Notehall Net Worth: The $3.7 Million Shark Tank Success Story That Got Away

Notehall is one of those rare Shark Tank stories that didn’t follow the script, and that’s exactly why it became such a remarkable success. Founded by two college students who saw a simple problem and built a clever solution, Notehall turned a $30,000 side project into a multi-million-dollar acquisition. The company’s journey from a dorm room idea to a $3.7 million exit is a testament to the power of knowing when to say no, even to a Shark.

**Notehall’s net worth at the time of its acquisition in June 2011 was approximately $3.7 million** in equity, according to SEC filings. The company was acquired by [Chegg](https://www.chegg.com/), the publicly traded textbook rental and student services platform. Some sources, including Barbara Corcoran herself, have suggested the sale was for as much as $10 million, though the SEC filing confirms the equity portion of the deal was $3.7 million.

Quick Facts

Detail	Information
Company Name	Notehall
Founders	D.J. Stephan, Sean Conway, Justin Miller, Fadi Chalfoun
Founded	2008
Headquarters	San Francisco, California, USA
Industry	Education Technology, E-Commerce
Shark Tank Appearance	Season 1, Episode 8 (October 6, 2009)
Initial Ask	$90,000 for 10% equity
On-Air Deal	$90,000 for 25% equity from Barbara Corcoran
Deal Status	Declined after filming
Acquisition	Chegg (June 2011)
Acquisition Price	Approximately $3.7 million in equity
Net Worth (2026)	Acquired (No longer independent)

What Was Notehall?

Notehall was an online marketplace where college students could buy and sell class notes, study guides, and outlines. The platform operated on a simple yet effective model: students who took comprehensive notes could upload them to Notehall, and students who needed help with their coursework could purchase access to those notes.

The company took a percentage of each transaction, reportedly 50% to 60%, and the student note-seller kept the rest. This created a two-sided marketplace that benefited both diligent students looking to monetize their work and struggling students who needed extra help.

The inspiration for Notehall came from founder Sean Conway’s personal experience. Diagnosed with ADHD, Conway had genuine difficulty keeping comprehensive notes during lectures. He recognized that other students with similar challenges, and even those without, could benefit from access to high-quality, well-organized class notes.

The Shark Tank Pitch

Notehall appeared on Shark Tank Season 1, Episode 8, which aired on October 6, 2009. The founders, D.J. Stephan and Sean Conway, walked into the Tank seeking $90,000 in exchange for 10% equity in their company.

The Traction That Impressed the Sharks

What made Notehall’s pitch so compelling was the traction they had already achieved. At Arizona State University and Kansas State University, 40% of the entire student body had registered for and used the platform. The company had generated $30,000 in revenue from 6,000 paying customers, meaning students were willing to pay real money for access to better notes.

The Sharks were clearly impressed. As Conway explained, their competitors focused on getting paying users, while Notehall had created an efficient way to gain content providers. Without solid content, he argued, any website with this business model was doomed to failure.

The Bidding War

The pitch attracted intense competition among the investors. After a heated bidding process, three Sharks made competing offers:

Barbara Corcoran: $90,000 for 25% equity
Kevin O’Leary: $90,000 for 35% equity
Robert Herjavec: $115,000 for 35% equity

Facing the possibility of leaving without a deal, Conway made a bold promise: that the company would make $24 million in four years, and he said he would bet half the company on it. Kevin O’Leary was impressed by their “blind confidence.”

In the end, Conway and Stephan accepted Barbara Corcoran’s offer of **$90,000 for 25% equity. The deal valued the company at $360,000.

What Happened After Shark Tank: The Deal That Got Away

Declining the Shark

In one of Shark Tank Season 1’s most consequential post-show turns, Stephan and Conway ultimately declined Barbara Corcoran’s investment offer after further due diligence.

Their decision was driven by a competing opportunity: admission to the DreamIT Ventures accelerator program in Philadelphia, one of the most respected early-stage venture programs in the country. The accelerator provided them with mentorship, investor network access, and operational infrastructure to scale Notehall far beyond what a single angel investment would have enabled.

Corcoran later expressed regret, telling Yahoo Finance in 2015: “They swore they wouldn’t shop it around, but they did. And they sold it for $10 million two weeks later, and I was out of the picture.” While her recollection of the timeline was off, the sale happened in June 2011, not two weeks after filming, her frustration was understandable.

Scaling the Business

With DreamIT’s backing and guidance, Stephan and Conway executed a systematic university-by-university rollout. They expanded Notehall to 54 institutions and grew the registered user base to 750,000 students across the country.

At that scale, Notehall became a genuinely compelling acquisition target for the student services industry.

The Chegg Acquisition

In June 2011, Notehall was acquired by Chegg, the publicly traded student services platform known for textbook rentals and academic support tools.

According to SEC filings, Chegg paid **$3.7 million in equity** for Notehall. While Barbara Corcoran claimed the sale was for $10 million, the SEC filing confirms the equity portion of the deal was $3.7 million. Both founders became millionaires as a result of the acquisition, and Chegg hired them after the sale.

The Notehall brand was later integrated into Chegg’s Homework Help platform, and the company ceased to operate as an independent entity.

Controversies and Criticism

Notehall was not without its critics. Several professors and university officials criticized the platform for monetizing studying and for potentially profiting off of intellectual property.

Some universities issued cease-and-desist letters, citing potential copyright violations. Despite these concerns, Notehall and Chegg continued to sell notes to students, offering material from classes at hundreds of universities and community colleges.

Interesting Facts About Notehall

Notehall was founded in 2008 at the University of Arizona by Sean Conway, Justin Miller, D.J. Stephan, and Fadi Chalfoun.
Within 8 months, 40% of students at the University of Arizona were using Notehall.
The founders were college students when they appeared on Shark Tank.
Sean Conway’s ADHD diagnosis inspired the creation of Notehall.
They declined a Shark deal and joined DreamIT Ventures instead.
Notehall expanded to 54 universities and reached 750,000 students before being acquired.
The company was acquired by Chegg in June 2011 for $3.7 million in equity.
Both founders became millionaires from the sale.
Barbara Corcoran regretted the deal falling through and claimed the sale was for $10 million.
Notehall appeared on Shark Tank again during Season 3 in 2012 to provide an update about the sale.

Frequently Asked Questions

What is Notehall?

Notehall was an online marketplace where college students could buy and sell class notes, study guides, and outlines.

What was Notehall’s net worth?

At the time of its acquisition in June 2011, Notehall was valued at approximately $3.7 million in equity, according to SEC filings.

When did Notehall appear on Shark Tank?

Notehall appeared on Shark Tank Season 1, Episode 8, which aired on October 6, 2009.

Did Notehall accept a deal on Shark Tank?

The founders accepted an on-air deal from Barbara Corcoran for $90,000 for 25% equity, but they later declined the deal after the show.

Why did Notehall decline Barbara Corcoran’s deal?

They declined the deal to join the DreamIT Ventures accelerator program, which they believed offered better mentorship, investor access, and operational infrastructure for scaling.

Who bought Notehall?

Notehall was acquired by Chegg, the textbook rental and student services platform, in June 2011.

How much did Chegg pay for Notehall?

According to SEC filings, Chegg paid $3.7 million in equity for Notehall.

Are the Notehall founders millionaires?

Yes, both founders became millionaires as a result of the acquisition.

Does Notehall still exist?

Notehall no longer exists as an independent company. Its brand was integrated into Chegg’s Homework Help platform after the acquisition.

What happened to the Notehall founders after the sale?

After the sale, Chegg hired Stephan and Conway. Conway went on to found and lead Livly as CEO, while Stephan became Chief Product Officer at Vantaca, LLC.

Conclusion

Notehall’s journey from a dorm room idea to a multi-million dollar acquisition is one of the most compelling success stories to emerge from Shark Tank’s first season. Founded by college students who saw a simple problem and built a clever solution, the company demonstrated remarkable traction before even appearing on the show.

The founders’ decision to decline Barbara Corcoran’s offer was a calculated risk that ultimately paid off. By joining DreamIT Ventures instead, they gained access to the mentorship, network, and infrastructure needed to scale Notehall to 54 universities and 750,000 students. The $3.7 million acquisition by Chegg made both founders millionaires and validated their bold decision to bet on themselves.

Notehall’s story is a reminder that sometimes the best deal is the one you walk away from. While Barbara Corcoran may have regretted losing out on the investment, the founders’ decision to trust their instincts and pursue a different path proved to be the right one. Today, Notehall’s legacy lives on as part of Chegg’s platform, continuing to help students access the study materials they need to succeed.

Notehall was not just a Shark Tank company; it was a testament to the power of perseverance, strategic thinking, and the courage to say no, even to a Shark.

Notehall Net Worth: $3.7M Shark Tank Exit to Chegg