VerbalizeIt Translation App
DEAL
EPISODE SUMMARY
🕓 Air Date: May 17, 2013
Asking For:
$250,000 for 15%
Investor:
Kevin O'Leary
Deal:
$250,000 for 20%
PRODUCT SUMMARY
VerbalizeIt offers a platform connecting users to live translators for instant communication in multiple languages, aiming to overcome language barriers globally.
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Background Story
VerbalizeIt founders, Ryan Frankel and Kunal Sarda, met during their time at Wharton Business School. Their entrepreneurial journey began with the recognition of the significant communication challenges faced by international travelers due to language barriers. Determined to bridge this gap, they conceptualized VerbalizeIt. By leveraging their education and networks, they recruited a diverse community of multilingual individuals who sought to monetize their language skills.
With a focus on quality, they established partnerships with language learning centers and relied on word-of-mouth referrals to build a reliable pool of translators. Their commitment to creating a platform that not only facilitates communication but also empowers individuals to earn income reflects their innovative approach to solving a global problem.
The Product
VerbalizeIt operates through a user-friendly app or website interface. Users register and, within seconds, are connected to live translators from around the world. The process involves dialing into the system, which routes the call to an available translator proficient in the desired language. Users can communicate their needs, and the translator facilitates the conversation in real time.
VerbalizeIt offers a subscription model where users can purchase minutes at varying rates, typically ranging from 50 cents to $1 per minute. Translators, recruited through language learning centers and word-of-mouth, earn between $7 and $15 per hour based on the minutes translated.
The platform incorporates a rating system to ensure quality, rewarding top translators with higher earnings. VerbalizeIt is currently available in five languages: Hindi, Mandarin, Spanish, Portuguese, and French.
How It Went
The company’s position before Shark Tank
VerbalizeIt had recently launched its service, with impressive initial sales of $10,000 within the first two weeks. The company had secured partnerships, including a pilot program with Skype, which enabled VerbalizeIt to tap into a vast user base. They were actively seeking investment to fuel their growth and expand their market presence. Despite being a young company, VerbalizeIt demonstrated promising potential, with a clear business model and a solid foundation for future success.
The Negotiations:
Mark Cuban offered $250,000 for 25% equity in the company, emphasizing the potential synergy between VerbalizeIt’s human translation service and machine language translation systems. Kevin O’Leary proposed a similar deal, but negotiations focused on equity distribution. He offered $250,000 for 25% equity. Ultimately, Ryan and Kunal accepted Kevin’s offer, recognizing the value of their expertise and alignment with the company’s vision.
Despite initial hesitation, they acknowledged the opportunity to collaborate with experienced investors who understand the business landscape. The negotiation process showcased the Sharks’ interest in VerbalizeIt’s unique proposition and the founders’ strategic decision-making.
