SEASON 7 EPISODE 26
childcare management app
$400,000 for 4% ($10M)
$600,000 at $9M valuation
Chris Sacca & Mark Cuban
Brightwheel is the childcare management app that allows childcare providers to manage their business while sending parents updates on their children throughout the day.
Since its development, Brightwheel has been used by preschools, day cares, nursery schools, and camps that range in size from a few to hundreds of children.
The childcare management software allows you to track attendance and room ratios, share photos and videos, assess learning milestones, communicate with parents, send paperless invoices and payments, and manage staff.
Brightwheel, is one of many daycare apps for android and iOS and can be found on the App Store and Google Play where it has a 4.4+ rating over thousands of reviews.
To make the app affordable to low income areas, Brightwheel makes money through a freemium model. Anyone can use their basic plan which includes attendance, daily reports, photos, teacher & parent apps, invoicing & bill payment and only 1 staff member, up to 20 students and access to their online help center. Its perfect for those looking for free daycare software.
The Brightwheel Premium service is available at an additional monthly fee and includes the Brightwheel Basic plan plus student & staff check-in, room ratios, videos, messaging & calendars, unlimited staff, unlimited students, and access to email, chat and phone support.
BRIGHTWHEEL BEFORE SHARK TANK
San Francisco-based entrepreneur, Dave Vasen, founded Brightwheel in 2014 when it was still the preschool management service called KidCasa.
He would then spend a year in development and rebranding before relaunching Brightwheel in 2015 after raising $2.2 million from a series of investors.
BRIGHTWHEEL ON SHARK TANK
The Sharks were initially unimpressed by his model, but once Vasen mentioned the 2,500 schools he recruited across all 50 states, and that his projected revenue was $1 million for 2015, $6 million for 2016, and $20 million for 2017, the Shark wars would soon begin.
Although not entirely sold on the monetization model, both Chris Sacca and Mark Cuban acknowledged that the platform would be fill a huge gap in the industry while solving a big problem for parents, teachers and schools.
But it would be Mr.Wonderful, Kevin O’leary, with the first offer of $400,000 for 10% – a significant drop in Vasen’s proposed valuation of $10M.
Chris Sacca makes an offer of $400,000 for 4% and after some debate Mark joins in. Vasen ultimately accepts an offer of $300,000 each from Chris and Mark at a $9 million valuation ( 3.34% each).
LIFE AFTER SHARK TANK
In February 2017, Brightwheel raised $10 million during their Series A funding round which included Mark Cuban Companies and Lowercase Capital – the investment firm headed by guest-shark, Chris Sacca.
More recently, in October 2018, the company raised an additional $21 million in Series B funding from a number of prominent investors including the Chan Zuckerberg Initiative – the capital management group founded by Facebook’s Mark Zuckerberg and his wife Priscilla Chan.
The last round of investments brought Brightwheel’s net worth to $31+ million, making it one of Shark Tank’s most successful businesses, with much more room to grow.
According to Vasen, Brightwheel intends to use its funding to double in size and to add more features to its product including lesson plans and more activities for kids.