Brisbane-based video streaming startup ParentTV have signed a game changing 3 year deal with ASX 200 listed early education and child care provider, G8 Education, which will increase their subscriber base and set them up for global growth.
After losing a critical investment in 2019, Graeme Wise, founding investor of ParentTV who also brought The Body Shop to Australia, offered up a $500,000 convertible note on the condition that ParentTV founder Sam Jockel, turn all of her attention to building the business and increasing revenue. Wise’s belief was if Jockel could free up time from raising capital to focus on revenue ParentTV would end up in a similar financial position and one year on it seems that Wise was indeed very wise. Funnily enough, it only took $250,000 of the $500,000 to get ParentTV to the game changing revenue deal that would lead them into the future.
The deal with G8, which has been under negotiation for a year, will offer ParentTV for free to the 40,000 families and 11,000 staff who attend G8’s 475 centres around Australia.
Founder and CEO, Sam Jockel, is a rare female tech entrepreneur who used her knowledge and experience running the 600,000 strong social media community (Aldi Mum and School Mum) to create a world first video streaming service offering expert advice to families.
It was the close association with mothers, many of them swamped with advice of dubious merit, that led her to develop ParentTV last year, with financial support from Graeme Wise, the entrepreneur and investor who brought The Body Shop to Australia.
“Having G8 endorse us and work with us is a massive indicator to investors that we are onto something that the market is prepared to pay for” says Jockel.
“That is a big deal in start-ups where everybody celebrates investment in the hope that you will produce something of value. The G8 deal is about a large and reputable corporate entity actually purchasing what we have to offer.”
Partnership with an ASX 200 listed child care operator provides ParentTV with the financial security to scale up the offering while providing proof of market to future investors.
G8’s Head of Education, Julie Madgwick, who has been driving the partnership sees ParentTV as a significant value-add in the highly competitive early education and care sector.
“Families see our educators as partners in raising their children but often they are grappling with issues that require specialist expertise to resolve. Parent TV provides us with a tool to not only assist our parents but also to help inform our own educators,” says Ms Madgwick.
“The G8 deal had big implications for us from a tech point of view. We had to go to scale very quickly and G8 had to be satisfied that we could service their 40,000 families and that our tech was secure and reliable”, says Ms Jockel.
“I always believed we had the potential to go global and having geared up for G8 we are now in a position to chase that opportunity more aggressively”.