Shark Tank Global - "I'm Sorry But You're OUT!" | Shark Tank US | Shark Tank Global
Tanya Vancourt, CEO of Goal Setter, presents her company to potential investors, seeking $200,000 for a 4% equity stake. Goal Setter aims to transform gift-giving for children by allowing family and friends to contribute money towards a child's savings goals instead of buying toys. The platform sets up FDIC-insured savings accounts in the parent's name, where kids can save for various goals like college or extracurricular activities. Statistics show that children with savings accounts are more likely to attend college and own stocks as adults. The company generates revenue through transaction fees, monthly charges for savings features, and a percentage of assets under management. Despite the innovative concept, the investors express concerns about customer acquisition costs and the complexity of dealing with banks. Kevin O'Leary offers a deal for 25% equity, citing the challenges of navigating bank compliance, but Tanya declines, confident in her company's progress and partnerships.
Key Points:
- Goal Setter allows kids to save for meaningful goals instead of receiving toys.
- The platform sets up FDIC-insured accounts in the parent's name for easy management.
- Revenue is generated through transaction fees, monthly charges, and asset management fees.
- Children with savings accounts are more likely to attend college and own stocks.
- Investors express concerns about customer acquisition costs and bank compliance.
Details:
1. 🎯 Introduction to Goal Setter
- Tanya Vancourt is the CEO and founder of Goal Setter, based in Brooklyn, New York.
- She is seeking $200,000 in exchange for a 4% equity stake in the company.
- Goal Setter is a financial literacy platform aimed at helping families and children save money and learn about financial management.
- The platform offers tools for goal setting, saving, and gifting, making financial education accessible and engaging for young users.
2. 💡 The Problem and Solution
2.1. The Problem
2.2. The Solution
3. 🔍 How Goal Setter Works and Account Setup
3.1. Goal Setter Overview
3.2. Account Setup Process
4. 💰 Revenue Streams and Financials
- The company charges $1 for every goal card given, with a 5-cent transaction fee deducted, providing a direct revenue stream from user transactions.
- Parents are charged $1 per month per child for access to savings features, creating a recurring revenue model that capitalizes on family engagement.
- The company receives 100 basis points of assets under management from its partner bank, aligning its financial success with the growth of managed assets.
5. 📈 Investor Reactions and Challenges
5.1. Investor Reactions
5.2. Challenges Faced
6. 🛠 Feedback and Suggestions
- Teaching financial intelligence to young children is appreciated, but the current method may not be engaging for them, as evidenced by a parent's anecdote about their child's disinterest in emails.
- Testing with younger kids shows that they have many questions about what gifts to receive, indicating a need for more direct and simple financial tools for children.
- Simplifying the process of opening a bank account for children could be a viable business opportunity, as it would reduce overhead and meet a clear need expressed by parents.
- The current approach may be perceived as overly complicated, suggesting a need for simplification to better align with parental feedback and expectations.
7. 💼 Negotiations and Conclusion
- An aggressive offer of $200,000 for 25% equity was made, highlighting the investor's belief in the mission but also the challenges of working with banks.
- The investor emphasized the complexity of bank compliance, likening it to an army, and the value of their experience in navigating these challenges.
- The company is part of two top fintech accelerator programs and has high-profile advisors, including the vice chairman of Morgan Stanley, indicating strong industry connections.
- A counteroffer was made to double the investment, but it was declined, showing the negotiation's intensity and the investor's confidence in their value.
- The company is three months away from achieving platform compliance, indicating progress towards a critical milestone.
- The negotiation concluded with the investor withdrawing, citing their value and experience as too significant for the deal.