The Two Owners Of Gamify Do Not Want The Same Things? | Shark Tank AUS | Shark Tank Global

First to wade into the tank tonight are Techies Johnny and Tony who treat Business like a giant gang we're going Into the tank today and we are prepared Sweet man ETA five seconds to do this [Music] Oh owls here we go [Music] Welcome to the test So uh you're probably wondering why We've got these uh crazy sharks of our Own and uh this groovy scuba gear not Really you see all sorts in here I think It's weird that's because we're all About capturing attention and having fun With Brands so my name is Tony Walden And I'm the managing director of gamify My name is Johnny Shannon I'm the CEO of Gamify and the head of sales for Australia at we specialize in Making branded personal ads for video Games We've done games for KFC Wendy's Pita Pit in New Zealand and a whole bunch of Other brands These brands use us to have a little Video game that can interact with Customers we have created a software Which now allows us to create these Mobile video games in around one-fourth The time and one-fourth the price of our Major competitors Just to clarify you have developed a

Software system that allows you to Quickly produce all sorts of Gamification for products and brands of Any kind crit I'm looking for um uh two hundred Thousand dollars for 10 of our business With that 200 000 and mentorship we Would like to make a global Brand Um and have a heck of a lot of fun doing It Very exciting pitch guys do you now do You want to take your stuff off yes okay Great so before we get into serious Business show us what it does get down To the real business of playing some Games All right Fascinating okay yeah we've got a little Game here all right just hit play are we Ready Johnny and Tony ended the tank Help them catch Andrew Banks swipe on Him and avoid being bitten Oh my God oops here we go Hey oh oh I got it oh hey I got it oh Man hey look at this Oh I think I'm going to own this company He's a gamer congratulations 14. yeah Okay I think we get the gist smart it's Actually smart Gamification is the future in retailing Do you know anything about mine Companies involvement in gamification I feel really bad now

We did one called free the fruit no I'm Not you've done no research mate We got 56 million minutes of use and we Actually our sales increase by 15 during That period So so this works is what I'm saying yeah Well before we drill 2D let's find out About you how do you know each other I Had a friend that invested in the Company as well and he just said to me Look what you guys need is to get an a Salesman on and he profiled Johnny to me And I was really impressed with Johnny Why I was impressed with Johnny because Of his history effectively he started a Company which is listed on the Australian stock exchange over a billion Dollars wow What was that company push pay Holdings Push pay Holdings well done effectively When we came across them he was hard to Catch We had to like pull our socks up and we Had to get everything in line for him And you know we had to show that there Was potential in this business And what was it about Tony Johnny yeah That somehow convinced you to join this Quite Wild game show uh Tony actually Approached me about five months ago to Invest in this company I said no originally Um if I be honest the financials weren't Very good at the time

Foreign I thought he's got a really good product But he's not very good at communicating About a month later they came back with Actual half decent financials And I thought this has got some pretty Good legs to it and I said um look I Actually think we can work with this and So I jumped in it basically pretty much Full force So you've done all the due diligence for Us we like it who'd started the business Tony originally started it right what Shares do you own in the country 31.5 You gave him a big chunk of the business Yeah 31.5 and you're the balance no I'm 20 and then there's other small friends And family shareholders effectively We've then created a new company and Brought Johnny into that so you're the Largest shareholder now correct yeah we Really wanted them Tony I'm sitting here and thinking it's The Donnie show Well it's because he's quite impressive So I don't care yeah this was your thing You've gone and assembled a team and and I just want to know how you feel about That because well I'm I'm All About The End Result which is making gamified Great so you know effectively whatever I've got to do to do it and I mean the Whole thing we wouldn't be here So tell us about cash flow and what the

Next 12 month sales looks like We've just hit this Tipping Point really Where we've managed to you know clear Out clear our boards of debt and we're Now Starting to be cash flow positive for The first time Advise what are you expecting to get Back in five years time I think it could Minimum absolutely minimum be a 50 Million dollar company Wow you've already said you're already Working with some players great talk About the success for clients because Really that's where your success is is Absolutely our last big one was probably In New Zealand we built them a game and Um of the 11 000 staff that they were Pushing it to we had uh 7 800 of this Stuff actually engage with it oh very Good and we had a hundred and forty Thousand plays that is good Sharks what are we doing I'm I'm gonna I'm gonna simplify this For you I'm carrying some scars from Investments in the game Space so when You mention the word games my eyes start To flick a little bit So um I wish you all the best Um before you say I'm out can I go back Like five seconds [Music] That's a no I've got lots of exposure in this space

I've funded five games I know a lot about this and how Bloody Heart it is and how well-funded Competitors are If you can nail it and win it I've got So much respect for you But it's just not a journey that I want To go on But I'm done I'm out yeah Where are you up to Glenn you know this Sort of deal I'm just completely dumb Money and I'm sitting here listening to My learned a chap who's lost a lot of Money in this space Scared nail out of me Yeah I don't know this space at all I'm Out so good to me thank you thank you Really It's big valuation I know I can't negotiate you down Because it screws the whole cap table I'll be open to the negotiate What from the 10 percent Correct But that that's undermining your own Equity that's okay with me really Really you've done your pitch and you Know I I think the the issue is that it Just didn't get me across the line sure My gut is telling me back away so I'm Sorry guys I'm out Sure thank you thank you Curious I run a Services business the big red

Group which provides marketing services To all of our businesses And I'm wondering if that it fits as Part of the services we need to offer If you're not offering playable ads you Should be I'm wondering though if I need to try Before I buy Basically I think it should become a Customer first if I love it so much I'll I'll regroup around but for this deal How it's been presented today I'm out Sure thank you thank you There's only one shark left Proof that you can can turn this Business into something I don't know anything about tech but my Digital team are extraordinary So the only way I can do a deal with you And the only way I can think it can work Is this The deal is two hundred thousand dollars For 25 percent And the deal is subject to our digital Team telling me that they can get to 50 Million dollars Janine's just more than part of your Valuation I just want to clarify you are here for A 200 000 investment for ten percent Yeah that's a bit of a haircut how are You feeling about that Would you mind if we speak about this Quickly sure thank you

Don't you think they're a little too Desperate to do a deal I just wonder why They would even consider 25 yeah I think You're desperate they're desperate I don't know that's about It's a bit much isn't it it's a huge Level that's ridiculous I think she Might absolutely either but can we go 20 At the what does that evaluation it Makes it a million dollar valuation Foreign What are you saying to Janine's offer of 200 000 for 25 percent Could we counteract would you take 20 Percent You're not happy are you No I'm not really that happy why not Um I just Feel right Um I just think that all the other Shareholders are going to think that Because the amount of capital that's Been put in that that really It's just not very attractive I think that going there would be a Little bit of a desperation plan I just Don't think we're desperate Foreign [Music] And that's okay there's nothing wrong With that If it doesn't feel right you don't do it Okay no worries at all guys all the best

Gentlemen great job Telling your story good luck He I thought it was going to take me for 20 Johnny was in at 20. I think it's About he's always winning and getting a Deal appears like winning maybe whereas Tiny was absolutely concerned about his Other shareholders

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