ValPark Mobile Parking Solution
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 9, 2015
Asking For:
$300,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
ValPark Mobile is an app that simplifies valet and garage parking by allowing customers to pay securely through their smartphones, eliminating the need for cash transactions.
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Background Story
Wayne Johnson, an award-winning web designer from Washington, D.C., founded ValPark Mobile to address the inconvenience of traditional valet parking. He collaborated with his business partner, who owns the largest valet company on the East Coast. The idea stemmed from the common hassle of not having cash for valet services, leading Johnson to design an app that streamlines the payment process.
With $100,000 of his own money, Johnson developed the app, created a secure PIN system, and launched it in Washington, D.C., Maryland, and Virginia. The business partner owns 46% of the company and was seeking a solution to the industry’s reliance on cash transactions.
The Product
ValPark Mobile is an app designed to simplify the valet and garage parking experience. Users download the app, create a profile with their name, email address, and credit card information, and set up a secure PIN. When parking, users only need to provide their name and PIN to complete the transaction.
The app notifies attendants, and users can request their vehicle, receiving alerts about its status. ValPark Mobile operates in various locations, including restaurants, hotels, nightclubs, and sporting arenas. The company started with a beta in 33 locations and has expanded to over 115 in the Washington, D.C., Maryland, and Virginia area.
How It Went
The company’s position before Shark Tank
In the first year, ValPark Mobile generated $270,000 in sales, implementing an 8.5% convenience fee passed on to consumers. With a new business model, the company moved to a 15% convenience fee, sharing credit card fees with providers and charging vendors a $49-per-month fee for each location. Despite being a niche market, ValPark Mobile faced competition concerns and aimed to expand to different cities. The company’s founder invested $100,000 of personal funds, and the majority share (54%) is owned by the founder and the business partner.
The Negotiations:
The negotiations did not result in a deal. Kevin O’Leary expressed concerns about scalability and competition, ultimately declaring himself out. Other sharks, including Lori Greiner, Mark Cuban, and guest shark Troy Carter, raised doubts about the company’s potential to generate substantial returns. The founder revealed that he had rejected an investment offer from Uber in the past. Despite expressing confidence in the business, none of the sharks were convinced of its scalability.
Ultimately, all the sharks opted out, citing concerns about the company’s size, competition, and potential for significant returns. Troy Carter showed interest in the concept’s potential but didn’t find the valuation appealing. In the end, ValPark Mobile left the tank without a deal, with the founder expressing determination to continue growing the business.
