SnapSaves was created by Buytopia, which has a deal-of-the-day business model similar to Groupon. Started by Michele Romanow and her partners in Buytopia, the idea was to let shoppers snap a picture of their grocery receipt using the app.
Romanow started pouring more than $100,000 per month into SnapSaves, and within six months had a product she could take to market. The company was a quick hit with consumers and advertisers, and within a year of launch, Romanow was entertaining venture capital investment offers which implied a whopping $25 million valuation for the young company.
That’s when Groupon called and said they wanted to buy SnapSaves outright.
Romanow, who now stars as an investor on Dragon’s Den (the Canadian version of the hit show Shark Tank), negotiated hard with Groupon and got them to double their offer from their first term sheet, which is when Romanow decided to sell.
In this episode, you’ll learn:
- What M&A bankers call a “tech and team” deal.
- The three currencies public companies use to buy businesses.
- What Romanow looks for when investing in a company on Dragon’s Den.
- How to use customer cohorts to track and boost the value of your company.
- The difference between a term sheet and an LOI.
What’s Your ‘Unfair Right to Win’?
Romanow has evolved from an entrepreneur into an investor and now looks to bet on companies with what she calls “an unfair right to win”, which is what we call your Monopoly Control. We’ll help you figure out your Monopoly Control in Module 6 of The Value Builder System™—complete Module 1 for free by completing the Value Builder questionnaire now.
About Michele Romanow
“Dragon”, CBC Dragons’ Den | Co-Founder, Clearbanc
Michele Romanow is an engineer and a serial entrepreneur who started three companies before her 28th birthday. The newest (and youngest ever) entrepreneur to join CBC’s hit show Dragons’ Den, Michele is the co-founder of e-commerce platforms Buytopia.ca and SnapSaves (acquired by Groupon), which have saved millions of users hundreds of millions of dollars. Ranked in WXN’s “100 Most Powerful in Canada” and listed as the only Canadian on Forbes’ “Millennial on a Mission” list. Her current venture Clearbanc is offering financial services for freelancers and entrepreneurs.
Buytopia ranked the #3 on the Profit Hot 50 list of fastest growing companies, #1 on Chatelaine’s W100 list of fastest growing companies and was a finalist for the EY Entrepreneur of the Year award and the RBC Canadian Women Entrepreneur Awards. Michele was previously the Director of Strategy for Sears. Michele holds an engineering degree and an MBA from Queen’s University where she received the Queen’s Tricolour.
Michele is a director on the board of Vail Resorts (NYSE: MTN), Shad Valley and Freshii.
Do You Know An Entrepreneur With A Story To Tell?
We’re constantly on the prowl for interesting stories from owners who have sold their businesses. We look for owners who have sold a business that was generating $1 million or more in revenue, who are willing to share their story candidly with our community. Forbes ranked Built to Sell Radio one of their top 10 podcasts for entrepreneurs and we have more than 100,000 downloads, so your story will get shared with a great community of like-minded owners. Nominate yourself or someone you know today.
At Built to Sell we’re all about shifting the balance of power from the buyer to the seller. If you support our mission, please write a review on iTunes—and if you have any comments or questions you can find us on Twitter and Facebook. Tune in every Wednesday for another episode of #BuiltToSell Radio with John Warrillow.
Planning to get some experience before starting a business? Here’s why you should start your business now.
In the early 2000s, Carl Gould gained notoriety in New Jersey for building upscale modular and log homes under the banner Outdoor Imaging. Gould invested heavily in growing his reputation in the New Jersey market.
What’s Your Business Worth?
Take the 13-minute survey and get your Value Builder Score
The Value Builder Score was inspired by the book, Built to Sell. It was created to help business owners like you build more valuable companies. Join more than 25,000 entrepreneurs by getting your free Value Builder Score, and find out how valuable your company really is.
Get Your Score Now It’s free and 100% confidential.