Scan is a startup that recently went on the venture capital TV show “Shark Tank” to ask for $1 million in funding. Scan founder Garrett Gee made the pitch to the investors. Scan raised $7 million at a $21 million valuation from Google Ventures, Menlo Ventures, and Entree Capital.
Gee told AllThingsD that Scan was open to a deal, but the “exposure was definitely a top priority/perk.”
Scan is a QR code scanning mobile app for individuals and it can create codes for businesses. Before the episode aired, Scan’s app was selling for $1.99 and was ranked #5 among the Utilities app in the Apple App Store and was #150 among all paid apps. Once the Shark Tank episode aired, it jumped to the #1 paid app on the Utilities category and was ranked #25 among all paid apps.
Some of the investors in Scan were not supportive of Gee pitching on “Shark Tank.” Gee said that the investors were worried that the show was too “quirky” and they were worried about the company’s reputation.
Scan did not end up raising the $1 million he was seeking. Kevin O’Leary, one of the judges at the show, was not impressed with the app’s 50 million free app downloads since not much revenue was generated from this number. It is believed that Scan became a paid app between the time that Gee pitched on the show and now. ?Show me the money, not the downloads,? said O?Leary on the show.
Mark Cuban, another judge on the show, said that he believes that QR codes is an outdated technology.
Scan recently added a “scan to pay” feature that lets scanners make a donation or buy digital goods with a couple of taps after scanning the code.