Highlights
- Founders seek $250,000 for 8% equity in Validated, an app that allows users to earn credits for parking and transportation by shopping at participating retailers.
- The Sharks express skepticism about the app’s complexity and market need.
- Validated ultimately went out of business in June 2019, just over two years after their Shark Tank appearance.
Overview
| Category | Details |
|---|---|
| Name | Validated |
| Founders | Ian Lyman, Tov Arneson, Alex Wilhelm |
| Industry | Mobile App / Transportation / Retail |
| Product | App that allows users to earn credits for rides and parking |
| Funding | $250,000 investment sought |
| Investment Ask | $250,000 |
| Equity Offered | 8% |
| Valuation | $3.125 million |
Ian Lyman, Tov Arneson, and Alex Wilhelm hope the Shark validate Validated, their app that lets users rack up credits for parking and transportation, in Shark Tank episode 823. The app takes the concept of retailers validating parking beyond parking. By spending at participating retailers, users accumulate points they can use to offset the cost of Uber or Lyft rides as well as parking.
The basic idea is people want to save money on parking and transportation and merchants want to increase customer loyalty and sales. Validated originally started as a parking app, but the founders pivoted when it became clear others were going to dominate the space.
Using it is simple. First, find merchants who participate, hit spending targets at those merchants, scan receipts to verify purchases, then use accumulated credits for participating transportation companies. It costs users nothing. Participating merchants foot the bill by “participating in the transportation ecosystem.”
This business needs capital to scale quickly. Will a Shark validate this business and invest?
Validated Shark Tank Recap
Ian, Tov, and Alex enter seeking $250,000 for 8% of the business. They explain their business, then begin talking with the Sharks. Lori liked the idea because it brought people into brick and mortar businesses. Barbara wants to know how much she has to spend to get free parking – the merchant decides. Chris asks about sales. They’re in two cities – Seattle and Portland with a total of 50 merchants. Each merchant is averaging 25 validations.
Did Shark Tank Invest In Validated?
Mark wants to know the tech side of things – merchants scan a QR code. The Sharks start offering up objections. Chris thinks it’s too complicated. So does Mark and he’s the first Shark to go out. Barbara doesn’t see the need; she’s out. Kevin interjects and says they’re going to zero quickly; he goes out and calls the business a dog. Lori can’t see a lot of people using it and she’s out. Chris is the last Shark out, saying once again it’s too complicated.
Validated Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. Kevin was right. This company went out of business in June, 2019 – a little over two years after appearing on Shark Tank.
Posts About Validated on Shark Tank Blog
Validated Company Information
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More products from this episode! Check out other businesses that participated alongside Validated.
