D.J. Stephan and Sean Conway met at Arizona University and together they started a company called Notehall, a marketplace where students can buy and sell study guides and class notes.
Their goal is to rapidly grow the company, for which they need expertise and financial support. That’s why they appeared on Shark Tank Season 1 and asked the Sharks for $90k in exchange for a 10% equity stake in their company.
| Company Name | Notehall | |
| Founder/Co-Founder | D.J. Stephan and Sean Conway | |
| Founded | 2008 | |
| Product | Study guide and Class note marketplace | |
| Asked For | $90K for 10% equity | |
| Final Deal | $90k for 25% equity | |
| Shark | Barbara Corcoran | |
| Episode | S1 E7 | |
| Air Date | Sep 13th, 2009 | |
| Business Status | Acquired by Chegg | |
| Website | Visit Website | |
| Headquarters | San Francisco, California, United States | |
| Lifetime Sales | $5M *estimated | |
| Buy and Watch | Buy Now | Amazon Prime |
Business Pitch Episode Recap
Sean Conway has ADHD, which makes it difficult for him to focus in class. When he met D.J. Stephan at Arizona University, they came up with the idea for Notehall business. Initially, they allowed Arizona University students to buy and sell notes. Within 8 months, 40% of the campus people started using the website.
They allowed Kansas University students to access their website, which brought a lot of traffic to their site without any advertising. Now, they are planning to allow students from 24 more universities.
The website algorithm program shows 30% of the note previews to buyers. If the buyer is not satisfied with the notes, they will get a 100% refund. Stephan said that if they get help from the Sharks, they will launch nationwide.
The average note price is $4.90. The website takes 60% of each transaction, and the seller gets 40%. Within 8 months, they have had $59,000 in transactions on their website, with revenue amounting to $30,000.
Kevin Harrington didn’t think the company was worth investing in, so he declined to invest. Daymond John said that the business wasn’t investable for him, so he is out.
Kevin O’Leary offered $90k for 51% equity. Barbara Corcoran offered $90k for 50% equity. They countered with $90k for 15% equity and an insurance policy: if revenue doesn’t reach $1 million in 24 months, Stephan and Sean are willing to give up their equity.
Kevin made a counteroffer of $115k for 35% equity in the company. Barbara countered with an offer of $90k for 25% equity, with the condition that Stephan and Sean could opt to buy back the equity within 6 months by paying a 20% interest rate.
Meanwhile, Robert Herjavec made his initial offer of $115k, but he wants 35% equity in the company.
Kevin and Robert teamed up and offered $90k for a 25% equity stake in the company, but Stephan and Sean accepted Barbara’s offer.
Sharks Offers list!
| Sharks | Offers |
|---|---|
| Kevin Harrington | No Offer |
| Kevin O’Leary | $90k for 51% equity (#1) $115k for 35% equity (#2) $45k for 12.5% equity (Robert) |
| Robert Herjavec | $115k for 35% equity (#1) $45k for 12.5% equity (Kevin) |
| Barbara Corcoran | $90k for 50% equity (#1) $90k for 25% equity (#2) |
| Daymond John | No Offer |
| Founder’s (Countered) | One Counter |
| Final Deals | $90k for 25% equity (Barbara) |
Notehall Shark Tank Update
Barbara was very excited to work with Stephan and Sean, but they declined to accept her offer after the episode. Perhaps they felt they didn’t need investment after gaining popularity from appearing on the Shark Tank TV show.
Our research on Notehall updates revealed that in 2011, the American textbook rental company Chegg acquired Notehall. Stephan and Sean worked under Chegg for a year. After selling the company for millions of dollars, they started their own separate businesses.
If you want more progress and update reports on Shark Tank Season 1 businesses, we’ve shared many links below.
