Classroom Jams
DEAL
EPISODE SUMMARY
🕓 Air Date: August 16, 2009
Asking For:
$250,000 for 10%
Investor:
Kevin O'Leary, Barbara Corcoran, Kevin Harrington, Robert Herjavec, Daymond John (5)
Deal:
$250,000 for 100% equity + 5% royalty in perpetuity
PRODUCT SUMMARY
Classroom Jams is an educational record label and publishing house aimed at revolutionizing the way students engage with literature through musical adaptations of classic texts like Shakespeare's works.
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Background Story
Marc Furigay, a dedicated high school English teacher based in Chicago, Illinois, embarked on a mission to transform the way literature is taught in schools. With eight years of teaching experience, Marc observed the challenges students faced in engaging with classic texts, particularly the works of Shakespeare. Frustrated by the lack of enthusiasm among his students, Marc was determined to find a solution that would make literature more accessible and enjoyable.
Inspired by a student’s plea for material they could relate to, Marc had a revelation: music could be the key to unlocking students’ interest in classic literature. Drawing on his passion for both teaching and music, Marc set out to create Classroom Jams, an innovative educational initiative that merges literature with contemporary music. Using his expertise in both English literature and music composition, Marc began crafting musical adaptations of classic texts, starting with Shakespeare’s plays. These adaptations, featuring catchy tunes and modern lyrics, aimed to distill the essence of the original works while making them more relatable to today’s students.
Located in the heart of Chicago, Classroom Jams became Marc’s labor of love, driven by his desire to inspire a new generation of readers and thinkers. With his background in teaching and his creative approach to curriculum development, Marc embarked on a journey to revolutionize the way literature is taught in classrooms across the country. Through Classroom Jams, Marc sought to empower educators with innovative tools that fostered a deeper appreciation for literature while engaging students in a way that traditional teaching methods could not achieve.
The Product
Classroom Jams offers a unique approach to teaching literature through musical adaptations of classic texts, with a primary focus on works like Shakespeare’s plays. Each Classroom Jams set includes a collection of songs that retell and analyze the themes, characters, and plots of the original texts in a modern musical format.
These songs are composed and performed by Marc Furigay, the founder of Classroom Jams, ensuring authenticity and quality. The product works by providing educators with a dynamic tool to engage students in literature through music. Teachers can incorporate Classroom Jams into their curriculum to enhance comprehension, spark discussions, and foster a deeper understanding of literary works.
The benefits of Classroom Jams are numerous. It helps make complex literary concepts more accessible and relatable to students, cultivates a love for literature through music, and encourages active participation and critical thinking in the classroom.
Classroom Jams sets can be purchased directly from the company’s website or through educational supply retailers. Each set typically includes CDs with the songs, as well as a teacher’s guide for lesson planning and implementation. Pricing for a Classroom Jams class set is $499, providing educators with a comprehensive and effective resource for teaching literature in an engaging and innovative way.
How It Went
The company’s position before Shark Tank
Classroom Jams has demonstrated promising growth and a strong position in the educational market since its inception. With its innovative approach to teaching literature through music, the company has garnered attention from educators nationwide, positioning itself as a leader in curriculum enrichment. The company’s primary partners include educational institutions such as schools, school districts, and educational supply retailers. Classroom Jams has established relationships with wholesalers who distribute its products to a wide network of schools and educators across the country, ensuring broad availability and accessibility.
The company’s customers primarily consist of teachers and schools seeking effective teaching tools to engage students in literature education. By addressing the need for innovative and engaging educational resources, Classroom Jams has cultivated a loyal customer base and built a reputation for quality and effectiveness in the education sector. In terms of funding, Classroom Jams initially received an investment from the Sharks on the television show “Shark Tank,” providing the company with the capital needed to launch and scale its operations. With the infusion of funds, Classroom Jams has been able to invest in product development, marketing initiatives, and expanding its distribution network.
Classroom Jams has seen positive financial performance, with growing revenue streams and a healthy bottom line. The company’s available capital has been reinvested into the business to support ongoing growth and expansion efforts. Currently, Classroom Jams is structured as a privately held company, with Marc Furigay as the founder and CEO. The company operates with a dedicated team of professionals focused on product development, marketing, sales, and customer support, all working towards the shared goal of transforming literature education through music.
The Negotiations:
In the negotiations on Shark Tank, Marc Furigay, the founder of Classroom Jams, presented his innovative educational concept to the Sharks, seeking $250,000 for a 10% stake in the company. Initially, Robert Herjavec made an offer to invest the full amount in exchange for 100% ownership of Classroom Jams, with Marc having the option to buy back 49% with profits made from the business. However, Robert later revised his offer, proposing a 51% ownership for himself and leaving Marc with 49% without the need to repurchase equity.
Other Sharks expressed concerns about the lack of equity ownership for Marc and the potential for dilution of his stake in the company. Despite Robert’s revised offer, Marc rejected it, expressing a desire to have multiple business partners rather than ceding majority control to one investor. The negotiations intensified as the Sharks debated the terms of the deal, with Kevin O’Leary advocating for a simpler arrangement with a royalty structure.
Ultimately, all five Sharks came together to make a joint offer, proposing to fund a new company with $250,000 and offering Marc a 5% royalty for life on sales, with the option to use his royalty stream to acquire equity among the Sharks. After some deliberation, Marc accepted the offer, recognizing the value of having multiple business partners and the opportunity to scale Classroom Jams with the support of the Sharks. The negotiations concluded with a successful deal that provided Classroom Jams with the funding and expertise needed to grow and thrive in the education market.
