced their product on Shark Tank to address the common frustration of forgotten passwords. The brothers, who live with their parents, emphasize their dedication to Splikity, presenting themselves sharply dressed for the occasion. Despite lacking a technology background, they have developed the software and designed it along with their team.
When questioned about their security expertise, the Clarks mention implementing leading security measures with the help of experienced individuals in the industry. While facing skepticism from some sharks, they highlight the user-friendliness of Splikity and stress their commitment to solving the everyday password problem.
The Product
Splikity is a software designed to simplify and secure the password management process. It operates across various devices, automatically saving and filling passwords as users browse the internet. The software utilizes AES256 encryption, along with thousands of rounds of PBKDF2 and Bcrypt, adhering to industry-leading standards for security.
Splikity goes beyond basic password management by creating strong, unique passwords for all user accounts, enhancing online safety. The Clarks emphasize the simplicity of Splikity, claiming that users will never have to remember or type another password again.
The software also boasts a proprietary banner that interacts with users as they browse the internet, providing an additional layer of convenience. Splikity is available for a subscription fee of $4.99 per month or $49.99 per year.
How It Went
The company’s position before Shark Tank
At the time of the pitch, Splikity reveals sales of $55,000 since the beginning of the last month. The founders attribute this revenue to a royalty payment from a large security company that approached them and licensed their software. However, specific details about the company’s partner remain undisclosed due to a nondisclosure agreement.
The Clarks mention that they are in discussions with five other companies and have signed another deal since last month. Splikity aims to be a consumer brand targeted at non-technical users. While they express confidence in the product, the sharks raise concerns about their lack of technological background, which prompts Mark Cuban to drop out of the deal. The Clarks stand by their commitment to security and the user-friendliness of Splikity.
The Negotiations:
The negotiation process starts with the Clarks asking for $200,000 in exchange for 10% equity. The sharks express skepticism about the founders’ lack of a technology background, and Mark Cuban exits the deal early, stating concerns about the security aspect. The Clarks defend their commitment to learning and implementing security measures, but other sharks express reservations. Lori Greiner points out the potential appeal of Splikity to non-techie women.
As the pitch progresses, the Clarks face tough questions about the uniqueness of their product, with Sharks questioning the value proposition. Despite revealing $55,000 in recent sales and their deal with a security company, the sharks remain unconvinced about the scalability and market appeal of Splikity. In the end, no shark makes an offer, and the Clarks leave the tank without a deal.
