Goalsetter Savings App For Kids
NO DEAL
EPISODE SUMMARY
🕓 Air Date: March 10, 2019
Asking For:
$200,000 for 4%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Goalsetter is a platform reshaping gift-giving for kids by allowing family and friends to contribute money toward meaningful goals, promoting financial literacy and savings.
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Background Story
Tanya Van Court, the visionary founder and CEO of Goalsetter, brings a wealth of experience to the financial and tech sectors. Hailing from Brooklyn, New York, she embarked on a mission to revolutionize gift-giving for children. Tanya, well-aware of the overwhelming influx of toys and gifts that children accumulate but rarely use, recognized the need for a more meaningful approach. Her background, steeped in financial acumen and a desire to instill financial literacy in the younger generation, laid the foundation for Goalsetter.
The concept for Goalsetter emerged from Tanya’s observation that, by the age of 12, the average American child accumulates nearly $7,000 worth of largely unused items. Determined to reshape this paradigm, Tanya envisioned a platform that shifts the focus from physical gifts to contributions toward meaningful goals. This shift not only addresses the issue of excessive possessions but also promotes financial responsibility and goal-setting among children.
Tanya’s experience in navigating the complexities of financial systems became a driving force behind Goalsetter’s mission. Recognizing the challenges associated with setting up savings accounts for kids, she sought to streamline the process. The platform’s goal is to empower parents, family members, and friends to contribute to children’s futures by facilitating savings for experiences like robotics camp, music lessons, or college. Located in the vibrant entrepreneurial landscape of Brooklyn, Goalsetter is not just a financial platform but a manifestation of Tanya Van Court’s commitment to transforming the way society approaches gift-giving and financial education for the next generation.
The Product
Goalsetter, at its core, is a transformative platform designed to redefine the way children receive gifts and learn about finances. The product operates by allowing family members and friends to contribute money toward specific goals set by the child, fostering a culture of meaningful gift-giving and financial responsibility.
The process begins with contributors choosing to give GoalCards instead of traditional gifts. These GoalCards represent monetary contributions that are deposited into FDIC-insured savings accounts accessible through the Goalsetter platform. Unlike traditional gift cards that merely encourage spending, GoalCards inspire children to watch their savings grow towards real, tangible dreams, be it attending a robotics camp, taking music lessons, pursuing gymnastics, or saving for college.
Goalsetter eliminates the clutter of unnecessary physical gifts and replaces it with a focus on experiences and long-term financial goals. The platform not only facilitates gift-giving but also offers parents the option to set up auto-save features, allowing them to regularly contribute towards their child’s significant goals.
To access Goalsetter, contributors and parents can engage with the platform online. The revenue model involves a fee of one dollar for every GoalCard given, along with charges for parents signing up for additional savings features. The product’s emphasis on financial literacy, responsible saving, and the pursuit of meaningful aspirations positions Goalsetter as a unique and valuable tool for families looking to instill financial skills in their children.
How It Went
The company’s position before Shark Tank
As of the pitch, Goalsetter demonstrated a promising trajectory in its early stage. The company’s health and position were reflected in its unique market approach and the recognition it gained in the fintech space. Goalsetter had successfully raised $2.1 million, a testament to investor confidence in its mission to reshape gift-giving and instill financial literacy in children.
The company had strategically aligned itself by joining an accelerator with one of the three major consumer banks in the country. This partnership showcased Goalsetter’s commitment to simplifying the arduous process of setting up savings accounts for kids, indicating a potential avenue for widespread adoption. Goalsetter’s primary customer base comprised parents and family members seeking a more meaningful alternative to traditional gift-giving. The platform aimed to cater not only to individual contributors but also to parents looking to set up regular savings plans for their children’s future goals.
Funding for Goalsetter was derived from a combination of investor contributions, with $2.1 million already secured, and ongoing revenue streams from transaction fees and savings features. The company’s profitability at this early stage might be limited, given its focus on market penetration and building its user base. The revenue model included a fee of one dollar for each GoalCard given, alongside charges for parents signing up for additional savings features. With the recent acceptance into a major accelerator and a notable partnership with a leading consumer bank, Goalsetter seemed poised for strategic growth and the realization of its vision to transform how children perceive gifts and savings.
The Negotiations:
The negotiations for Goalsetter in the “Shark Tank” episode unfolded as an intriguing mix of enthusiasm for the mission and apprehension about the complexities of the fintech space. Tanya Van Court entered the tank seeking $200,000 for a 4% equity stake, valuing her company at $5 million. However, as the pitch progressed, it became evident that the Sharks had reservations about the scalability and challenges associated with financial platforms.
The negotiation dance started with Tanya declining Kevin O’Leary’s offer of $200,000 for a hefty 25% equity stake, a deal she deemed unfavorable. Other Sharks, including Mark Cuban and Daymond John, bowed out early, citing the departure from their typical investments. Despite the Sharks expressing admiration for Goalsetter’s mission, concerns about customer acquisition costs and the intricate nature of the fintech industry lingered. Tanya highlighted the company’s recent acceptance into a major bank’s accelerator program, aiming to leverage this partnership to simplify the process of setting up savings accounts for kids.
As negotiations continued, Tanya remained steadfast in her belief in the company’s potential, rejecting Kevin O’Leary’s aggressive offer. The Sharks were intrigued, yet cautious, recognizing the value of Goalsetter’s mission but ultimately choosing not to invest. The negotiation concluded with no deal, leaving Tanya to express confidence in securing a better offer and affirming her commitment to the company’s transformative vision. The episode encapsulated the delicate balance between mission-driven entrepreneurship and the pragmatic considerations of the investors.
