What Happened to Splikity After the Shark Tank Pitch?
Splikity Shark Tank Update
Brothers Chad and Doug Clark went into the Shark Tank to pitch their password management software Splikity, donning their best suits and bowties. Their software promised cross-device functionality and secure password storage and encryption for $4.99 per month or $49.99 annually.
Chad and Doug appeared on Shark Tank requesting an investment of $200,000 for a 20% stake in Splikity. Splikity’s net worth was $2 million at the time of their pitch on Shark Tank in 2015. This valuation is based on the asked offer of $200,000 for 20% equity in the company.
However, their pitch quickly floundered when sharks Mark Cuban and Robert Herjavec, who have extensive cybersecurity backgrounds, started questioning them. The brothers revealed they had no technical or security expertise themselves, immediately causing Mark to lose faith and drop out.
Robert took issue with their vague, fluffy responses on such a critical security matter. Lori Greiner naively suggested the easy-to-use aspect would appeal to women, prompting Robert to rightly rebut that security is not a gendered issue.
Despite claiming around $55,000 in pre-show monthly revenue and interest from a major security company, the sharks remained unimpressed.
One by one they dropped out, unconvinced by the founders’ lack of domain knowledge and inability to provide substantive answers about their own product.
In a last-ditch effort, Kevin O’Leary offered $200,000 as venture debt in exchange for 10% interest.
However, the delusional brothers declined, walking away without a deal. Their great suits and ties could not make up for their lack of technical acumen and credibility in the cybersecurity space.
What is Splikity?
Splikity is a cloud-based password manager service that aims to provide an easy way for users to securely store, access, and manage all their passwords from any device they use by paying a recurring subscription fee.
Some key details about Splikity:
- It is a software that allows users to store and encrypt their passwords across all their devices.
- Users would pay either $4.99 per month or $49.99 per year as a subscription fee.
- It promises convenience by allowing users to access their passwords from any device securely.
- The core features seem to be password storage, encryption, and synchronization across devices for a monthly/yearly fee.
Who Founded Splikity?
Splikity was founded by Chad Clark and Doug Clark. Recognizing their lack of technological expertise, the brothers were inspired to develop user-friendly software that reduced the need to memorize passwords while maintaining security.
Most importantly, they made certain that the software was accessible to all users, including older ladies.
Because the brothers lacked technological expertise, they recruited a team to create their application. There was noticeable interest in the program once it was created.
As a result of one of these interests, a business paid $50,000 for the right to use their software.
What Happened to Splikity at the Shark Tank Pitch?
Chad and Doug Clark founded their password management software company Splikity in 2015. When they entered the Shark Tank, they immediately began pitching their story.
The brothers stated they were seeking $200,000 for a 20% stake in the company, which valued Splikity at $1 million pre-funding.
It was noted that Chad and Doug both still lived with their parents and had no technical or cybersecurity expertise.
This lack of relevant background immediately raised red flags for Mark Cuban, who swiftly dropped out, seeing their product as a potential security risk that could enable hackers to steal users’ passwords easily.
Robert Herjavec wanted to understand more about the app’s security features and autonomous capabilities given the sensitive nature of password management.
Lori Greiner naively highlighted how easy the app seemed to use, even for non-tech savvy women, prompting Robert to rightly rebut that security is not a gendered issue.
The brothers shared that Splikity charged $4.99 per month or $49.99 annually and claimed sales of $55,000 in the month prior to taping, which they attributed to a royalty deal they could not disclose details about.
Barbara Corcoran wondered if the app simply aggregated passwords, relating her own struggles with forgotten passwords. Cuban criticized their secrecy around this mystery royalty partner.
As questions mounted about the vague security claims and technical aspects, the cybersecurity expert Herjavec admitted he knew “too much” about the risks and exited.
Corcoran left next, confused about the service, stating she couldn’t properly evaluate it. Greiner also dropped out, unable to fully grasp the product.
The last shark, O’Leary, saw potential demand but instead of equity, offered $200,000 as venture debt with 5% interest that had to be repaid from 10% of revenues until $600,000 was returned.
Despite admitting the deal could be promising, the overconfident brothers declined O’Leary’s offer outright.
As they protested wanting more time to explain, Herjavec bluntly stated “It’s not my job to listen; it’s your job to convince me to listen.” He criticized their inability to clearly pitch, calling Cuban “very rude” in his assessment of their poor showing.
What Happened to Splikity After the Shark Tank Pitch?
There was minimal demand for the Tank app once it was released. As of 2021, Doug’s LinkedIn page still describes the company as “open.” The website is still up and running, but their social media accounts are dormant, and their app has only five reviews on the Apple App Store.
What is the Net Worth of Splikity?
Chad Clark and Doug Clark are asking $200,000 for a 20% stake in the company, indicating a $2 million valuation.
Who are the Competitors of Splikity?
Splikity’s competitors include 1Password, Bitwarden, BlindHash, and Cyclonis.
Splikity FAQS?
What became to Splikity following the shark tank?
There was minimal demand for the Tank app once it was released.
As of 2021, Doug’s LinkedIn page still describes the company as “open.”
The website is still up and running, but their social media accounts are dormant, and their app has only five reviews on the Apple App Store.
Is Splikity still operational?
According to the Splikity LinkedIn page, the company is still in operation.
The Splikity Password management app’s social media pages, on the other hand, have been deactivated for a prolonged length of time.
Furthermore, the app has just 1000+ downloads and 37 reviews on Google Play, earning it a 2.7-star rating.
Did Splikity get a deal from the Sharks?
No, Splikity did not get a deal from any of the Sharks on Shark Tank.
The key points regarding their failure to secure an investment:
- Mark Cuban dropped out early, seeing their password management product as a potential security risk that hackers could exploit.
- Robert Herjavec, despite initially expressing interest, eventually went out after growing too concerned about the technical aspects and security shortcomings he knew “too much” about.
- Barbara Corcoran and Lori Greiner also dropped out, unable to fully understand the product and value proposition.
- Kevin O’Leary made an offer of $200,000 as venture debt (not equity) with 5% interest, to be repaid from 10% of revenues until $600,000 was returned. He also wanted 5% equity.
- However, Chad and Doug Clark declined O’Leary’s debt/equity offer outright, seemingly overconfident in their ability to succeed without the Sharks’ investment.
So in the end, despite having claimed $55,000 in recent monthly revenues, the founders failed to convincingly pitch their password manager Splikity to any of the Sharks due to their lack of technical expertise and inability to clearly explain the product’s security capabilities.
As a result, they left the Shark Tank without securing any deal or investment from the Sharks.
Is the data they save with Splikity private?
Yes. Splikity encrypts and decrypts the data saved on their device, guaranteeing that only they have access to it.
Their data is secured using AES-256, an extremely advanced encryption technology used by the government to safeguard and keep TOP SECRET information.
Where is Splikity’s server located?
Splikity is hosted on AWS, the world’s most trusted cloud computing platform.
Amazon goes to great lengths to secure its data centres, both physically and digitally, and they take further precautions to protect their data.
Who owns Splikity?
Chad Clark and Doug Clark owns the business.
