Tanoshi Kids Laptop
DEAL
EPISODE SUMMARY
🕓 Air Date: May 6, 2020
Asking For:
$500,000 for 8%
Investor:
Daymond John
Deal:
$500,000 for 20%
PRODUCT SUMMARY
Tanoshi offers the Tanoshi 2-in-1, a two-in-one tablet and computer designed for kids, preloaded with age-appropriate and educational content, featuring built-in parental controls.
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Background Story
Tanoshi, founded by Brad Johnston, Lisa Love, and Greg Smith in San Francisco, emerged from Brad’s extensive background in the consumer electronics space. Brad, with a history of consulting for major companies like Dell, HP, and Intel, witnessed the growing demand for toddler tablets.
The pivotal moment came when Brad’s family members, who taught in low-income schools, revealed the challenges faced by students during computer-based standardized tests. Recognizing the need for an affordable solution, Tanoshi was born with the mission to provide accessible technology for all children, regardless of income.
The Product
The Tanoshi 2-in-1 is a versatile device priced at $199, significantly more affordable than competitors like the iPad. It functions as both a tablet and computer, preloaded with educational content for kids to do homework, play games, and even learn to code.
The device comes with built-in parental controls, allowing parents to manage and monitor their child’s online activities. For instance, parents can pause the device remotely from their smartphones, ensuring a safe online environment.
The product’s affordability and educational focus make it an attractive option for parents seeking a balance between technology and learning for their children.
How It Went
The company’s position before Shark Tank
Tanoshi has been on the market for about a year and a half, achieving notable success with sales reaching $720,000. Despite the competitive nature of the consumer electronics space, Tanoshi has sold out three times in its first year and a half. Brad’s expertise in the industry, with a history of growing retail accessory businesses to significant revenue, positions Tanoshi for further growth.
The company currently operates with a niche focus on the children’s market, catering to the specific needs of young users. The founders have invested their life savings, totaling $150,000, and raised an additional $185,000 from friends and family. They’ve also secured loans to fund initial productions.
The Negotiations:
The Sharks expressed concerns about the highly competitive and challenging nature of the hardware business, especially in the consumer electronics space dominated by giants like Apple. Multiple Sharks, including Kevin O’Leary and Lori Greiner, opted out, citing the difficulties in the hardware and low-margin industry.
Daymond John, however, recognized the social mission behind Tanoshi and made an offer of $500,000 for a 20% equity stake. After negotiations, the deal was sealed at 20%, with Daymond leading licensing efforts to expand Tanoshi’s reach. The founders accepted the deal, expressing excitement about scaling their mission to make learning fun for every child.
