"I'm Sorry But You're OUT!" | Shark Tank US | Shark Tank Global

Summary

Tanya Vancourt, CEO of Goal Setter, pitches her innovative platform on Shark Tank, seeking $200,000 for 4% equity. Goal Setter allows family and friends to give children money towards specific goals like college or summer camps, replacing traditional gifts with savings. Tanya explains the platform’s unique features, including FDIC-insured accounts and automated savings. Despite traction from top fintech accelerators and a compelling mission, the sharks remain skeptical about the complexity of the business, with Kevin O’Leary offering a deal at 25% equity. Tanya rejects the offer, emphasizing her commitment to her company’s vision over giving up a large stake.

Takeaways

• 😀 Tanya Vancourt, the CEO and founder of Goal Setter, is seeking $200,000 for a 4% equity stake in her company.
• 😀 Goal Setter offers an alternative to traditional gift-giving by allowing friends and family to gift money for children to save toward meaningful goals, instead of giving toys or other material items.
• 😀 The platform provides a savings account for kids, managed through the parent’s account, where they can save for things like camps, lessons, or college.
• 😀 Goal Setter's system is FDIC-insured, and parents can add their kids to the accounts with ease, a key feature considering the difficulty of opening children’s bank accounts.
• 😀 The company aims to teach kids financial literacy and promote long-term savings by encouraging them to set goals for their money, which can be tracked and grown over time.
• 😀 Goal Setter charges a $1 fee per goal card given, minus transaction fees, and also offers an optional $1 per month per child for savings features.
• 😀 The company also generates revenue by taking a percentage of assets under management, with their partner bank offering 1% back, a high rate compared to industry standards.
• 😀 Tanya highlights that kids who have savings accounts in their names are six times more likely to attend college and four times more likely to own stocks by young adulthood.
• 😀 The company has raised $2.1 million in funding and is working with major banks, having been accepted into one of the top fintech accelerators in the country.
• 😀 While Tanya’s mission is well-received, several sharks (investors) express concerns about the challenges in scaling the business, particularly around compliance, customer acquisition, and market education.
• 😀 Kevin O'Leary ultimately offers Tanya $200,000 for 25% equity, showing confidence in her mission despite the challenges, but Tanya declines due to the significant equity request.

Q & A

What is Goal Setter and what problem does it aim to solve?

Goal Setter is a platform that helps families gift money to kids for their savings goals instead of giving physical toys or items. It aims to address the issue of children receiving too many toys and gifts they don’t need, encouraging financial literacy and savings among young people.

How does Goal Setter work for families and kids?

Goal Setter allows family members and friends to give kids 'Go Cards'—money deposited into an FDIC-insured savings account. Kids can watch their savings grow for specific goals, such as attending a robotics camp, music lessons, or even saving for college.

Why does Tanya believe Goal Setter is a better gift option than traditional toys?

Tanya believes that kids already have too much stuff and many gifts are often forgotten or only played with once. By offering money for savings, Goal Setter helps kids save for meaningful goals, empowering them with financial literacy from a young age.

How does Goal Setter ensure the safety of the kids' savings?

Goal Setter partners with a bank to set up FDIC-insured savings accounts for kids, which ensures that the money is secure. Parents manage the account, and the kids can see their savings grow through the platform.

What is the fee structure for using Goal Setter?

Goal Setter charges a $1 fee for each 'Goal Card' given, minus a 5-cent transaction fee for each transfer. Additionally, parents can opt into a $1 per month charge per child for using the savings features.

How does Goal Setter generate revenue beyond gift-giving?

Goal Setter makes money by charging parents a monthly fee for savings features, taking a percentage of assets under management (1% or 100 basis points from the bank partner), and by charging a small transaction fee for each transfer.

What challenges did Tanya face when setting up FDIC-insured accounts for kids?

Tanya acknowledged that setting up savings accounts for kids is typically a complex and time-consuming process. Goal Setter simplifies this by setting up the account in the parent’s name and allowing easy management and addition of kids' accounts.

What was Kevin O'Leary’s initial reaction to Goal Setter’s business model?

Kevin O'Leary was impressed with the business model but expressed concerns about the difficulty of working with banks and the compliance challenges that come with financial services. He initially offered to invest but at a high equity stake due to the complexities involved.

What did the Sharks think of Goal Setter’s growth potential and challenges?

The Sharks had mixed opinions. While they appreciated the mission and idea behind Goal Setter, some, like Mark Cuban and Jamie Siminoff, felt that the business was too complicated and outside their area of expertise. Kevin O'Leary was willing to make an offer, but only if Tanya accepted a significant equity stake.

How does Tanya differentiate Goal Setter from other similar platforms in the market?

Tanya differentiates Goal Setter by focusing on financial literacy and teaching kids the importance of saving for their goals. Unlike other platforms, Goal Setter encourages gifting money towards goals rather than physical items, thus fostering long-term financial habits.