On-Demand Marketplace for Childcare
There are 34 million families in the U.S. with children under the age of 18. These families spend an average of $1,000 per year on informal childcare, creating a $34 billion market.
Nanno is targeting this market with a digital marketplace that connects parents with fully-vetted sitters on-demand.
Unlike other platforms in this market, Nanno features a proprietary vetting process for sitters. This includes a full background check, skills test, and behavioral test. This helps ensure parents are booking qualified, capable sitters to look after their children.
For many families, finding a qualified sitter is challenging. The few technology solutions that exist are antiquated and unreliable. As a result, most parents use old-fashioned methods to find sitters, and pay them in cash.
As “millennials” transition into parenthood, they are seeking a fast, reliable solution that solves this problem the same way technology has solved numerous other problems — with a simple, on-demand app. Nanno aims to be the solution this demographic is looking for.
Here’s how the childcare process works with Nanno:
First, parents set specific criteria they’re looking for in a caregiver. Next, details of the booking (requested date, time, location, pay rate) are sent to all sitters who meet this criteria.
Booking works in order of the parents’ preference. Specifically, the details are first sent to the parents’ list of “favorites,” then to caregivers trusted by friends, and finally to groups of eligible sitters.
When a sitter accepts the booking request, the parents’ credit card is charged.
Rates for childcare vary by metro area. In most U.S. cities, the rate is $20 per hour for up to 2 kids; however, in larger/more expensive areas, the rate can be as high as $35 per hour.
For each booking, Nanno earns between 20% and 30% commission as revenue.
According to Nanno CEO Liz Oertle, the biggest selling point for the platform is the speed in which parents can find suitable sitters. 90% of booking requests are filled within 15 minutes. Based on its speed and convenience, ABC7 in Denver dubbed Nanno “Uber for childcare.”
Said parent Khara Muniz in an interview with ABC7, “The last time I used Nanno I was like, ‘I need a sitter in an hour,’ and they placed me.”
The platform offers various protections to sitters. For example, if a parent cancels a booking within 24 hours of a job, the sitter will still be paid either half price or a flat $50 fee. If a parent comes home earlier than expected, the sitter still receives the full amount charged.
As mentioned, sitters on Nanno must complete a formal vetting process. This includes a full background check, skills test, and behavioral test. The skills test deals with basic safety rules and first-aid procedures. The behavioral test looks for personality characteristics that could potentially be detrimental to being a good caregiver — for example, if the sitter is more likely to prioritize his/her own needs or desires above the child’s.
“The vetting process is the crown jewel of our company,” Oertle told ABC7 in Denver, “because as parents ourselves we know how important that is.”
This vetting process is what separates Nanno from other companies in this space, including Care.com, UrbanSitter, and SitterCity. According to Nanno, these competitors also serve primarily as a directory to give parents access to a list of available sitters, but not a place to book services.
Nanno launched nationwide in 2018, and has raised $450,000 from notable investors including Quake Capital Partners and 500 Startups. The platform has more than 15,000 users in 45 states, and the company has generated $350,000 in gross revenue.
It costs Nanno $75 to acquire each customer, and each one’s lifetime value is $1,200.
Moving forward, Nanno will offer additional childcare and enrichment options to parents. This includes services for booking tutors, art and music lessons, and STEM classes.
Desi is a software developer with more than 17 years of experience.
Before founding Nanno, she co-founded DevChix, a company that helped give female software developers tools and guidance in the industry. She ran this company for 14 years and attracted more than 2,000 women developers worldwide.
Prior to DevChix, Desi was a mentor at the Telluride Venture Accelerator, a program for startups in the outdoor, travel, and wellness sectors. Before that, she spent three years as Managing Director of thoughtbot, inc., a consulting business for digital product companies.
She started her software development career as a developer for Hashrocket, a web design company, and working in production operations for MediaOcean, a computer software company.
Desi earned a Bachelor’s degree in Computer Science from Georgia Tech.
Sharon has direct domain experience in the family and parenting sectors.
She began her career as an account manager for Anthem (NYSE: ANTM), a health insurance company affiliated with Blue Cross Blue Shield. Following that, she served as Operations Manager for Irwin & Boesen, a Denver-based law firm.
Notably, she spent 10 years as an account executive for The Bump, a company providing resources to parents in the areas of fertility and pregnancy. Most recently, she was a freelance sales consultant before joining the team at Nanno.
Sharon earned a Bachelor’s degree in Journalism from Colorado State University.
Liz brings an extensive legal background to Nanno.
Prior to starting the company, she worked for SheEO, a global initiative focused on supporting and celebrating female entrepreneurs.
Before that, she founded Independent Law Group, a collection of attorneys that strived to provide the legal experience of a national law firm, while charging lower fees comparable to small-firm practices.
For six years, Liz was an associate at Davis Graham & Stubbs, a Denver-area law firm. And before that, she was an associate at Cleary Gottlieb Steen & Hamilton, a law firm based in New York City.
She began her career as a copy editor for Penguin Group, a leading book publishing company.
Liz earned a Bachelor’s degree in English from Binghamton University and a Law degree from the University of Michigan.
Prominent seed fund and accelerator program founded by PayPal and Google alumni. Investments include AngelList, Unbounce, and Behance.
A venture capital group and startup accelerator investing in seed-stage companies.