"You've complicated this to no end" - When Shark Tank investor Mark Cuban rejected Goalsetter

Mark Cuban answers questions as part of the Harris-Walz campaign in Georgia - Source: Getty
Shark Tank investor Mark Cuban (Image via Getty)

Tanya Van Court entered the Shark Tank in season 10 episode 15, seeking $200,000 for 4% equity of Goalsetter. The financial technology platform targeted youth banking with a $5 million valuation. Van Court presented multiple revenue streams. A $1 fee is applied to each gift card transaction, along standard transactions cost 5 cents. Partner banks contributed 1% of managed assets.

The company had raised $2.1 million before the show but reported $40,000 in sales. Customer acquisition cost stood at $10 per user. After examining the business model and hearing the complete pitch, Mark Cuban addressed Van Court. He said:

"Aspirationally it makes perfect sense. If you just said 'Look, it's hard to open up a bank account for your kids, do it here,' you'd have no overhead. That's an easy business. You've complicated this to no end…I appreciate what you're trying to accomplish, but I'm out."

In the end, the entrepreneur left the Shark Tank without any deal.


Shark Tank season 10 sees Mark Cuban walk away from Goalsetter banking app

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The Goalsetter system works through multiple components. Parents open savings accounts for their children. The platform featured specific savings targets like college funds or large purchases. A "round-up" function automated regular deposits from parent accounts. Family members could give money through specialized "GoalCards."

Each card directed funds to pre-selected savings goals. The Shark Tank company maintained FDIC insurance on all accounts. Children above 13 could manage their accounts independently.

Van Court explained the revenue structure to the Sharks. Every gift card issued earned the company $1. Standard transactions brought in 5 cents each. Banking partners shared 1% of the money they managed through the platform. The company aimed to expand these partnerships to increase revenue streams. Marketing focused on both parents and financial institutions.

Each Shark Tank investor assessed different elements of Goalsetter. Lori Greiner stepped out first. She mentioned the early stage of development as her main concern. Daymond John liked the physical gift cards but chose not to invest.

Kevin O'Leary showed enthusiasm for the financial aspects. He made a firm offer of $200,000 for 25% ownership. Van Court responded with a 9% counteroffer. O'Leary declined this proposal immediately. Jamie Siminoff shared his experience with turning down offers. The negotiations concluded without a deal.

Cuban concentrated on the basic function of youth banking accounts. His questions targeted the company's cost structure. Cuban pointed out that direct bank accounts would reduce expenses.

The multiple features bothered him. He stated that adding gift cards and educational content made simple banking too difficult. The platform needed many steps to complete basic functions. Cuban ended his evaluation by highlighting that youth banking should stay simple.


Post-show growth

Goalsetter maintained its strategy after the Shark Tank appearance. As per the SharkTank blog Van Court kept the core business model intact. The company focused on expanding banking partnerships. Goalsetter's development accelerated in 2019. The platform reached 20,000 active users.

In January 2021, the company secured $3.9 million in seed funding. NBA stars Kevin Durant and Chris Paul joined as investors. Robert F. Smith, chairman of Vista Equity Partners, also supported the funding round. February 2021 marked a significant shift. Mark Cuban changed his stance on Goalsetter. He partnered with the company for their "Drafted" program during Black History Month.

The NBA Players' Association joined this initiative. The project aimed to provide bank accounts with $40 starting balance to one million black and brown children. Nike contributed $1 million to support this goal.

Forbes named Van Court to their Next 1000 list in 2021. Inc. Magazine featured her among 100 Female Founders in 2022. By July 2024, annual revenue reached $4 million.


Shark Tank season 16 is airing on ABC network.

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Edited by Ameen Fatima
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