Ben Young and Gregory Coleman of Washington, DC, appeared on Shark Tank in February 2016 to promote their fitness app, Sworkit. For those looking to get in shape, Sworkit has a variety of training plans available (cardio, core strength, stretching, yoga, pilates). The user can then sync her own playlist to the workout after deciding on the training type and duration. She is not required to do any particular squats that make her uncomfortable or which she is unable to perform.
Sworkit Net Worth
Billionaire investor Mark Cuban paid Young and Coleman $1.5 million for 10% of the company and access to unsold advertising space on the Sworkit app during their appearance on Shark Tank. However, the agreement fell through following the airing of the show. “It got to a point where we felt it was going to close, but there were just some last things, on our side, their side, and it kind of just went apart,” Young told the Washington Business Journal.
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We didn’t like some of the things he wanted, and he didn’t like some of the things we wanted, but at that moment in time, neither of us was willing to budge. Nexercise Inc. CEO Ben Young and President/COO Greg Coleman made headlines in February after closing what they called the largest tech deal in the show’s history. Cuban, the owner of the Dallas Mavericks of the NBA and the chairman of AXS TV, has offered to contribute $1.5 million in exchange for 10 percent of the company and $1.5 million in unsold ad inventory on the app.
That’s the bargain that was made on the hit reality show that has boosted businesses since its 2009 premiere, including those in the Greater Washington area like Pork Barrel BBQ, Surprise Ride, ValPark, and Zoobean. In order to get their firms off the ground or go forward, entrepreneurs “shark tank” their ideas and offerings to wealthy investors.
A fundamental valuation is reached between the show’s investors and entrepreneurs, but “a lot of other words that aren’t disclosed,” as Young put it. The “Shark Tank” encounter “creates this protracted, drawn-out process,” so the dynamics of your organization alter significantly, according to Young. They have the same option to withdraw as any other investor or you do as a business owner.
What transpired here is exactly that
Young claims that Cuban wanted to utilise a post-money valuation of $15 million, which would have reduced the investment of other investors. His group proposed using a pre-money valuation of $13.5 million, or the value of the company before any investments have been made. The deal “sort of just went apart” after “we thought it was going to close,” Young said, adding that “there were just some last things, on our side, their side
” We didn’t like some of the things he wanted, and he didn’t like some of the things we wanted, but at that moment in time, neither of us was willing to budge. You don’t know about details like that until you’re dealing with the investors, Young said, adding that the term in question “wasn’t that awful of a term.” Young added that even two weeks after the show aired, they were still unable to come to terms.
Cuban did not respond to an email request for comment for this article
It’s difficult enough to generate interest in a deal on the show as it is, let alone actually close it. Likewise, the vast majority of actual business transactions never conclude. “There’s a tremendous difference between shaking hands and saying that sounds good and actually sitting down and structuring the deal,” said Jonathan Aberman, managing director of Amplifier Ventures.
Many of those fail, and there’s no shame in admitting it. There is no nasty guy or evil doer in sight. Since then, the Sworkit co-founders have been reorganising, as they continue to reap the benefits of the show in the form of inquiries from prospective business partners and investors. According to Young, “I don’t have anything bad to say about the procedure.” It’s only that my perspective is grounded in realism.
