Pearachute on Shark Tank Gets Customers To Invest $25,000 Each
by 2Paragraphs in Business Spotlight | October 29, 2017 Desiree Vargas Wrigley of Chicago, Illinois is the savvy entrepreneur behind Pear...
20% MoM user growth, 490% increase in available classes and spot each month, 60% reduction in user churn since January.
$100B and growing market opportunity.
Backed by Techstars Ventures, Chicago Ventures, the founders of OKCupid, HotelTonight, SitterCity, and more.
Loved by partners: fills classes, increases revenue, and builds long-term memberships.
We were so thrilled and flattered by the outpouring of investment from the Republic community in our last campaign, raising just under $250K, nearly 5X our initial goal.
In just 7 months, a lot has happened on the platform and with the valuation of the business. After our Republic campaign we closed our Seed round, raising just under $2M from our existing investors, we hired a full stack tech team, launched the first versions of our iOS and Android apps, launched San Francisco and acquired a competitor in Washington, D.C.
We've reduced churn to the lowest in the industry, one month getting as low as 1.8%. We continue to profitably acquire customers, maintaining a consistent customer acquisition cost for nearly 10 months, and our CAC to LTV ratio is 1:6.
But most important, we've discovered with confidence that we've created a product that people love, that brings families closer together and fuels local businesses.
At Pearachute, we believe parents and children should spend more time playing and less time planning. But parents of children under 5 face a dilemma. We want our children to discover new activities they love, so we sign them up for art, swimming, music, and soccer.
But by the third visit, our 2 year old is crying in the corner or refusing to get in the water, and they still have 9 sessions left that can’t be refunded.
Unfortunately, the family activity industry is out of touch with today’s parents. Activity centers are poorly marketed and lock parents into expensive 10-12 week sessions for children too young to know what they like.
This is why we created Pearachute.
Pearachute is a monthly membership club that makes it easy for parents and caregivers to discover, book, and drop into the best family activities in your city all at the touch of a button all for one affordable rate.
Parents choose from three, six, or unlimited classes each month on PearachuteKids.com
Immediately, they can begin searching from the thousands of family friendly activities all over the city. They can even filter by their child’s age or interest.
Parents simply select a class, click “drop-in,” and select who will attend. Then they’re ready to play! It’s that easy!
Activities range from arts & music, to dance, to learning & development, to storytime, to sports - we have activities to suit the whims of any child.
Pearachute is the first comparable product to launch in multiple markets, and our solution provides more flexibility for our users and more convenience and better usability for our partners.
Each year, American families spend $32B on kids’ activities and millions of that is wasted in unattended classes because of changing nap schedules, runny noses, and surprise visits from Grandma. When you include family entertainment like movies and live performances, that number jumps to $100B each year.
And this market is only going to get bigger.
We make our revenue through subscriptions of $39, $79, and $199 per month depending on which plan our members select.
We pay our partners a discounted drop-in rate each time a child attends a class or activity.
Our margins average 24-45% across all products and markets.
We profitably acquire every single member.
Q4: adding the ability to book birthday parties through Pearachute. Upgrading our native iOS and Android apps.
Q1: Launching the new Pearachute native apps. Adding the ability to book birthday parties.
5x user growth in Chicago, Dallas, Kansas City, SF, and DC
Proving the scalability of our market launch playbook.
When I had my first son, Griffin, I was one of the first of my friends in Chicago to have a baby. I didn’t have a group to turn to get advice, and it wasn’t until my son entered daycare that I even realized I could sign him up for classes. At that point, I had missed the registration deadlines and ended up with an 8am soccer class that I ended up skipping because we couldn’t get out the door. I ultimately canceled and decided to try swimming, which was across the street. But after my second son, Aedan, arrived, I found it even more difficult to make it to scheduled classes. I thought there had to be a better way. I order my groceries, diapers, and coordinate my babysitters from my phone, why couldn’t I manage our recreational life as a family that way too?
So, with the help of an amazing team, we created Pearachute to make it easier and more affordable for families to discover and enjoy activities they all love.
For my family, the impact has been incredible. As a working mom/stepmom, Mondays are easier when I’ve taken the time to be truly present with my children as we play with clay or dance around a music class. And as a passionate promoter of entrepreneurs, I couldn’t be prouder of the fact that we’ve generated nearly $200,000 in revenue for local business owners.
I hope you’ll join us in bringing Pearachute to so many more cities with parents eager to spend more time playing and less time planning and business owners looking to connect with the families in their communities.
Founder & CEO: Desiree Vargas Wrigley
Prior to launching Pearachute, Desiree founded one of the world’s first crowdfunding platforms, GiveForward. After Yale, she worked at the Kauffman Foundation, where she discovered her passion for the impact entrepreneurship has on our communities.
Chairman: Sam Yagan
Sam is best known as the co-founder of OkCupid, and in 2013 was named to Time Magazine’s “100 Most Influential People in the World” list. Sam also serves as the Vice-Chairman of Match.com.
Board Member: Paul Lee*
Paul is a general partner at Builders VC and the CEO and co-founder of Builders Studios. As a former general partner at LightBank, Paul led investments in several successful internet firms, such as Udemy, CoffeeMeetsBagel, ElaCarte, Talentbin, Cleversense, and Contently. Paul also serves as an Adjunct Lecturer of Entrepreneurship at Northwestern’s Kellogg School of Management.
*Paul's role on the board is as an observer, he has no managerial or voting rights.
Our team is a group of women passionate about making life easier for parents and more fulfilling for children. Among us, we have over 35 years of early stage start-up experience and nearly 30 years of mother and caregiver experience. We understand both sides of our market, and we are thrilled by the impact we’re having on both.
Our current investors include individuals and firms with long histories of success, both as investors, and as entrepreneurs themselves. They provide consistent guidance, insight, and support to help Pearachute achieve profitable, sustainable growth.
Inspiring Children’s Curiosity and Passion.
We strive toward this mission by empowering parents and caregivers through convenience and choice. To us, this means making the best kids’ classes and activities available at the touch of a button, allowing parents to drop-in and explore during times that fit their schedule with the flexibility to accommodate late naps, stuffy noses, and unplanned visits from grandparents.
Strengthening Local Businesses.
Pearachute is not just about the bond between children and the people who care for them. We work closely with our partners to help them identify new ways to engage with their neighbors and grow their business.
Supporting Women Entrepreneurs.
The vast majority of our partners are women owned and operated businesses, started by founders who took their passion and created value for their local communities. A big part of our vision here at Pearachute is strengthening those businesses so they can continue to do the work they love in a sustainable way.
One of the main reasons we’re partnering with Republic is to empower women to invest in each other. Our hope is that these women owners contribute to and benefit from the successful outcome of Pearachute.
- Desiree Vargas Wrigley, Pearachute Founder & CEO
Receive a 50% discount on any Pearachute plan for one month.
Receive one 5 Credit Flex Pack or select between a Pearachute T-Shirt or water bottle
Select a Pearachute T-Shirt or water bottle and receive a $50 gift card for the app.
Receive a T-shirt, water bottle and a $100 gift card for the app.
6 months of the Everyday Play plan and a T-Shirt and water bottle.
12 months of the Everyday Play plan, T-Shirt, water bottle, and a social media shout out!
A role on the advisory board and 12 months of the Everyday Play plan, T-Shirt, water bottle, and a social media shout out!
Limited (2 left of 2)
Our simple, intuitive platform, as well as our unique market development playbook have allowed us to quickly scale both our partner relationships and user-base beyond our home market, and we have our eyes set on further expansion. Our team and board also bring decades of experience to the table, and know how to effectively address unmet needs in the market.
We operate a subscription model, whereby users pay us a monthly subscription fee of either $39, $79, or $129 for access to the classes and activities offered through Pearachute. We then receive a discounted rate from our supply partners on the courses they offer to our users. Our margins average 29% across our three product tiers.
We have both growth and product-specific objectives we're working towards. On the product side, we're looking to make significant improvements to our supplier facing product, the Partner Portal, which will further ensure that we have amazing inventory to offer our users. We're also building our native mobile app, as well as integrating the ability to book birthday parties and seasonal camps through Pearachute. On the growth side, we're aiming to achieve 5x user growth in our core markets, prove the scalability of our market launch playbook, and improve attrition, average revenue per user, and daily active users through better inventory and continuous product improvement.
Pearachute is a platform that enables parents and caregivers to discover, book, and drop into the best kids classes and activities in the cities in which they live. Pearachute enables our provider partners to connect with new customers and grow their businesses.
No, he did not.
In June 2016, Pearachute and one of the investors (Sharks) on ABC's Shark Tank series agreed to a preliminary deal during filming. Unfortunately the deal terms were more complicated than what was edited and shown to the television audience and the deal fell through in August of 2016.
I use pearachute and believe in what they are doing. I would love to see it offered in more locations and maybe even worldwide.Jennifer ChuInvested about 21 hours ago
We use Pearachute daily and believe it is a great company and it’s growth has great potential. We’re excited to support a company that has helped our daughter grow as she gets to experience many different classes in Chicago!Erin BusseInvested about 23 hours ago
It's a great program that allows not only kids to have fun but the parents to have fun too. Easy access to great fun.Becky GoodrichInvested 1 day ago
I believe there is a need for a platform like this.Chan BektiInvested 1 day ago
I support Desi and I think this is a fabulous idea.... im just hoping more options become available in Kansas City! (I wish I had this when I lived in Chicago!) Go Desi!Rachel RilingerInvested 1 day ago
This is an amazing startup with an even better Chicago founder! This is one to watch...Christopher DeutschInvested 3 days ago
Pearachute is a great company on a high trajectory path with all the right metrics and a founder that is phenomenal leader and entrepreneur.Rachel WilliamsInvested 5 days ago
Younger generation is the future of our country education starting Young will create genius Minds.James BunchInvested 6 days ago
It seems like socially valuable and good for public heath which leads to the more better societyTomoyuki EnomotoInvested 7 days ago
Great idea, good ownerTerrence BattleInvested 8 days ago
It looks like it has a great potential future.Ron RushInvested 8 days ago
Great concept!Paul GravesInvested 10 days ago
Loved the idea, very well thought out, great presentation, and I believe it fills a strong need where I can make money.Patricia ShawInvested 11 days ago
Addressing a problem that parents are willing to pay for with a solution lead by a quality team, while helping kids learn and get better.John MuellerInvested 11 days ago
Believe in the idea and its potential.Claudia YefremianInvested 11 days ago
because the other investors I know in the deal are smart!Mike SmithInvested 11 days ago
Great concept!Joel SourekInvested 14 days ago
I invested because I think this is a good product with a promising future. It is a product I would use my self when the time comes.James SandersInvested 15 days ago
It is a great idea !Cyrus KhanInvested 15 days ago
i like what is they have provenrudolf ilichInvested 16 days ago
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