{"id":42705,"date":"2023-10-20T15:23:10","date_gmt":"2023-10-20T15:23:10","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/melbourne-entrepreneurs-score-200000-shark-tank-deal-with-naomi-simson-startupsmart\/"},"modified":"2023-10-20T15:23:10","modified_gmt":"2023-10-20T15:23:10","slug":"melbourne-entrepreneurs-score-200000-shark-tank-deal-with-naomi-simson-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/melbourne-entrepreneurs-score-200000-shark-tank-deal-with-naomi-simson-startupsmart\/","title":{"rendered":"Melbourne entrepreneurs score $200,000 Shark Tank deal with Naomi Simson – StartupSmart"},"content":{"rendered":"
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Two Ukrainians and a Russian walk into a room.<\/p>\n

No, it\u2019s not the beginning of a bad joke, but the reality on Thursday night\u2019s episode of Channel Ten\u2019s Shark Tank<\/em>.<\/p>\n

Dmitry Levin, Dennis Volodomanov and Leon Kosher are the founders of KISA, an easy to use phone aimed at the elderly and young children.<\/p>\n

They appeared in the tank last night, seeking an investment of $200,000 for a 5% equity stake in the business.<\/p>\n

After also receiving offers from Janine Allis and Andrew Banks, the team accepted an offer from Naomi Simson for $100,000 investment for 10% of the business, plus a $100,000 loan.<\/p>\n

KISA is a phone that eschews the typically touchscreen interface of a modern phone, instead opting for an entirely tactile, button-based interface.<\/p>\n

The product is primarily aimed at older users, who want simplicity, and might find touch screens confusing and hard to use.<\/p>\n

On ordering the product, the consumer can pre-select up to 10 contacts to be displayed on each button, either with a name or a photo.<\/p>\n

Speaking to SmartCompany<\/em>, Levin said the inspiration for the phone came years ago, when his wife\u2019s grandfather got lost on a walk and was uncontactable.<\/p>\n

\u201cIn 2009, my wife\u2019s grandfather went for a walk and got lost. Even through he had a smartphone, he was unable to properly use it and there was nothing we could do,\u201d Levin says.<\/p>\n

\u201cThankfully a good Samaritan found him and gave him a lift home.\u201d<\/p>\n

After finding no phones on the market that did what Levin wanted, he teamed up with Volodomanov and Kosher to create the KISA phone, which they launched four years later.<\/p>\n

\u201cStarting up, it was a very steep learning curve, we were doing something no one had really done before,\u201d Levin says.<\/p>\n

\u201cPeople didn\u2019t understand what \u2018simple\u2019 really meant, and we had a lot of people asking us why we didn\u2019t just put a screen on the phone.\u201d<\/p>\n

The team appeared on Shark Tank with the first edition of the phone, and in the time since, KISA has rolled out a second edition with more features.<\/p>\n

Levin says the second edition is \u201cmassively improved\u201d with GPS functions and the ability for it to be controlled by family members remotely.<\/p>\n

\u201cSay if your grandparent has turned the volume all the way up and can\u2019t turn it down, you can now log in on our website and turn it down for them, from anywhere in the world,\u201d Levin says.<\/p>\n

\u201cThe GPS can help if they get lost, or as a way to keep track of your kids during the day.\u201d<\/p>\n

Although the KISA phone may look simple, Levin assures its looks are deceiving, as under the simple exterior, the guts of the product are \u201call smartphone\u201d.<\/p>\n

The team moved away from the basic chipset used in their first model, opting for an Android chipset instead.<\/p>\n

\u201cThe new KISA is essentially just like any Android phone, except without a screen,\u201d Levin says.<\/p>\n

\u201cWe needed a chipset that was capable of doing everything we wanted it to do.\u201d<\/p>\n

The team of three are all split up into different roles, with Levin managing sales, Kosher the \u201cnumbers man\u201d, and Volodomanov developing the device itself.<\/p>\n

Levin says having the two other founders with him in the tank was essential, saying, \u201cI would not have been successful by myself.\u201d<\/p>\n

\u201cWe prepared so much that when we walked in there was nothing that could go wrong, [Kosher] knows his figures,\u201d Levin says.<\/p>\n

\u201cYou have to have bright people around you to succeed.\u201d<\/p>\n

Levin says the starting point for their pitch was not what they expected to get from the sharks, saying businesses should \u201cnever expect to get what you ask for initially\u201d.<\/p>\n

Simson\u2019s offer hit the nail right on the head, according to Levin, saying it was as if she knew exactly what the company was looking for.<\/p>\n

The deal made is out of due diligence and is well underway, with Simson having a direct involvement with the business.<\/p>\n

Levin says the second model of the phone is only possible because of Shark Tank, and working with Simson has been \u201cincredible.\u201d<\/p>\n

\u201cI can\u2019t imagine how people do deals with multiple sharks, everyone has their own personality and agenda, I think I would have found it very difficult,\u201d Levin says.<\/p>\n

As for the future of KISA, Levin says overseas expansion is definitely on the cards.<\/p>\n

\u201cWe\u2019ve got a KISA phone in every continent bar Antarctica, and we\u2019re working on that,\u201d he says.<\/p>\n

\u201cThe most obvious areas for expansion are the US and Europe, but we\u2019re approaching that with caution.<\/p>\n

\u201cThere\u2019s a lot of complexity involved, and we want to make sure we\u2019re providing a holistic solution.\u201d<\/p>\n

For other businesses hoping to swim with the sharks, Levin says you should always focus on what you know.<\/p>\n

\u201cDo your research, you can never do too much research, and you can never have too many contacts.\u201d<\/p>\n

Also walking out of the tank with a deal last night was drinks brand Sofi Spritz, which made a split deal with Steve Baxter and Glen Richards of $130,000 for 10% equity.<\/p>\n

This article was first published by SmartCompany.<\/em><\/p>\n

Follow StartupSmart on<\/em> Facebook,<\/em> Twitter and <\/em>LinkedIn<\/em>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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