Bundil, a recently developed company, entered The Shark Tank seeking $100,000 for a 10% share of the company. Bundil is an app that allows users to take spare change from their everyday purchases and allows them to invest it in cryptocurrency. The app tracks the user’s spending and will automatically round purchases to invest that change into the user’s preferred cryptocurrency.
The primary benefit of the app is that users do not need to mine their own cryptocurrency, but rather are investing in the cryptocurrency of their choice, similar to investing in stocks. Cryptocurrency carries a monetary value, just as traditional money does, and can be used to purchase everyday goods and services. Its value fluctuates in a similar fashion to stocks. Micro-investment apps have been very popular because the users are able to set them and forget them while earning real money.
Because the app was just launched 60 days prior to Bundil entering The Shark Tank, it is currently a minimum viable product and being sold for a subscription fee of $3/month or $24/year for Apple devices only. An Android app is still in development.
Although software developer and owner Dmitri Love forgets his lines and struggles through his pitch, this product produces a lot of dialog between The Sharks as most of them do not fully understand cryptocurrency. They feel as though cryptocurrency is like the wild, wild west and it is still in its infancy as an industry. The investment is a gamble without a guarantee that it will be fruitful for the investors.
You don’t have to nail the perfect pitch to get the Sharks to bite. Know your business inside and out, have passion and grit, and show me you have customers who want what you’ve got. #Bundil #SharkTank
— Barbara Corcoran (@BarbaraCorcoran) October 22, 2018
— Kevin O'Leary (@kevinolearytv) October 22, 2018
— Daymond John (@TheSharkDaymond) October 22, 2018
Kevin O’Leary is very familiar with this business as he is an investor in similar apps, appears to be very critical of Bundil. He shares with Dmitri and the other Sharks that 80% of these businesses fail within 36 months. One of the main factors leading to failure is that customer acquisition often costs significantly more than most companies anticipate. It’s also a very volatile industry. Although Kevin does appear to be critical of the business, he makes Dmitri a surprising and very Sharky offer of $100,000 for a 50% partnership in the company.
#SharkTank #Bundil @kevinolearytv is the man! That young gent is going to be amazed at his success So what #Kevin owns 0.50% #Dimitri will be a millionaire before he’s 30 yrs old and 60 days after creating the app! #awesome
— FortunateLady (@Lailaine0815) October 22, 2018
— Shark Tank (@ABCSharkTank) October 22, 2018
I think the future of @bundilapp will be positive. Just how people want an easy way to invest fiat with @acorns or @Stash. Bundil will instigate the #crypto curious crowd to make a move! pic.twitter.com/O36XIBj3Cz
— ME81_DeepSea (@me81DeepseA) October 25, 2018
— J. Seaberry (@JJSea) October 25, 2018
— hopebroidery (@hopebroidery) October 22, 2018
Every time I swipe my debit card for an energy drink, dinner, movie, etc.. bundil takes my $3.20 charge rounds it up to $4.00. 80 cents buys Bitcoin. I don't miss the 80 cents, but after 100 purchases, I have 80 bucks worth of Bitcoin. It's just passive investing without thinking
— Rambo WhaleCat (@tacohen01) October 24, 2018
— Amy Naas (@AmyNaas) October 22, 2018
Kevin persuades Dmitri to take the deal by sharing that he has the biggest stumbling block, customer acquisition, already nailed. Knowing that Bundil could greatly benefit from Kevin’s knowledge in this market, Dmitri accepted Kevin’s offer.
What do you think of Bundil’s deal with Mr. Wonderful, Kevin O’Leary? Would you use this app to invest in cryptocurrency?
For a full summary of this episode, check out this article. Shark Tank airs on Sundays at 9:00 PM EST on ABC.
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