Tanoshi Shark Tank Update – Net Worth 2024

Parents worry about what their kids might see online. At the same time, they know that technology is important for their children’s success. Brad, Lisa Love, and Greg Smith from San Francisco saw this challenge and created Tanoshi. Their solution was a 2-in-1 tablet and computer combination that came with educational content and strong parental controls.

They came on the Shark Tank and asked the Sharks for $500,000 in exchange for 8% equity in their company. They wanted to expand their business and make this affordable, educational tech available to more families. Would the Sharks see the value in Tanoshi’s mission and invest? Find out in our Tanoshi Shark Tank Update!

Tanoshi Net Worth

Brad Johnston, Lisa Love, and Greg Smith asked for a $500,000 investment in exchange for 8% equity in their company. This meant they valued their company at $6.25 million. They made a deal with Daymond John for $500,000 in exchange for 20% of their company. This new deal valued their company at $2.5 million. After the show aired, Tanoshi saw a big increase in website traffic, sales, and social media exposure. They reached over $4 million in annual revenue by 2022. With an estimated 10% yearly growth rate (typical business growth), the current net worth of Tanoshi is about $4.84 million.

Tanoshi Shark Tank Update

What Happened To The Tanoshi After Shark Tank?

After their Shark Tank appearance, Tanoshi launched the Tanoshi Scholar. It is a more durable model with extra educational content created by award-winning educators. It also works well with video conferencing apps like Zoom and Google Meet. The exposure from the show saw an increase in the company’s sales and consumer interest. By 2022, Tanoshi had grown to over $4 million in annual revenue.

Did Tanoshi Get A Deal On Shark Tank?

Mark had major concerns regarding the scalability of the business. He also had problems with competing with other tech giants like Samsung and Apple. For those reasons, he didn’t want to invest. Kevin didn’t like the hardware commodity business they were in. He didn’t like the target audience and the thin margins the founders found themselves in. For those reasons, he decided not to invest. 

Anne just thought it was a challenge to grow the business. She decided to opt out of the deal. Lori didn’t think it was the right business for her. She declined to invest in Tanoshi. Daymond, on the other hand, was interested in licensing the product. He made an offer of $500,000 for a 20% equity in their business. The founders discussed it momentarily but eventually accepted the offer.

Shark(s) name	Offer & Demand	Counteroffer	Accepted?
Anne Wojcicki	Out	N/A	N/A
Mark Cuban	Out	N/A	N/A
Lori Greiner	Out	N/A	N/A
Kevin O’Leary	Out	N/A	N/A
Daymond John	$500,000 with a 20% stake in the business + deal depending on securing a licensing agreement	$500,000 with a 15% stake in the business.	Yes ($500,000 with a 20% stake in the business + deal depending on securing a licensing agreement.)

Founders Backstory

Brad got the idea for Tanoshi after seeing the struggles kids in low-income neighborhoods face with technology. His mom and sister told him about students who struggled with standardized tests because they didn’t know how to use a keyboard. Brad felt this was unfair and believed that every child, regardless of income, should have access to tools that help them succeed. Brad decided to create an affordable solution that could help bridge this gap by leveraging his experience. It wasn’t easy, but Brad along with Lisa Love and Greg Smith, pushed forward to bring Tanoshi to life. Their goal was to simply make learning fun and accessible for all kids.

Initial Pitch 

Brad Johnston, Lisa Love, and Greg Smith entered the Shark Tank with a clear goal. They asked for $500,000 in exchange for 8% equity in their company, Tanoshi. Their business aimed to make learning fun and accessible for kids. They introduced the Tanoshi 2-in-1, a tablet and computer combo that came preloaded with educational content and strong parental controls.

Brad explained that the Tanoshi 2-in-1 gave kids a safe and effective way to do their homework. They could also play games and even learn to code. The device offered parents peace of mind. They could control what their children accessed and track how much time they spent on certain apps. The team highlighted their growing sales and the potential for rapid expansion. 

Queries About The Product

Kevin O’Leary was the first to question how the Tanoshi 2-in-1 tablet could compete with big names like the iPad. In response, the entrepreneurs emphasized that their product was priced at $199, less than half the cost of an iPad. This competitive price point included everything a child might need. From parental controls, educational apps, and a fully functional device straight out of the box.

Mark Cuban then raised concerns about the margins, asking what the cost of the product was. The entrepreneurs revealed that their landed cost was around $120, which didn’t leave much room for profit. Daymond John joined in, pointing out that low margins were typical in the electronics space. They also noted that this presented a significant challenge for a niche product aimed at kids.

Mark shifted the discussion to sales and market performance. The entrepreneurs shared that they had been on the market for about a year and a half. They sold out three times and reached $720,000 in sales. They also highlighted their strong background in the consumer electronics industry. Brad had scaled a retail accessory business from $500,000 to $20 million in two years.

Despite this, Daymond John was concerned about their focus on hardware. He suggested licensing as a better path for the founders. This would let them focus on software instead of competing in the tough hardware market. Mark Cuban then asked about their software, and the entrepreneurs admitted they hadn’t developed any of their own yet. This raised more doubts among the Sharks about their ability to compete with giants like Apple and Samsung.

Shark’s Responses and Final Deal

The Sharks had mixed reactions to the Tanoshi pitch. Mark Cuban suggested that the company either needed to lower costs or raise prices to improve margins. He decided not to invest. Kevin O’Leary also passed. He pointed out the tough margins in the PC business and the challenges of acquiring customers. Kevin suggested licensing as a better option and declined to invest.

Anne appreciated the mission but saw the difficulties in reaching kids with the product, so she opted out. Lori Grenier agreed that licensing could work, but she didn’t see the business as a fit for her and also declined.

Daymond John saw potential in the licensing approach. He offered $500,000 for 20% equity, with the deal depending on securing a licensing agreement. Brad asked if they could continue using their brand, and Daymond agreed. Brad tried to negotiate the equity down to 15%, but Daymond held firm at 20%. In the end, Brad accepted the deal, securing Daymond’s investment and partnership.

Product Availability

Tanoshi can be bought from their official website and Amazon. According to the latest reports, they still only have a single product to sell to consumers. Tanoshi 2-in-1 Kids Computer is still on the website. It is retailing for its original price of $199 when it aired on the TV show.

Conclusion

Brad Johnston, Lisa Love, and Greg Smith asked for $500,000 in exchange for 8% of Tanoshi on Shark Tank. The Sharks appreciated their mission to make affordable educational tech for kids. However, they were worried about the tough hardware market. Most of them decided not to invest.

Daymond John saw potential and offered $500,000 for 20% equity with a focus on securing a licensing deal. After a brief negotiation, the team accepted his offer. With Daymond’s backing, Tanoshi had the opportunity to grow and reach more families with their educational products.