Brightwheel – Childcare Management Software
DEAL
EPISODE SUMMARY
🕓 Air Date: April 29, 2016
Asking For:
$400,000 for 4%
Investor:
Mark Cuban, Chris Sacca (50/50)
Deal:
$600,000 for 6.67%
PRODUCT SUMMARY
Brightwheel is a mobile app for preschools, daycares, and families, revolutionizing early education by connecting teachers, parents, and children in a seamless and efficient way.
WATCH HERE
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Background Story
Dave Vasen, the founder and CEO of Brightwheel, grew up as a first-generation American with parents who immigrated from South America. He learned the value of a strong work ethic and education from his parents. While working in education technology for big companies like Amazon and Cisco, Dave felt disconnected from his daughter Serena’s early education.
This led him to create Brightwheel, a unique product that focuses on early education, connecting teachers, parents, and children. His goal is to make a significant impact on early childhood development and bridge the communication gap between parents and educators. The company is based in San Francisco, reflecting Dave’s passion for leveraging technology to improve education.
The Product
Dave Vasen, the founder and CEO of Brightwheel, grew up as a first-generation American with parents who immigrated from South America. He learned the value of a strong work ethic and education from his parents. While working in education technology for big companies like Amazon and Cisco, Dave felt disconnected from his daughter Serena’s early education.
This led him to create Brightwheel, a unique product that focuses on early education, connecting teachers, parents, and children. His goal is to make a significant impact on early childhood development and bridge the communication gap between parents and educators. The pricing model, ranging from $40 to $200 per month, caters to the diverse budget constraints of different educational institutions.
How It Went
The company’s position before Shark Tank
Brightwheel started with a pilot in 2014, involving 10 schools. After refining the product based on feedback, they officially launched in June, and their user base quickly grew to 2,500 schools across all states. The company raised a seed round of $2.2 million at an $8.2 million valuation. With this initial funding, they have scaled their operations, showing impressive growth with an average of 40 to 50 new schools joining the platform daily.
The company’s target market includes a wide range of early education providers, from small in-home daycares to larger preschool chains, reflecting the versatility of their platform. Brightwheel’s focus on education and efficient communication has positioned it as a valuable tool for teachers and parents alike. They have successfully built a brand and user base within a short period, and the positive reception is evident in the rapid increase in the number of schools using their platform.
The Negotiations:
Dave Vasen entered the Shark Tank seeking a $400,000 investment for a 4% equity stake in Brightwheel. Mark Cuban and Chris Sacca made a joint offer, proposing $300,000 each at a $9 million valuation, providing a total investment of $600,000. This offer exceeded the initial ask but introduced a higher valuation. Kevin O’Leary also made an offer, suggesting $400,000 for a 10% equity stake, emphasizing the value he brings to the education space.
However, Mark Cuban and Chris Sacca’s offer was ultimately accepted by Dave Vasen, closing the deal at the $9 million valuation. The negotiation included discussions on the company’s rapid growth, the value proposition for educators and parents, and the potential for advertising on the platform. While the negotiations became intense at times, Mark Cuban and Chris Sacca’s joint offer stood out as the winning combination for Brightwheel.
