Zoobean Curated Reading (Beanstack)
DEAL
EPISODE SUMMARY
🕓 Air Date: April 18, 2014
Asking For:
$250,000 for 15%
Investor:
Mark Cuban
Deal:
$250,000 for 25%
PRODUCT SUMMARY
Zoobean is a children's book discovery platform and personalized subscription service founded by Felix Brandon Lloyd and Jordan Lloyd Bookey, aiming to address the lack of diverse and personalized children's books available.
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Background Story
Felix Brandon Lloyd and Jordan Lloyd Bookey, the founders of Zoobean, reside in Washington, D.C., with their two children. Their journey to creating Zoobean was inspired by personal experiences and a shared passion for education. Both Felix and Jordan have extensive backgrounds in the field of education, which laid the foundation for their entrepreneurial venture. Before starting Zoobean, Felix was recognized as the Washington, D.C., Teacher of the Year, highlighting his dedication to innovative teaching practices and commitment to student success.
Additionally, he ventured into the technology sector, founding a company focused on kids’ and education-related products, culminating in a successful exit three years prior to launching Zoobean. Jordan, on the other hand, held a prominent position as the Head of K-12 Education at Google, showcasing her expertise in educational technology and leadership in the industry. Her role at Google provided valuable insights into the intersection of technology and education, fueling her desire to create impactful solutions in the field.
The idea for Zoobean was born from their own struggles as parents to find diverse and personalized children’s books that resonated with their family’s background. When their son received a book depicting a mixed family, it sparked a realization of the lack of representation in children’s literature. This experience motivated Felix and Jordan to create Zoobean, a platform that not only addresses the need for diverse children’s books but also promotes literacy and inclusivity.
The Product
Zoobean is a comprehensive children’s book discovery platform and subscription service designed to address the challenge of finding diverse and personalized literature for young readers. The platform operates by utilizing various filters such as recommended age, language, and character backgrounds to curate tailored book recommendations for children. Users can access Zoobean’s website and set preferences based on their child’s interests and demographics.
Once preferences are established, Zoobean’s algorithm matches users with suitable books, ensuring that children receive recommendations that resonate with their unique backgrounds and preferences. The platform offers a personalized browsing experience, allowing parents and caregivers to explore a curated selection of children’s books that reflect diverse experiences and perspectives.
Zoobean’s subscription service enables users to sign up for a recurring delivery of curated books, ensuring a steady supply of new and engaging reading material for children. The service aims to promote literacy, foster a love of reading, and encourage inclusivity by providing access to a diverse range of literature. Pricing details for Zoobean’s subscription service may vary depending on the chosen plan and frequency of book deliveries, providing flexibility for users to select a subscription option that best fits their needs and budget.
How It Went
The company’s position before Shark Tank
Zoobean was in the early stages of its business journey, having recently launched a beta version of its platform. The company had garnered attention with its innovative approach to children’s book discovery and had attracted 85 subscribers and gifters. However, Zoobean’s customer base was still relatively small, indicating room for growth and expansion. As for funding, Zoobean was seeking a $250,000 investment from the sharks in exchange for 15% equity in the company. As a subscription-based service focused on delivering curated children’s books, Zoobean likely collaborated with publishers and distributors to source their inventory.
Additionally, the company may have explored partnerships with educational institutions, libraries, and other organizations to expand its reach and customer base. Regarding profits and losses, Zoobean’s financial performance was not explicitly mentioned during the pitch. Given its early stage, the company may have been operating at a loss as it invested in product development, marketing, and customer acquisition efforts to establish its presence in the market. However, with the support of Mark Cuban’s investment, Zoobean had the potential to strengthen its financial position and accelerate its growth trajectory.
As for the company’s structure, Zoobean was founded by Felix Brandon Lloyd and Jordan Lloyd Bookey, who likely held executive positions within the organization. The company’s team likely consisted of individuals with backgrounds in education, technology, and business, working together to drive Zoobean’s mission and growth initiatives forward. As Zoobean continued to evolve, it would likely refine its organizational structure to support its expanding operations and strategic objectives.
The Negotiations:
During the negotiations on Shark Tank, Zoobean founders Felix Brandon Lloyd and Jordan Lloyd Bookey initially sought a $250,000 investment in exchange for 15% equity in the company. Mark Cuban expressed interest in Zoobean’s potential but raised concerns about the company’s ability to compete with established players like Amazon. Despite these reservations, Cuban made a counteroffer of $250,000 for 30% equity, citing the challenges of customer acquisition in the children’s book market.
After some negotiation, Felix and Jordan accepted Cuban’s offer, ultimately settling at 25% equity. Cuban saw potential in Zoobean’s curated content platform and envisioned its expansion beyond books into other media content areas. His investment provided Zoobean with the financial backing needed to scale its operations and reach a wider audience. Other sharks, including Lori Greiner and Robert Herjavec, expressed doubts about Zoobean’s uniqueness and market potential, ultimately opting out of the deal.
However, Cuban’s belief in the company’s vision and the founders’ passion for promoting literacy and diversity in children’s literature persuaded him to invest in Zoobean. The negotiation process highlighted the challenges and opportunities facing Zoobean as it sought to establish itself in a competitive market. Cuban’s investment provided validation of the company’s concept and positioned it for future growth and success.
