At Kli Capital, we focus on backing companies with the potential to make a significant impact on society while also achieving sustainable financial growth. Our recent investment in Familify Corp, the company behind the Storybook App, is a perfect example of this philosophy in action. The Storybook App is a wellness and sleep application designed specifically for parents of children aged 0-12, combining guided bedtime stories, calming music, and relaxation techniques to foster emotional well-being and better sleep. We believe that Storybook’s unique approach to wellness has the potential to redefine how parents engage with their children’s emotional health and sleep routines.
Addressing a Major Gap in Child Sleep Solutions
A staggering two-thirds of children under the age of 10 suffer from sleep issues, a problem that impacts their brain development, emotional health, and immune systems. Current solutions often overlook the importance of the parent-child bond in overcoming these challenges. Storybook offers a novel solution by focusing on creating parent-led, screen-free bedtime routines that integrate calming techniques and emotional bonding through massage, narrated stories, and music. This holistic approach not only helps children sleep better but also strengthens the emotional connection between parents and children, a key aspect of long-term mental and emotional health.
Proven Product with Strong Market Position
Since its launch in 2020, Storybook has achieved impressive traction. The app boasts over 3.5 million downloads and tens of thousands of active paying subscribers across 155 countries, with a particularly strong presence in North America, Latin America, and Asia. Storybook has maintained an excellent reputation with over 30,000 5-star reviews. This widespread adoption, coupled with a 59% quarterly sales growth, speaks to the product's effectiveness and the strong demand for wellness apps focused on children and family bonding.
The company has strong unit economics, and with a subscription-based model priced at less than $60/year in the United States, Storybook has a clear path to sustained revenue and subscriber growth.
Innovative Business Model and Expanding Partnerships
One of the key differentiators of Storybook is its blend of B2C and B2B strategies. The company’s freemium model allows parents to access limited content for free, with the option to upgrade to a full subscription for expanded features. Storybook has also expanded its reach through partnerships with organizations like Esteem Health, United Way Colombia, and World Vision Ecuador. These collaborations bring the app to vulnerable families and schools, creating a cycle of impact while also opening new revenue streams.
Strong Team with a Vision for the Future
The team behind Storybook is another key reason we are excited to invest. Francisco Cornejo, the CEO, brings a wealth of experience as a seasoned entrepreneur with prior exits and leadership roles, including as the CMO at Honda Ecuador. Co-founder Daniela Vega, a Certified Infant Massage Educator and published children’s author, provides the deep expertise needed to build a product that is both scientifically sound and emotionally impactful. The team’s unique combination of business acumen and domain expertise in child wellness positions them to scale Storybook successfully.
Strong Market Opportunity
The global mental health and wellness market is projected to reach $200 billion by 2026, with increasing demand for solutions that focus on both physical and emotional well-being. Storybook is well-positioned to capitalize on this growth, especially with its focus on the underserved segment of family wellness. In addition, the rising adoption of digital health tools and the expanding global sleep economy further enhance the company's prospects.
Our investment in Storybook is not just about financial returns—it's about supporting a company that is genuinely improving the lives of families. By addressing the critical issue of sleep and emotional health in children, Storybook has the potential to redefine the family wellness category. With a proven product, strong financials, and an experienced team, we believe Storybook is poised for long-term success and is well-positioned to scale both in terms of user base and impact. We are excited to support their journey and look forward to their continued growth.
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