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Matt and Melissa Hammersley appeared on Shark Tank season 9 episode 6, which aired on October 29, 2017. They demonstrated their voice-activated storytelling app, Novel Effect, and sought a $500,000 investment in exchange for 10% equity. Matt explained that Novel Effect adds interactive elements to classic children's books through their app. He further said that when users read aloud, the app triggers sound effects and music.
The app's sound effects are crafted by professionals from the video game, movie, and television industries. The founders created Novel Effect to make reading more engaging for their children. Matt and Melissa revealed that their company had secured $620,000 in funding and was valued at $5 million at the time. However, the company's lack of revenue raised concerns among the sharks.
Mark Cuban and Daymond John dropped out, citing concerns about customer acquisition. Kevin O'Leary shared his experience with a similar business and also backed out. Lori Greiner saw potential in Novel Effect and offered $500,000 for 20% equity. As Sara Blakely decided to join in the deal with Lori Greiner, the experienced Shark Tank investor, Lori pitched to go for a sole deal with her.
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"As I think about it, you know, I could offer to go in with Sara, but the problem with that is that you don't wanna give away a lot of equity," stated the Shark Tank investor Lori.
Matt countered with $500,000 for 12.5%, and Lori eventually agreed to do a deal at $500,000 for 15% equity on Shark Tank.
Journey of Novel Effect before and after Shark Tank
Before the birth of their child, Matt and Melissa Hammersley's friends hosted a baby shower with a literary theme. The guests gave them children's books, and one friend read a story with sound effects. Matt and Melissa were inspired by how the children reacted to the interactive storytelling.
They realized that if parents could make reading more engaging, children would develop a love for it. Matt formulated this idea over a few months. He and Melissa then launched Novel Effect in 2015, combining traditional reading with voice-recognition technology. The couple sold their home and moved to Seattle, Washington, to pursue this venture.
They partnered with Amazon and received funding from the Alexa Fund, which supports voice-recognition innovations. The duo applied to appear on Shark Tank but were initially unsuccessful. However, after promoting Novel Effect at the South by Southwest festival, they were invited to pitch their idea to the Sharks in 2017.
After appearing on Shark Tank, the founders continued their partnership with Amazon. They joined the first Techstars Alexa Accelerator program. The Novel Effect app remained available as a free download, and the company introduced the Novel Effect Book Club, a subscription service delivering supported books monthly.
Initially, the app was only available for iOS, but an Android version was released in 2018. Novel Effect's soundscapes library grew to over 150 titles. In May 2018, the company announced $3 million in additional funding. After their Shark Tank appearance, the app saw over 50,000 downloads. Novel Effect won a Webby Award for Best Integrated Mobile Experience in 2018.
The company reportedly did not finalize a deal with Lori Greiner. According to the brand's website, Novel Effect expanded its reach with an Android app in 2019 and garnered $1.2 million in funding. It partnered with the Jim Henson Company in 2020, adding soundscapes to Muppet-themed children's books.
This partnership led to the development of voice-interactive television shows. Novel Effect has been featured in Forbes Magazine and on The Today Show. The company's library now includes over 750 titles. In February 2023, Novel Effect released a Chromebook-compatible version of its app, increasing accessibility for classroom use.
The company's website is still active, with products such as book activities, stickers, gift bundles, and speakers listed on it. The brand also has an account on Instagram and Facebook, where it has 36.4K and 6.2K followers, respectively.
Shark Tank is currently airing season 16 on ABC.
