Kwame Kuadey’s dream business, Gift Card Rescue, is a platform that allows users to buy and sell their gift cards. He needed investment to take the business forward, so he appeared on Shark Tank Season 1 and asked the Sharks for $150k for 30% equity at a $500k Valuation.
If Kwame doesn’t get a deal, he will shut down this business. Do you think he will get investment, or will he have to shut down the business? Let’s find out what ultimately happened with this business.
| Company Name | Gift Card Rescue | |
| Founder/Co-Founder | Kwame Kuadey | |
| Founded | 2008 | |
| Product | gift card exchange website | |
| Asked For | $150K for 30% equity | |
| Final Deal | $200K for 50% equity | |
| Shark | Robert Herjavec & Kevin O’Leary | |
| Episode | S1 E4 | |
| Air Date | Aug 30th, 2009 | |
| Business Status | Out of Business | |
| Website | Visit Website | |
| Headquarters | Washington, United States | |
| Lifetime Sales | $30M *estimated | |
| Buy and Watch | Buy Now | Amazon Prime |
Business Pitch Episode Recap
By 2009, every year, $80 billion U.S. dollars worth of gift cards were sold in the United States. Seeing this opportunity, Kwame started his business, and this year, he has already sold $120,000 worth of gift cards. The gross margin in this is 25%.
He explained that the company’s valuation is based on three factors – Growth Potential, Partnering with Amazon, and the third factor is Kwame himself.
Daymond John and Barbara Corcoran said this business is not investable for them, so they are out. Kevin Harrington said the business concept is good, but he’s not ready for him to take the risk of investing, so he’s out.
Kevin O’Leary doesn’t think this business is worth $500k, so he offered from a startup perspective, $150k for 50% equity. Kwame countered with $150k for 40% equity, but Kevin declined. Robert Herjavec teamed up with Kevin and offered $200k for 50% equity, which Kwame accepted.
Sharks Offers list!
| Sharks | Offers |
|---|---|
| Kevin Harrington | No Offer |
| Kevin O’Leary | $150k for 50% equity $100k for 25% equity (Robert) |
| Robert Herjavec | $100k for 25% equity (Kevin) |
| Barbara Corcoran | No Offer |
| Daymond John | No Offer |
| Founder’s (Countered) | $150k for 40% equity (Kevin) |
| Final Deals | $200k for 50% equity |
Gift Card Rescue Shark Tank Update
According to our Gift Card Rescue update research, the company closed down in 2016. However, before that, Kwame had over $30 million in lifetime sales. He not only achieved millions of dollars in revenue but also fulfilled his dream.
Now, he is the CEO and Co-Founder of a digital marketing company named Pioneer Branding. This concludes our final update on his business ventures.
If you want to know the progress reports of more Shark Tank businesses that appeared in Season 1, below are some business links shared.
