Is Autio a Credible App or Just a Feature? | Shark Tank US | Shark Tank Global

Summary

In this Shark Tank pitch, Woody Sears introduces AO, a mobile app designed to enhance road trips by telling stories about the locations you visit using geolocation technology. He seeks $1 million for 5% equity in the company. AO offers over 9,000 narrated stories across the U.S. that play automatically based on the user's location, providing a fun and educational alternative to screen time. While the Sharks are skeptical, with concerns over competition from major players like Google Maps, Kevin O’Leary ultimately offers $1 million for 10% equity, leaving Woody to decide on the deal.

Takeaways

• 😀 Woody Sears is a travel enthusiast from Santa Barbara, California, seeking $1 million in exchange for 5% equity in his company, AO.
• 😀 AO is a mobile audio entertainment app for travel that tells stories about landmarks, cities, and locations based on your geolocation.
• 😀 The app offers an immersive experience with 9,000+ stories narrated by professional voices like Kevin Coster, Phil Jackson, and John Lithgow.
• 😀 The app is free to download and comes with five free stories. Afterward, users can pay $36 per year for unlimited streaming.
• 😀 AO works without Wi-Fi by using GPS to trigger stories, and users can download stories in advance for offline use in remote areas.
• 😀 Woody has a strong background in software, having previously founded iStoryTime, a library of narrated storybooks for iPhone.
• 😀 AO has already raised over $3 million and has notable investors such as AAA and a large RV retailer.
• 😀 The app has 15,000 paid members, 210,000 registered accounts, and over half a million downloads, with a 50% average renewal rate.
• 😀 Some investors, like Mark Cuban, are not interested due to competition from free services like Google Maps, while others are skeptical about consumer willingness to pay for such a service.
• 😀 Kevin O'Leary (Mr. Wonderful) ultimately offers $1 million for 15% equity, citing his large follower base and influence as valuable for the app's growth.
• 😀 Despite intense negotiations, Woody is unable to finalize the deal with Mr. Wonderful, sticking with a lower equity offer and prioritizing the company's long-term success.

Q & A

What is the main purpose of AO, the app introduced by Woody Sears?

AO is a mobile audio entertainment app designed for road trips, offering stories about places, landmarks, and cities that users drive by. The stories are triggered by the user's location using geolocation technology.

How does AO work in terms of delivering stories to users?

Users download the AO app, which is free to download and comes with five free stories. Once the user enables location services and notifications, the app automatically plays stories based on the user's location, without needing an active internet connection.

What makes the stories in AO unique?

The stories are narrated by professional narrators, including famous voices like Kevin Cern, Phil Jackson, and John Lithgow. They span over 9,000 locations across the US, offering historical, cultural, and geographical insights.

What happens if a user runs out of the five free stories in the AO app?

If a user exhausts the five free stories, they can purchase an unlimited streaming plan for $36 a year to access more stories.

How does AO handle users in remote areas without Wi-Fi or cellular service?

AO allows users to download stories in advance so that they can still listen to them in areas without Wi-Fi or cellular coverage, as the stories are triggered by GPS.

What is Woody Sears' background before starting AO?

Woody Sears has spent 19 years in software and mobile development. His previous company, I Story Time, created the first library of narrated storybooks for the iPhone, which led to over 200 apps, 14 million downloads, and an acquisition.

Why is Woody Sears seeking investment from the sharks?

Woody seeks investment to expand AO, particularly in reaching a wider audience and increasing brand awareness. He wants partners who are passionate about the mission and can help get the word out.

How much revenue has AO generated so far, and what is the company's growth trajectory?

AO has generated $700,000 this year and $210,000 last year, with a projected annual run rate of $2 million. The company has also seen over 15,000 paid members and half a million downloads.

What is the customer retention rate for AO's subscription service?

AO has a renewal rate of 70% for its earliest subscribers, with an average attrition rate of 50%, which is typical for consumer subscription services.

What was the sharks' general reaction to the business during the pitch?

The sharks were initially skeptical about the valuation and market demand for AO. However, Kevin O'Leary showed interest, ultimately offering $1 million for 15% equity. After negotiation, Woody successfully convinced Kevin to lower the offer to 10%, though the deal wasn't finalized.