Home
Posts

Shark Tank: Hopscotch Accepts $550,000 From Mark Cuban

3 minute read

StockSnap / Pixabay

In 2012, Brooklyn native Samantha John launched her company Hopscotch. After nearly a decade of business pivots and strategy shifts, Hopscotch came to the Shark Tank seeking a strategic investor that can help the platform reimagine its business model. Currently, Hopscotch is a subscription-based coding platform for children. Through various fun, interactive and age-appropriate activities, Hopscotch teaches children to code and promote their creativity to create their own games.

Hopscotch would like to move away from the subscription-based service which currently is their main revenue source so that the app can be open to all. They would like to instead, monetize games so that they make a profit from the downloads of games created within Hopscotch. The creator of the game would also receive monetary compensation. Samantha is seeking a Shark willing to invest $400,000 in exchange for 4% equity in Hopscotch. Although the company is profitable now, it is just barely breaking even. By removing their paywall, the Sharks are concerned that while they will increase the number of users to their platform, they will decrease the amount of money being generated.

See Also :

    Although the other Sharks are not as familiar with the company or product, Mark Cuban is a brand advocate for Hopscotch. After using this platform with his own children, Mark feels strongly about the mission of the company to create computer literacy and skills in children. Because he loves her company and loves how and what she teaches children, Mark decides to extend a partnership offer to Samantha. After several counteroffers and a firm stance from Mark that he would walk away from a deal, he and Samantha finally came to an agreement. Mark will invest $550,000 into Hopscotch in exchange for 11% equity.

    Do you think that this was a wise investment for Mark Cuban? If you were a Shark, would you have invested in Hopscotch? Start the conversation in the comments below!


    Post a Comment