HOPSCOTCH

The business name is Hopscotch. Samantha John is the owner of the company, herself
presenting her company purpose and customers towards the Shark Tank. Hopscotch is an
application which is for educational purposes that could provide young children and
entrepreneurs to code and run their own online games using this application. The expansion of
the digital world Hopscotch gives an opportunity for the young entrepreneurs to build and run
their first business on the internet. This is a kid-friendly programming language to create many
games and sell those games to many children. This application makes the kids enjoy coding
and interest in coding which are valuable tools in the future that could lead various careers like
game designing and graphic animation designing. Hopscotch application can be downloaded
in mobile devices and tablets which is portable. Hopscotch spectators and customers will be
children and kids, which are there to make business from educational sectors which are
currently well-known areas to create business especially for young growing children. Before
starting the negotiation, Samantha gave the investors to demo her product by themselves so
that it is easier to understand what Hopscotch is about.

After the presentation, the investor starts to enquire about the Samantha background
and how she came up with this idea. Samantha explains the process of how she creates and the
history of the Hopscotch for the better understanding for the investors. Samantha is seeking
$400,000 for 4% for Hopscotch. The active user base for this application is 200,000 average
per month. The Peak of active users in 2015 was around 400,000. Since the company is
growing, they need capital to sustain the company, then turn the application into a subscription
method which for that time is around 6,200 with the payment of $8 per month and $80 per year.
The first investor raises the concern that Samantha wants to break the subscription method if
get the capital, which is he does not agree with the idea because it is hard to achieve while it is
actually good money for application-based business. Second investor thinks it is not possible
and feels Samantha doesn’t figure out what she wants and the scale of the project is very big
so he opted out from the investing idea. Third investor thinks she really does not fit for this
project investment and also how she could help this project to be more successful in future
times. Again, the first investor out from this project idea because he personally not feeling
confident in the application-based business. Fourth investor took the decision to not invest for
this project because she felt Samantha was not confident and not sure what she wanted for the
company.
Finally, the fifth investor called Mark Cuban starts his questing with if this application can
work in lower end mobile phones since he already exposed with this application before
Samantha come to this shows. Before offering initial offer Mark Cuban want to introduce this
company to his program called AI booth camp which help prioritise kids and minority
community to learn coding with making money with phones. The first offer that Samantha gets
from Mark is $400K for a 16% stake. Samantha wants to negotiate with Mark describing her
and the company treating them like a start-up but with experienced people around the
operations for 8 years. Since she is very confident about her company, she negotiates the offer
back with $600,000 for 5% within a second Mark told him is out of this project. Again, Mark
gave Samantha a last chance to re-negotiate, Samantha again put the offer she wanted with
$600,000 for 10%, another counter offer from Mark if $500,000 for 11% the deal not done yet.
Finally, Samantha negotiates with final value with %550,000 for 11% and the deal done from
both sides. Even though, she was in the edge she manages to secure the fund she wants with
proper value which Samantha find worth it. In Mark Cuban perspective since he already expose
this kind of application investment and used the Hopscotch application before he realised the
motive and the long road of this company that he could benefits from that make him to offer
the investment to Samantha.

Video Link:
https://www.youtube.com/watch?v=dKSrVSXvm4Y&ab_channel=SharkTankGlobal