Highlights
- Josh Brooks seeks $300,000 for 5% equity in his company, Postcard On The Run, which turns smartphone photos into real postcards.
- The app has generated $450,000 in sales and has over 500,000 downloads but is not yet profitable.
- Brooks successfully negotiates a deal with Robert Herjavec, securing $300,000 for 10% equity after a discussion about the company’s valuation.
Overview
| Category | Details |
|---|---|
| Name | Postcard On The Run |
| Founder | Josh Brooks |
| Industry | Mobile Apps, Photography |
| Product | App that turns smartphone photos into physical postcards |
| Funding | Sought $300,000 for 5% equity on Shark Tank |
| Investment Ask | $300,000 |
| Equity Offered | 5% |
| Valuation | $6 million |
Postcard On The Runs owner Josh Brooks brings his old school, snail mail style app with a new school twist to the Shark Tank in episode 504, the season 5 première. Brooks also could bring the first celebrity “guest entrepreneur” with him. Selena Gomez is an investor and active user of the app which turns your smart phone photos into real, live postcards and mails them to the address of your choice. Postcard on the run brings “wish you were here” to a whole new level! In less than 2 years, the business has racked up over $450K in sales, but isn’t in the black just yet. Hopefully, Brooks, along with Selena Gomez, will get a bite from the Sharks and have the Postcard on the Run App sending pictures of Sharks.
Postcard On The Run Shark Tank Recap
Postcard On The Run owner Josh Brooks comes to the Shark Tank looking for $300,000 in return for 5% equity in the company. It’s a bold valuation for an innovative new company. The app allows consumers to take a picture, and create a postcard and have it produced and sent through snail-mail. The cards can include a scannable code that allows the user to view a video clip on their smart device.
Brooks has already created agreements with investors. The burden their ownership puts on Postcard On The Run may deter the Sharks, but decisions are made on numbers. So far, Brooks has sold $450,000 worth of postcards, and has just over 500,000 downloads of the free app. He’s raised $1.3 million in previous investment funds, on a $6 million valuation.
Mark Cuban believes the $6 million valuation is “ridiculous.” He’s out.
Kevin O’Leary agrees with Mark Cuban about the valuation, and believes that the company is a loss, monetarily speaking. He’s out.
Barbara Corcoran explains that postcards are a “gift,” and she loves getting them, but the limitation of having the message printed in a text typeface “takes the warm and fuzzy out” of getting a photo in the mail. She’s out.
Lori Greiner doesn’t believe the technology is proprietary. She’s out.
Robert Herjavec believes his kids would use the app, especially when he learns that Selena Gomez is invested in, and promoting the company. He loves the idea, but he’s not comfortable with the $6 million valuation. He makes an offer. $300,000, in return for 10% of the company. It’s Brook’s last chance to make a deal.
Brooks counteroffers, asking if he’ll go up to $5 million. Herjavec is willing to go up to $4 million. Brooks attempts to negotiate up to $4.5 million, but Herjavec won’t budge beyond $4 million. Brooks accepts and gets a Shark deal.
Postcard On The Run Shark Tank Update
With Herjavec’s infusion of cash, Postcard On The Run has continued since the business aired on Shark Tank. Several competing apps have entered the market place, making it hard for Postcard On the Run to hang on to its niche in the market. The social media pages are relatively quiet, but the app still appears in both iTunes and the GooglePlay store, and the website is active. It seemed that Postcard on the Run still had its feet under it, but this appeared on their website in September, 2015:
Effective October 1st, 2015 – we are closing down the Postcard on the Run service.
All orders successfully submitted by way of one of our apps on or prior to that date will be printed and shipped.
Thank you for your support! POTR
Looks like Postcard on the Run’s luck has run out.
Posts About Postcard On The Run on Shark Tank Blog
Postcard On The Run Information
This is the first company showcased on Shark Tank that I immediately looked up online the next day. I think this firm is going to put postcard makers out of business the way Napster decimated the music biz.
I don’t agree in this space. Apple had this exact model (sans the signing with your finger), and unfortunately they just pulled the app 2 weeks ago. And I was probably the only person who used it!
Great idea, but just not enough traction or attention in the market. I wish him all the best, but apps come and go.
The app was called “Cards,” for the record.
Hi,
we´ve had the same idea in 2005 already and are competing with postcard on the run with a better product and app. We don´t mind the shark. Happy competition.
axel will, ceo
pokamax
Have been using Postcard on the Run for a few months and had a recent problem that sent me looking for a phone number for them. Found this discussion while searching. Speculation about how well they will do (or not do) is over. This is on their website, http://www.postcardontherun.com
Effective October 1st, 2015 – we are closing down the Postcard on the Run service.
All orders successfully submitted by way of one of our apps on or prior to that date will be printed and shipped.
Thank you for your support! POTR
Hope Robert got his investment back!
Seems like a fantastic idea! Unfortunately it looks like Postcard on the Run never got off the ground and they’re no longer operating in 2018? I most of the best postcard apps I could find and came across a great alternative postcard app – Postsnap (https://www.postsnap.com) they have an app and an online postcard creator.
Josh is now Executive Vice President of Marketing and Operations of Plai Labs and has had different related jobs.