Biz Tips: Shark Tank Deal: Adventure Hunt Accepts $150,000 from Robert Herjavec

Biz Tips: Shark Tank Deal: Adventure Hunt Accepts $150,000 from Robert Herjavec

Biz Tip:

Shark Tank Deal: Adventure Hunt Accepts $150,000 from Robert Herjavec

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Brothers and co-founders, Jared and Sean Bingham of Adventure Hunt, came to the Shark Tank in hopes of securing $150,000 in exchange for 10% equity in their business. Adventure Hunt is a company that creates modern-day treasure hunts across the United States. Teams of 2-4 people can register to join a hunt where they will need to complete challenges, document their completion of those challenges via photograph and video on social media which will unlock clues to find the hidden treasure (typically a free vacation, although prizes can vary). Approximately 300 people compete for the treasure in each adventure.

Adventure Hunt has been in business for 18 months and has already reached $769,000 in sales by offering 3 levels of registration for their events. Jared and Sean are able to keep their costs down by not having any employees physically on the ground in the city where the adventure happens. The entire service is conducted through their mobile app on the day of the event and prior registration is done through their website. Their primary means for advertising is through social media (Facebook and Instagram) and they are interested in partnering with a Shark who is an expert in marketing and can help them get to the next level with their business.

Bethenny Frankel was the first Shark to bite and make Adventure Hunt an offer, however, her offer came with strings attached. She offered Jared and Sean $150,000 for 25% of their company, pending that they work team building exercises, social campaigns, and a dating service aspect into their strategic vision. Robert Herjavec was also very interested in investing in Adventure Hunt. He loves the concept of their company and sees major potential for their service in the corporate and enterprise business space. His vision includes corporate team building activities and does not come with any contingencies. He also offers $150,000 for a 25% share. He would like to use his investment to help them hire corporate sales representatives and help with their marketing campaigns.

In negotiating, Sean and Jared are concerned about giving up such a large piece of equity in their company and begin to counter with Bethenny and Robert. After discussing their valuation and the Sharks plans to support them, both Sharks drop their offers to 20% equity while still investing $150,000 in the company. Ultimately, Adventure Hunt chose to go into business Robert Herjavec and accepted his offer.

What do you think of Robert’s investment in Adventure Hunt? Would you register for one of their treasure hunts? Sound off in the comments below!

For a full summary of this episode, check out this article. Shark Tank airs on Sundays at 9:00 PM EST.

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