Innovative Journey of Novel Effect on Shark Tank
In the sixth episode of Season 9 of Shark Tank, which aired on October 29, 2017, Matt and Melissa Hammersley presented their pioneering voice-activated storytelling app, Novel Effect. Seeking a hefty $500,000 for a 10% ownership stake, the duo aimed to transform traditional children’s literature into an interactive experience. As Matt articulated, the app cleverly enhances storytelling by activating sound effects and music when users read aloud from certain books.
The audio features were meticulously crafted by seasoned professionals within the video game, film, and television sectors. Driven by the desire to make reading captivating for their young child, they developed Novel Effect. At that time, they boasted $620,000 in prior funding and a company valuation of $5 million. However, the sharks expressed apprehension over the absence of revenue.
Shark Tank Dynamics: Offers and Counteroffers
Mark Cuban and Daymond John opted out, raising concerns about the challenges of customer acquisition. Meanwhile, Kevin O’Leary withdrew his interest, recounting his experiences with a similar business venture. However, Lori Greiner saw substantial potential in the app and presented an offer of $500,000 in exchange for 20% equity. As fellow shark Sara Blakely considered joining forces with Lori, Greiner emphasized the importance of maintaining equity.
“As I think about it, you know, I could offer to go in with Sara, but the problem with that is that you don’t wanna give away a lot of equity,”stated the Shark Tank investor Lori.
In response, Matt proposed $500,000 for a 12.5% stake, leading to a final agreement of $500,000 for 15% equity from Lori Greiner.
Evolution of Novel Effect: From Concept to Market Leader
The inspiration for Novel Effect emerged before the Hammersleys welcomed their child when friends hosted a literary-themed baby shower. Witnessing a friend read a story accompanied by sound effects sparked an idea that evolved into a full-fledged endeavor over several months. In 2015, they launched the app, combining the art of reading with cutting-edge voice recognition technology. Their journey led them to sell their home and relocate to Seattle, Washington, to fully commit to this venture.
Their partnership with Amazon opened new doors through the Alexa Fund, dedicated to fostering voice recognition innovations. Initially turned down for a spot on Shark Tank, their exposure at the South by Southwest festival ultimately secured them a pitch opportunity in 2017.
Post-Shark Tank Developments and Achievements
Following their appearance on Shark Tank, the Hammersleys fortified their collaboration with Amazon and participated in the inaugural Techstars Alexa Accelerator program. The Novel Effect app continued to be available for free while they launched the Novel Effect Book Club, a monthly subscription service offering themed books.
Initially launched only on iOS, the app expanded to Android in 2018, broadening its reach and impact. The sound effects library grew exponentially, encompassing over 150 titles, and the company announced an additional $3 million in funding by May 2018. After the Shark Tank feature, the app experienced a surge, achieving 50,000 downloads within a short period and winning a Webby Award for Best Integrated Mobile Experience the same year.
Interestingly, despite not officially finalizing a deal with Lori Greiner, Novel Effect continued its trajectory of growth, releasing an Android app in 2019 and securing $1.2 million in additional funding. The collaboration with the Jim Henson Company in 2020 enhanced their offerings, introducing soundscapes for Muppet-themed children’s books and leading to the creation of voice-interactive television programs.
Novel Effect has gained notable visibility, being featured in prestigious outlets like Forbes and The Today Show. As of early 2023, their library expanded to over 750 titles, coupled with the launch of a Chromebook-compatible version of the app, enhancing accessibility for educational purposes.
The brand maintains an active website offering various products, including book activities, stickers, gift bundles, and speakers. They also engage with their community through social media, with a strong presence on Instagram and Facebook, boasting 36.4K and 6.2K followers, respectively.
Current Status of Shark Tank and Future Prospects
The reality show Shark Tank is currently airing its 16th season on ABC, continuing to inspire entrepreneurs and innovators.