Spark It: An Online Art Education Platform
They’re filled with curiosity, ideas, and emotions, but with art not being a priority in schools, children and teenagers really don’t get the opportunity to explore them. This is why Spark It was created, an online art education platform for kids and teens, where they can learn art anywhere and everywhere. Each Spark It membership comes with access to a library of over 1000 art video lessons taught by engaging mentors within their specialized fields. Spark It is built from the ground up with features that cater towards kids and teens, such as 5 to 10-minute, bite-sized video lessons and a virtual art portfolio that they can create and share with our global community.
Investing in the Next Generation
With Spark It, budding artists can go from a blank sheet of paper to a complete masterpiece. The creators of Spark It are passionate about inspiring creativity in the youth and they are looking for investors who share the same vision. They believe that with the right support, they can make the next generation the most creative generation yet. The team is ready to showcase their work of art to the Sharks on Shark Tank US and pitch their idea for investment.
Interactive Art Activity with the Sharks
During their pitch on Shark Tank, the creators of Spark It decided to do a quick activity with the Sharks to demonstrate the power of art education. They presented a step-by-step guide on how to create a feather using a toothbrush. The Sharks were intrigued and excited to participate in the activity. With each stroke of the toothbrush, they could see their feather taking shape. By the end of the activity, the Sharks were amazed at their own creativity and talent.
About Sparketh
Sparketh is a unique platform that focuses on teaching creativity to kids. It started off targeting the homeschool market but has since expanded to include any parent struggling to teach their children creativity.
Market Penetration
The homeschool market is known to be closed off and tight-knit, making it difficult for new players to enter. However, Sparketh managed to infiltrate this market by showcasing its innovative approach at expos and events. The founders started with limited resources but managed to build a website and create an MVP through sheer determination and hard work.
Dedication to Learning
The founders of Sparketh, who dropped out of Kennesaw State University in Atlanta, Georgia, demonstrated a strong commitment to learning and improvement. They taught themselves graphic design, CSS, and HTML, showing that with passion and dedication, anything is possible.
Entrepreneurship as a Passion
As the business started growing, the passion for entrepreneurship became evident. Despite facing challenges due to being born with CLE cell disease, the entrepreneur embraced his passion for entrepreneurship. CLE cell disease, a blood disorder, comes with a limited average lifespan of 30 years, which prompted the entrepreneur to pursue his dreams without delay.
A Lifelong Pursuit
Regardless of financial success, the entrepreneur remains committed to entrepreneurship. The drive to follow his passion and utilize his gift in entrepreneurship serves as a motivating factor. Even if he were to become a billionaire overnight, the dedication to entrepreneurship would not waver.
Meeting and Bonding Through Magic
The entrepreneur and his partner met as kids through a mutual friend, bonding over their shared love for magic tricks. Magic not only brought them together but also served as a source of joy and light amid challenging times. Their shared passion for magic has woven a strong bond between them.
Brightening the Shark Tank Pitch
Despite the dark times faced in life, the entrepreneurs bring a sense of positivity and humor to their Shark Tank pitch. Demonstrating a magic trick during the presentation lightens the mood and showcases their ability to find brightness in any situation. Their unique approach captures the attention of the sharks and the audience.
Revenue and Business Model
Last year, Sparketh generated $300,000 in revenue, all direct to consumer through online art classes on a subscription model basis. For $25 a month, a parent can sign up and get two student accounts. However, acquiring and retaining customers is a challenge for the company.
Customer Acquisition and Retention
Over the past 12 months, Sparketh has struggled to retain customers for more than 6-7 months, even though the lifetime customer value is around $160. The cost to acquire a customer is $51.50, indicating a need for improved customer retention strategies.
Business Performance and Growth
Sparketh started in 2015 but has yet to turn a profit, despite the $300,000 revenue generated last year. The company’s financial performance has been inconsistent, with $75,000 in revenue the year before and $110,000 the year before that.
Challenges Faced in 2018
In 2018, Sparketh faced challenges due to rapid expansion and intense workload. The company pushed itself to the limit by traveling nonstop and attending numerous events to promote the business. The focus on homeschool expos led to overexertion, with the team selling and promoting the service every weekend without a break.
Health Concerns at Launch
We ended up putting ourselves in the hospital at the launch of the website. Both of us were hospitalized at the same time, which was a challenging experience. It made us realize the importance of taking care of our health while pursuing our entrepreneurial dreams.
Investment Plans
The Sharks were curious about our intentions for the $100,000 investment. We explained that the funds would primarily be used for creating content and improving the platform to attract more users and generate revenue.
Financial Status
When asked about our monthly expenses, we revealed that we were breaking even. While not currently profitable, we had the potential to turn a profit if we focused on revenue generation. The Sharks were interested in our business model and long-term sustainability.
Business vs. Hobby
One of the Sharks questioned whether our venture was a serious business or just a hobby. We clarified that it was indeed a business, focused on growth and scalability. While we hadn’t prioritized profitability yet, it was a goal for the future.
Growth Projections
Looking ahead to 2021, we shared our forecast of reaching $500,000 in revenue for the year. The Sharks were impressed by our ambitious goals and saw the potential for significant growth in the coming months.
Investor Decision
After deliberation, one of the Sharks decided to offer us $100,000 for an 8% stake in the company. While expressing admiration for our creativity and vision, another Shark opted out, citing a lack of personal interest in the app industry.
Valuation and Investment Concerns
The entrepreneurs presenting their business, Sparketh, on Shark Tank US were seeking a $25 million valuation. The Sharks were quick to point out that in order for the business to be considered profitable, it would need to at least break even. Kevin questioned how he would be able to recoup his $100,000 investment, highlighting the importance of a solid financial return on investment.
A Vision for Impact
The entrepreneurs emphasized that their vision for Sparketh was more than just about making a quick profit. They aimed to make a significant impact on the world by providing educational resources to a global audience. This focus on creating positive change resonated with the Sharks, who recognized the potential for social impact alongside financial returns.
The Need for Differentiation
Despite the admirable vision behind Sparketh, the Sharks raised concerns about the lack of a unique selling proposition. They pointed out that the business lacked a distinct feature or marketing strategy that set it apart from competitors. Without a clear differentiator, the Sharks questioned why potential customers would choose Sparketh over other available options.
An Offer of Investment
While the Sharks acknowledged the charisma and passion of the entrepreneurs, they ultimately decided not to invest in Sparketh due to concerns about profitability and differentiation. However, one Shark expressed admiration for the team and offered to make an investment based on their personal connection and belief in the entrepreneurs’ potential.
Taking a Risk for Profit
No, I’m going to offer you $100,000 for 20% of your businessouch, but it’s contingent on you proving to me after 6 months that you’ve been able to make a profit. If you don’t make the profit, you don’t get the money. If you make the profit, you get the $100,000.
Overcoming Challenges
Guys, I’m struggling enormously because I can tell that you’re actually holding it inside, and I can tell that the struggles are probably even greater. They are. Knowing the CLE cell disease that you have and standing up and continuing to work and not give up on your dreamI’m getting chills just thinking about your journey.
A Partnership Offer
At the same time, you’re treating this as a charity rather than with the seriousness and respect of an entrepreneurial vision. Well said, so I would like to partner with Barbara, if she’s up to it, and I’d like to mentor you together with her, but give you the 6 months to turn it into a business.
The Power of Collaboration
If you’d like me as your partner, I would. It depends, Daniel? I mean, it’s only 20% for 10% equity. Are you willing to jump in here for these guys? Yes, okay, I respect that. I think that’s a great idea. I truly believe that we can accomplish anything we put our minds to together as a team.
A Contingency Deal
And if you’re willing to take a contingency deal as an entrepreneur, there’s no better deal. The Sharks want proof that Sparketh can become profitable, and they are willing to offer support and guidance to help make that happen.
Contingency Deal Offered
We could have gotten here than a contingency deal, so then I would say: yes, you have the offer on the table. Okay, all right! Well, take it well, take it, we got it. Congratulations are helping so many young kids.
Congratulations from the Sharks
So much yes, we congratulations, guys. Fourway hug yeah come on come on, got congrats guys, congratulations, guys! Well, Music Done Got Two Two when I think about where I’ve started and being sick in the hospital so many times and doubting my potential just to be here on Shark Tank and to get not one but two sharks, Daniel and Barbara.