SmartGurlz – Coding Robot for Girls
DEAL
EPISODE SUMMARY
🕓 Air Date: November 12, 2017
Asking For:
$200,000 for 5%
Investor:
Daymond John
Deal:
$200,000 for 25%
PRODUCT SUMMARY
SmartGurlz offers Siggy, the world's first coding robot for girls, a self-balancing hoverboard that carries fashion dolls and integrates with a proprietary app for coding.
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Background Story
Sharmi Albrechtsen, the founder of SmartGurlz, hails from Bethesda, Maryland. The inspiration for SmartGurlz struck when Sharmi’s daughter faced challenges in math. Witnessing a line of dolls in her room, Sharmi conceptualized a way to blend robots and dolls to create an engaging educational product.
The result was SmartGurlz Siggy, designed to encourage girls to enter STEM fields by making technology fun and accessible. The journey began two years ago, involving a year of dedicated work on the challenging self-balancing algorithm. Sharmi’s commitment to promoting diversity in engineering and overcoming the male-dominated workforce led to the creation of SmartGurlz.
The Product
SmartGurlz Siggy is a self-balancing hoverboard compatible with 11-inch fashion dolls. Users can connect it to any smart device via the SugarCoded app to start coding. The app, a significant e-learning platform, employs a story-based approach, making coding fun and accessible for girls.
During the pitch, SmartGurlz demonstrated a dance coded by young users using the SugarCoded app. The product is designed to address the shortage of female engineers by introducing girls to technology in a playful manner.
Siggy can be coded to move specific distances at varying speeds, teaching foundational programming concepts. SmartGurlz emphasizes the importance of early exposure to coding, comparing it to learning ABCs before writing novels.
The product’s uniqueness lies in its self-balancing feature, a result of rigorous mathematical development over a year. Siggy is available for purchase at $79.99, with a production cost of approximately $18.
How It Went
The company’s position before Shark Tank
SmartGurlz has been on the market for less than six months but has achieved $250,000 in sales. Sharmi initiated the business by presenting prototypes at the World’s Toy Fair, securing distributor agreements with over 300 interested companies. Sales are generated through distributors, direct retail, and Amazon. The company’s profitability is notable, given its short time in the market.
SmartGurlz’s strategy involves licensing or selling the unique self-balancing algorithm. The product’s provisional patent adds value, considering the difficulty in developing such algorithms. The company’s focus is on an e-learning platform that puts girls at the center, fostering interest in STEM fields. SmartGurlz’s vision aligns with addressing the drop-out rate of females in engineering by introducing coding early.
The Negotiations:
Sharmi entered the tank seeking $200,000 for 5% equity. Daymond John offered $200,000 for a 30% stake, emphasizing his interest in licensing the product. The other Sharks bowed out, citing concerns about the challenging retail market and potential competition. Lori Greiner highlighted the uniqueness of the idea but opted out due to her perceived lack of added value.
Negotiations primarily revolved around the equity stake for Daymond’s $200,000 investment. After some back-and-forth, Sharmi agreed to a 25% equity share, securing Daymond as a partner. The deal aims to leverage Daymond’s expertise in licensing to propel SmartGurlz into wider markets, realizing its potential in revolutionizing STEM education for girls. The negotiation showcased Sharmi’s dedication and belief in her product, ultimately resulting in a successful deal.
