SmartGurlz

Coding Robots For Students

Company Information

Website:

http://www.smartgurlz.com

Sector:

Education & Training Software

Location:

Arlington, VA

SmartGurlz sells a line of robot "dolls" designed to teach young girls how to code.

By using a series of software programs, including an e-learning app called SugarCoded, kids learn coding skills to power and control robotic dolls.

Kids then use these robots to complete digital games and “missions,” helping them gain early interest in Science, Technology, Engineering, and Math, also known as “STEM.”

In 2018, SmartGurlz raised $619,000 in an equity crowdfunding round at a $7 million valuation. At the time, the company had:

• Appeared on ABC’s “Shark Tank” and received an investment offer from “shark” Daymond John.

• Created partnerships with Google, BlackGirlsCode, and the Girl Scouts of America.

• Surpassed $1 million in revenue.

• And secured product distribution channels with Amazon, Walmart, and Learning Express.

Since then, the company has achieved even more progress — for example:

• It signed a TV licensing deal with a popular children’s television program.

• Completed a pilot program with 10 schools to implement its products into classrooms.

• And doubled the number of products sold from 15,000 to 30,000.

Notably, SmartGurlz received a $200,000 investment from Morgan Stanley. The company will operate out of Morgan Stanley’s New York offices for the remainder of 2019, and will take part in its Multicultural Innovation Lab. More than 300 startups applied for spots in this accelerator program, and only 10 were selected based on their potential for success.

SmartGurlz is now in talks with NASA to introduce new products based around Mars exploration. And it’s signed a contract to help develop a new animated television series for kids.

Despite all this recent progress, SmartGurlz is raising funds again at a $7 million valuation, presenting an opportunity to invest in this company at the same level as 2018 investors.

With its robots and coding programs, SmartGurlz is targeting the $40 billion educational technology, or “EdTech” market.

Several companies in this market have achieved considerable success — for example:

LeapFrog, a company that develops electronic-based learning products for kids, generates $200 million in annual revenue and is valued at $1 billion.

And New York-based coding boot camp General Assembly was recently acquired for $412 million by staffing agency Adecco.

Today, parents spend an average of $850 per year per child on EdTech products. But around the world, there is a shortage of people — particularly women — studying STEM-related subjects.

Nearly 75% of young girls are interested in STEM programs. But by age 11, 70% shy away due to a lack of confidence or interest. As a result, only 7% of STEM degrees are awarded to women.

SmartGurlz is changing that with its robots and helping young girls develop a passion for STEM subjects.

Since launching in 2016, SmartGurlz has generated $1.6 million in revenue. Each robot doll retails for $79.99 and comes with a scooter and the SugarCoded app.

SmartGurlz aims to create additional revenue channels in the future by licensing its content, games and “missions,” and any learning curriculum it develops using the robots.

The company has signed a licensing deal with PBS’s “Odd Squad.” This is a popular live-action television show for kids that receives more than 9 million viewers per month. This show focuses on using math to solve mysteries, which fits into SmartGurlz’s STEM-related mission.

In addition, the company completed a pilot program with 250 students in 10 schools called SmartBuddies. This coding program helped introduce SmartGurlz’s products into classrooms and helped create diversity and inclusion in coding and STEM programs.

As a result of the pilot, 92% of students said working with robots was fun, and 88% of teachers said SmartBuddies would improve engagement with students. SmartGurlz aims to launch the SmartBuddies program in June 2019.

The company has partnered with Pitsco, which works with schools to increase students’ engagement with STEM programs. Pitsco worked with LEGO for 10 years, introducing products and lessons into schools, and will do the same for SmartGurlz.

Team Background

Jesper Nissen - Co-Founder & CTO

Jesper is a longtime engineer and industrial designer who has been instrumental in helping three tech companies achieve successful exits.

He has more than 20 years’ experience in research and development, engineering, production, and logistics.

Prior to starting SmartGurlz, Jesper served as Executive Vice President of Global Operations for Teledyne industrial technology company. This company acquired Reson, where Jesper previously served as VP of Global Operations.

He formerly served as Chief Operating Officer for Kaleido Technology, an electronics manufacturer that was acquired by Millpond.

In addition, Jesper spent nearly 10 years in various senior roles with Phase One digital photography company.

He earned an MBA from Copenhagen Business School.

Sharmi Albrechtsen - Co-Founder & CEO

Sharmi has more than 20 years’ experience in STEM, specifically as a director of learning, communication, and marketing.

Before starting SmartGurlz, she served as Communications Manager for Ferring Pharmaceuticals and Head of Communication for Sonion, a company producing hearing aid instruments.

She was instrumental in getting SmartGurlz chosen as a participant on ABC’s “Shark Tank” television show, and was nominated to AdWeek’s top 37 women “Who Are Disrupting the Status Quo and Championing Gender Diversity in Advertising and Tech.”

Sharmi earned a Bachelor’s degree from Temple University and an MBA from Copenhagen Business School.

Martin Pidel - Chief Marketing Officer

Martin brings more than 20 years’ experience in the toy industry to SmartGurlz.

He was formerly Vice President of Global Brand at Hasbro, and Executive Vice President of International at LeapFrog. While with these companies, he introduced brands to retailers around the world, and brokered licensing deals with television studios.

Martin brought hundreds of toys to the market, including Big Hugs Elmo, voted “Pre-school Toy of the Year” in 2014.

He earned a Bachelor’s degree in Marketing from the State University of New York at Buffalo, and an MBA from Schiller International University.

Co-Investors

Capnova

Denmark-based investment company that provides capital and networking to technology companies. Portfolio includes StockonDeals (an e-commerce platform) and Human Technologies (voice-controlled assisted living facilities).

Morgan Stanley

A global investment bank and financial services company.

Raising
$1.07 million
Committed
$250K (23%)
Current Valuation
$7 million Cap / 20% Discount
Min. Investment
$100
Deal Type
Title III
(For all investors)
Offering Type
Convertible Debt
Finance History
  • $619K
    2018-06-29
    Unknown
  • $400K
    2016-08-01
    Unknown
  • $100K
    2015-11-12
    Unknown
Notable Investors
  • Capnova
  • Morgan Stanley
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