In 2019 Dane Witbeck had an issue acquainted to folks: What have been his children doing on their smartphones?
That drawback grew to become his motivation to launch Pinwheel, an Austin, Texas-based vendor of Android telephones with parental controls for apps, utilization limits, monitoring, and extra.
Quick ahead to 2026, and Pinwheel is flourishing and worthwhile. In our current dialog, Dane shared his firm’s manufacturing course of, advertising ways, financial mannequin, and extra.
Our complete audio is embedded under. The transcript is edited for readability and size.
Eric Bandholz: Inform us what you do.
Dane Witbeck: I’m a founding father of Pinwheel. We offer Android-based smartphones for youths with parental management software program. There’s lots we are able to do with Android that we are able to’t with Apple.
I’m a dad with 4 children. I began Pinwheel about 5 years in the past to assist with the smartphone drawback, which most dad and mom are conscious of.
Our clients purchase the cellphone, the precise {hardware}, by us, although Samsung, LG, or Motorola makes it. We embed software program deep into these gadgets. It’s baked in from the get-go, and so the setup is on us, not our patrons.
The cellphone is protected and simple for youths to make use of. Mother and father can add to it over time as their children mature, reminiscent of extra apps, content material, and permissions.
We purchase telephones wholesale in bulk from these producers. They’re our distributors. We’re the shopper, however we take it on ourselves to set them up for youths, closing any loopholes.
For instance, we’ll purchase Samsung Galaxy A17 telephones and put together them utilizing a course of able to producing hundreds of items per thirty days. We’ll repackage them a bit with directions. Mother and father can entry the telephones and see what’s occurring with them, together with the apps.
Bandholz: How do you construct relationships with an organization like Samsung, LG, or Motorola?
Witbeck: It’s not that arduous. They’re within the enterprise of promoting telephones. I’ll say, “I wish to purchase a thousand telephones.” Usually, they’ll ship a brand new buyer to a channel accomplice, reminiscent of a wholesaler. It doesn’t make a lot distinction whether or not you’re employed immediately with them or with wholesalers. Each supply traces of credit score with net-30 phrases.
We can’t dictate what they placed on the cellphone. We get what comes with the system. A small Chinese language producer may need a thousand variations of Android telephones. We might actually dictate software program from these firms, however in our expertise, there are every kind of bugs with the {hardware}. Shopping for from Samsung, LG, or Motorola eliminates a complete bunch of issues.
Bandholz: What are Pinwheel’s economics?
Witbeck: We’re a hybrid ecommerce mannequin. We have now similarities with ecommerce firms in how we market and promote to clients, together with checkout and retargeting. However we’re additionally a software program firm. Subscriptions drive the enterprise. That’s what traders search for and the way we construct worth.
Initially we bought the telephones and the software program subscriptions. Clients selected their mobile plans individually. We did that for a few years earlier than including mobile as an possibility.
So now, throughout checkout, clients can purchase the cellphone with their very own mobile plan or ours. Roughly half use ours. We’ll present a single invoice unified throughout mobile and software program subscriptions.
Bandholz: How do dad and mom handle the system?
Witbeck: We offer an app for Android telephones, iPhones, or internet browsers. Mother and father log in to any of these locations and entry instruments reminiscent of deciding on apps, permissible instances of day, and utilization limits. Mother and father can ship chore lists on to their children’ telephones, assessment their children’ textual content messages, and even arrange monitoring for phrases or phrases.
Bandholz: You’re stepping into landlines for youths, a brand new product.
Witbeck: Sure. We name it Pinwheel Dwelling, a contemporary tackle a landline. We’re very excited. As dad and mom, we’ve given cell telephones and smartwatches to a era of children, basically encouraging them to speak over textual content messages somewhat than voice.
The result’s that youngsters have no idea methods to have conventional voice conversations, which is wholesome for people. We have to discuss to one another.
But we don’t need our youngsters speaking on a cellphone at 1:30 a.m. after they should be sleeping for his or her check tomorrow. With our new landline product, dad and mom can place limits on the time of day, contacts, permitted inbound numbers, and extra.
We’re transport these this month. There’s a competitor referred to as Tin Can, an ideal firm. We’re going to concentrate on options that aren’t on Tin Can. One is scaling throughout ages higher. Plus, ours is a two-part system with a VoIP terminal and telephones that plug in to it.
Bandholz: You talked about traders. What’s your considering for elevating exterior funds?
Witbeck: I attempt to let the market information these choices. There’s no should be opinionated in some way relating to bootstrapping or tapping enterprise capital. Are you able to create extra worth with the capital? What sort of capital?
We raised some cash initially and stopped as soon as we reached profitability. We’ve been worthwhile for 2 years. There’s an enormous alternative forward of us that we can’t totally seize until we elevate more cash. So we’re again to the capital markets for the primary time in a number of years.
I’ve been on each side of funding. I raised cash, and I’ve funded about 25 startups as an angel investor. I’ve discovered classes alongside the best way.
First, for entrepreneurs looking for capital, ensure you know the weak spots in your pitch. Know the objections and have solutions for these earlier than sitting down with VC prospects.
And don’t take rejection personally. It may very well be that an investor doesn’t have the cash, however he’s stating another excuse for not collaborating. It may very well be the sector or a nasty expertise with the same funding. So be prepared for “no” 100 instances till you get a “sure.”
Bandholz: The place can individuals purchase your telephones, assist you, and attain out?
Witbeck: Our website is Pinwheel.com. We’re additionally on Instagram and Fb. I’m on LinkedIn.
