Shark Tank: Novel Effect Accepts $500,000 Offer from Lori Greiner

By Erica Abbott

Novel Effect

First into the tank are Matt and Melissa Hammersley of Novel Effect, seeking $500,000 for 10 percent equity.

Novel Effect makes storytime more fun with “magical” storytelling elements. According to their website, the app utilizes invisible technology, smart voice recognition and custom music and sounds “to honor the spirit and tone” of beloved children’s books. Their library includes “Where the Wild Things Are,” “The Cat In the Hat,” “The Monsters’ Monster,” “Twas the Night Before Christmas” and many more. “Our hope is that whether you are a parent, a teacher, an older sibling, or a caregiver, Novel Effect will make it easier for you and a child to come together around a book and share a memorable moment,” according to their “About Us” page. The app is available through Apple’s app store for free.

They have sold their home and moved across the country to help make their company succeed and have raised $620,000 so far. The company participated in Amazon’s inaugural Alexa Accelerator program and is pre-revenue. Guest shark Sara Blakely really likes the idea but Mark Cuban worries about their concept of putting the books in bookstores. He believes they’re underestimating the challenges and goes out, followed by Daymond John.

Kevin O’Leary goes out because he believes there will be too many challenges, but Lori Greiner is intrigued. She offers $500,000 for 20 percent. The duo counters 12.5 percent, which is increased slightly to 13 percent when Blakely unsuccessfully attempts to partner with Greiner. Greiner counters at 15 percent, which they accept.

Each week on “Shark Tank,” budding entrepreneurs have the opportunity to pitch their emerging businesses to multi-millionaire and billionaire investors, known as sharks: Mark Cuban, owner of the Dallas Mavericks; Daymond John, fashion mogul and founder of FUBU; Kevin O’Leary, self-proclaimed Mr. Wonderful and founder of O’Leary Financial Group; Barbara Corcoran, real estate maven; Lori Greiner, queen of QVC; and Robert Herjavec, technology guru and founder/CEO of the Herjavec Group.

Philanthropist and Virgin Group founder Richard Branson, Spanx founder Sara Blakely, Skinnygirl Cocktails founder and Real Housewife Bethenny Frankel, Vitamin Water founder Rohan Oza and former MLB player Alex “A-Rod” Rodriguez are also slated to appear as guest sharks this season.

“Shark Tank,” which is based on “Dragons’ Den,” is produced by Mark Burnett and first debuted in 2009. To date, the sharks have invested more than $100 million in various companies after engaging in numerous bidding wars and shark fights. A new episode airs each Sunday at 9 p.m. on ABC.

Would you use Novel Effect? Sound off in the comments section below!

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Source:: Business 2 Community

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