Codi Storytelling Robot
DEAL
EPISODE SUMMARY
🕓 Air Date: December 11, 2020
Asking For:
$500,000 for 10%
Investor:
Robert Herjavec
Deal:
$500,000 for 25%
PRODUCT SUMMARY
Pillar Learning has created Codi, an educational storytelling robot designed for children aged 1 to 7, with a library of 130 stories, 100 songs, and interactive features to support social and emotional learning.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
The founders of Pillar Learning, Dayu, Chris, and William, united to tackle the issue of excessive screen time and the need for quality content for young children. With a shared belief in the potential of social robots to positively engage kids, they created Codi as a solution.
Dayu brought a strong technological background, Chris had extensive experience in toy design, and William contributed an educational perspective to the team. Their collective expertise and shared vision culminated in the development of Codi.
The Product
Codi is an innovative storytelling robot that leverages modern smart-home technology to captivate and educate children. It boasts a diverse library of 130 stories, a repertoire of 100 songs, and the ability to respond to children’s simple questions.
Parents have complete control and monitoring capabilities through a dedicated mobile app. This interactive and educational robot is specifically designed for children aged 1 to 7, offering a screen-free alternative that fosters engagement and learning.
How It Went
The company’s position before Shark Tank
Pillar Learning had achieved notable sales figures, with approximately 2,500 units sold, resulting in $260,000 in revenue. Their sales efforts were concentrated on their website and Amazon, with operations commencing in November of the previous year and the first customer deliveries in December, aligning with the holiday season.
They had effectively reached a broad audience of 3 million people through targeted advertising on platforms like Facebook and Instagram. Their profit margins included the costs associated with customer acquisition. Projections for the following year were ambitious, with an anticipated $16 million in revenue from the sale of 240,000 Codis. Notably, their manufacturer was also an investor in the company.
The Negotiations:
The Sharks initially expressed skepticism about the product’s potential to scale successfully, citing concerns about children losing interest quickly and competition from tech giants like Amazon. All the Sharks initially declined to invest. However, Robert Herjavec experienced a change of heart and made an offer of $500,000 for 25% equity in the company.
The founders countered with a 20% equity offer, but Robert stood firm at 25%, and the deal was ultimately accepted. The founders appreciated Robert’s belief in their vision and his commitment to providing both funding and guidance to help ensure the product’s success. This unexpected turn of events allowed Pillar Learning to secure the investment needed to bring Codi into more homes and expand their business.
