RewardStock Shark Tank Update – Shark Tank Season 10
John Hayes unveils RewardStock, a “stock exchange” of reward points, for investment on the Shark Tank Season 10 Episode 5.
John Hayes seeks a partner for RewardStock, a sort of “stock exchange” of airline, hotel, and credit card reward points, in Shark Tank Season 10 Episode 5. Hayes started the company in 2014.
Basically, they aggregate data from all available rewards (points or miles) programs and offer a cash value comparison of each reward’s value. These values fluctuate, much like the stock market. RewardStock analyzes whether it’s best for a traveler to pay cash or to use points for a given travel option.
Check out other Shark Tank Season 10 Episodes.
About RewardStock
| Category | Details |
|---|---|
| Business Name | RewardStock |
| Founder | John Hayes |
| Industry | Travel and Financial Services |
| Product | Platform analyzing and comparing reward points for travel |
| Deal Status | Deal secured with Mark Cuban |
| Investment Asked | $200,000 for 5% equity |
| Deal Outcome | $320,000 for 10% equity + 1% advisory shares |
| Valuation | $4,000,000 |
RewardStock works in two ways. For people who haven’t signed up for many credit cards or mileage programs, it asks about their travel habits and recommends specific cards and programs. People who are already enrolled in programs enter their information, and the algorithm analyzes and tracks their current programs.
Credit card companies beefed up their rewards programs in recent years to draw in more customers. Chase Bank’s Sapphire Card was a big hit last year because it offered 100,000 rewards points just for signing up. Credit card companies buy airline miles and similar benefits for pennies on the dollar so they can offer rewards for their customers.
For people who mostly use the same airline, the airline credit card and mileage perks are often the best bet, but most people don’t. RewardStock helps you decide which miles or points to use for any given trip based on its real cash value. They make money by charging ten bucks to book your free travel through them.
It’s the only app of its kind right now, and Mr. Hayes hopes a Shark will join him in entering the “stock market of travel rewards.”
RewardStock Shark Tank Recap
John enters the Shark Tank seeking $200,000 for 5% of his business. He tells how he came up with the idea and gives his pitch, explaining how it all works. To close out the pitch, two Hawaiian women come in and hand drinks and leis to the Sharks while a Hawaiian man juggles a fire stick. He demonstrates this so he can tell the Sharks he got a round-trip flight to Hawaii for $16.
His system analyzes all the potential deals and how to plan a trip most effectively. They make money by charging a $29 per year membership fee and referral fees when a customer buys something. In two years, he’s made $50,000 on 10,000 users and invested $20,000 of his own cash, and they raised $700,000 at a $3.5 million valuation with a convertible note.
Did RewardStock Get a Deal on Shark Tank?
Sara isn’t passionate about this business; she’s out. Lori thinks it’s super smart, but too early; she’s out. Barbara is concerned about the low revenue; she’s out. Kevin offers $200,000 for 10%. He asked Mark about his feelings, and Mark offered $320,000 for 10% and 1% advisory shares.
Mark says they’ll work out any issues with his convertible note. John takes the deal.
RewardStock Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. The deal with Mark closed. In November 2020, Experian acquired the company for an undisclosed amount. John says Mark was a big part of making the deal happen.
Posts about RewardStock on Shark Tank Blog
Where Can You Download It?
RewardStock is no longer a standalone app, and it has been fully integrated into Experian’s platform since the acquisition. You can’t purchase or download RewardStock directly. The features are accessible only through Experian’s services.
Check out their social media pages for the past updates: Facebook and Twitter.
Quick Summary
- John Hayes presented RewardStock, a platform that analyzes and compares the value of airline, hotel, and credit card reward points.
- RewardStock helps users decide whether to pay cash or use points for travel based on real cash value.
- Hayes sought $200,000 for 5% equity and secured a deal with Mark Cuban for $320,000 for 10% equity and 1% advisory shares.
Curious to know about more products from this episode? Check out other businesses that participated alongside RewardStock.
