Season 6 | Episode 606 | EP606
In Season 5, Episode 6 of Shark Tank, Josh and Sara Margulis are pitching their honeymoon wedding registry fund, HoneyFund. HoneyFund is an alternative to the common wedding registry of kitchen appliances and bedding gifts. Guests can contribute to the couple's honeymoon easily through the couple's HoneyFund site. On the HoneyFund site, guests also have an option to use their credict card to make their contribution. Josh and Sara Margulis make a percentage of each Paypal transaction that takes place.
It's been so successful that Honeyfund has already raised $200 Million! Last year alone, they pulled in $987,000 with a $217,000 profit. They would like to expand to crowd funding services beyond the wedding registry fund, HoneyFund.
After pitching $400,000 for 10% of their company to the sharks and receiving offers of higher equity, they ultimately decide to go with Kevin O'Leary. Kevin will pay the couple $400,000 with no equity but he will require one third of the transaction revenue and $1,200,000 to be paid back to him. It sounded like a heavy offer but the HoneyFund owners felt like his was the best offer and they closed the deal.
Josh and Sara Margulis made a deal with Kevin O'Leary for $400,000 in return for 1/3 of their transaction revenue until Kevin receives $1,200,000 back.
Kevin O'Leary invested in HoneyFund.