Personal Language Trainer 4way | #TBT | Shark Tank Brasil

Summary

In this Shark Tank Brazil episode, two entrepreneurs, Diogo and Diego, pitch their business, LT Forway, an innovative language learning platform designed for individuals from marginalized communities. Their method combines immersive lessons with real-life scenarios, enabling easy learning of English. Despite facing challenges, including a loss of students due to the pandemic, they’ve adapted to online classes. They ask for R$150,000 in exchange for 20% equity to further scale their business. A few Sharks express interest, but the deal becomes competitive as they negotiate terms, with the potential for more investment and partnerships to enhance their impact.

Takeaways

• 😀 Only 3% of the Brazilian population is proficient in English, while over 50% of companies seek employees with English skills.
• 😀 PLT Forway offers an innovative methodology that teaches English through situational classes targeted at marginalized communities, especially from the periphery.
• 😀 They developed the PLT Forway model to make English learning easier and more relatable for people from underserved communities.
• 😀 For every three paying students, PLT Forway offers one full scholarship to a student in need, helping create social impact through education.
• 😀 They initially offered in-person classes but pivoted to an online format during the COVID-19 pandemic, which proved to be successful.
• 😀 The company has partnerships with Canadian companies, leveraging their platforms to continue teaching English with real-life situations.
• 😀 The founders, Diogo and Diego, both had humble beginnings and learned English through volunteer work with Americans during their time in church missions.
• 😀 The company's revenue in 2019 was R$200,000, with a cost of R$120,000, leaving a profit of R$80,000.
• 😀 Their team consists of four full-time employees and six part-time teachers. They also provide affordable courses to people from low-income communities.
• 😀 PLT Forway's customer acquisition cost is low at R$126 per student, and they focus on keeping students engaged long-term, using a cross-financing model to support community scholarships.
• 😀 In the Shark Tank pitch, investors offered various proposals, including a 20% stake for R$150,000 or a larger stake with additional collaboration, with a proposal to expand further.

Q & A

What is the main focus of the business presented in the transcript?

The business focuses on teaching English to people from marginalized communities, especially in favelas, using an immersive methodology based on real-life situations.

What unique teaching methodology does the company use?

The company uses situational lessons that introduce English grammar and vocabulary through real-life, day-to-day scenarios, initially in-person and later pivoted to online due to the pandemic.

How does the company make its courses accessible to the community?

The company adopts a 'cross-financing' model, where for every three paying students, one student receives the course for free, helping to ensure that marginalized communities can access education.

What challenges did the business face during the pandemic?

During the pandemic, the company had to pivot from in-person lessons to online classes, which was a significant shift, especially as their target audience faced unemployment and economic challenges.

What is the company's approach to marketing and acquiring students?

The company uses a low-cost student acquisition model and plans to invest in marketing and sales to bring in more students, particularly focusing on digital platforms.

How did the business handle the financial impacts of the pandemic on their students?

The business saw a reduction in active students due to economic difficulties faced by their community. However, they successfully regained students, growing their active roster from 30 back to 110 students.

What financial figures are provided for the company's performance?

In 2019, the company earned R$ 200,000 in revenue with a cost of R$ 120,000, leaving them with R$ 80,000 in profit. For 2020, their forecast was R$ 220,000 to R$ 250,000 in revenue.

What is the company's cost of acquiring a new student?

The cost to acquire a new student is R$ 126, which aligns with their model of providing a scholarship for every three students enrolled.

What was the offer made by one of the investors?

One investor proposed to provide R$ 150,000 in exchange for 20% equity in the company, but also suggested giving the course for free to his 6,000 salespeople.

What decision did the business owners need to make regarding multiple offers?

The business owners were faced with multiple offers, including one from a group of investors offering 30% for R$ 150,000, while another investor offered 20% for the same amount. They considered which option would benefit them most in terms of growth and support.