Gift cards are an easy birthday gift to buy, but they often sit unused. Kwame Kuadey created the Gift Card Rescue Marketplace so people could sell them instead of throwing them away. Kuadey appeared on Shark Tank Season 1 and struck a deal with Robert Herjavec and Kevin O’Leary. The company later shut down and is valued at $0 as of 2024.
Kwame Kuadey’s Background
Originally from Ghana, Kwame Kudayi immigrated to Washington to expand his horizons. He studied economics at Middlebury College and received an MBA from the Johns Hopkins University Carey School of Business.
He spent seven years in management at Citigroup and in 2014 became a member of the Baltimore chapter of EO, an influential Maryland business network, where he now serves as president.
Kwame then served as an adjunct professor at Johns Hopkins University, teaching entrepreneurial finance. In 2018, he founded Thrive Company, a business consulting firm dedicated to helping local businesses develop branding and marketing strategies.
Start a Gift Card Rescue Organization
The Ghanaian entrepreneur started his gift card exchange business while studying for his MBA. He was given a project by the school and wanted to start a company that helped people recycle unwanted gift cards.
Kuadey developed GiftCardRescue.com as a marketplace where people can sell their gift cards and other users can buy them for a fraction of the original price.
The company launched in 2008 and got off to a good start. Within a few months, the company was bringing in more than $55,000 in revenue. Amazon saw its potential, and a representative contacted Kwame about working with him.
Shark Tank Appearance
Kwame Kuadey was one of the first entrepreneurs to get the chance to pitch his startup on Shark Tank in 2009. He was looking to raise $150,000 in exchange for 30% equity.
With his MBA background, Kwame stood out among the early contestants. Some of the startups that appear on the show are not worth investing in, and the valuations are often high. Because contestants must provide equity to the production team, it is difficult for “Shark Tank” to attract high-quality companies.
Kevin O’Leary was the first to make an offer, but he wanted $150,000 for 50% of the shares. At the time, the sharks’ offer was extremely greedy compared to today. When Kwame pushed back, Herjavec proposed to join forces with Kevin and invest $200,000 for half of the company. After careful consideration, the entrepreneur accepted the deal.
After Shark Tank
Gift Card Rescue gained fame after the show aired on Shark Tank. However, the deal with Kevin and Robert was not done, and revenue quickly soared from $250,000 to $2 million!
Regardless, Gift Card Rescue went on to become one of the fastest-growing startups in the U.S. In 2013, they were named to the Inc. 5000 list, a position they have held for four consecutive years. According to BizJournals.com, the company’s annual revenue grew to $10 million.
Despite rapid growth, Gift Card Rescue struggled to keep up with demand and customer complaints mounted. In 2016, a lender froze their bank account, and Gift Card Rescue collapsed overnight. Before the closure, they had an average rating of 2.4 stars out of 1,837 reviews on Trustpilot.
The closure came as a surprise to employees and customers, as the business seemed healthy. Gift Card Rescue expanded quickly, but was unable to generate sufficient cash flow. Today, GiftCardRescue.com is still active, as someone has purchased the domain. Currently, Kwame Kuadey is the CEO and founder of Pioneer Branding.
Categories: Shark Tank
Source: svlsf.edu.vn