Wavo‘s founder Conor Clarke said “thanks, but no thanks,” this week on an exciting episode of the popular CBC show, Dragons’ Den, during it’s “Next Gen Den” segment.
Clarke, who founded the company prior to joining the FounderFuel accelerator programs’s inaugural cohort in 2011, pitched investors Harley Finkelstein (Shopify), Michael Hyatt (Bluecat) and Nicole Verkindt (OMX).
Clarke tried to wow the money-spenders with a $100,000 ask for 1.6 per cent of Wavo, at a valuation of $6,250,000.
Wavo calls itself the world’s leading music promotion tool. It’s engagement tool for musicians, Wavo Boost, is recommended on the web’s “most respected music publications.”
Clarke explained to the Dragons that millennials get their music through being connected to mobile devices 24/7. Wavo helps artists shift their marketing budget from more traditional media windows to online, which can “caputure this fragmented but highly engaged audience” with superior data and targeting.
Wavo can get artist’s tracks on partner sites that people “would kill to get their music on,” said Clarke, through native, natural-looking ads.
The CEO said his startup’s revenue was $50,000 in October, 2015 and $60,000 in November, getting the startup past its burn rate since it started monetizing in January.
“You’re giving musicians the tools that typically only the largest artists could afford, but you’re giving them to the smallest. And that is democratization,” said Finkelstein, who offered Clarke $100,000 for five per cent of Wavo. Clarke couldn’t justify it given the company’s growth, and countered with two per cent. Finkelstein felt he wouldn’t make enough money on his investment and pulled out.
“That’s not going to stop us,” said Clarke after the show. “We’re going to continue growing Wavo into one of the biggest marketing platforms in the world.”