The EdTech business models – both educational apps for kids and organizational learning – have shaped up to be one of the most lucrative (for entrepreneurs) and luring (for investors) models of businesses over the years.
Schools, universities, coaching institutes, etc, faced enormous challenges during the Covid-19 pandemic. This led to the increase in scope of education. To ensure business and learning continuity, the learning class had to swiftly upload all of their work on the internet, making access to education easy.
We recently met the founder of an EdTech company who was seeking our assistance in getting funded for the series B round. Their company was already doing well but they wanted to take it to the next level and scale growth and we knew we had to target late stage venture capital financing and venture capitals (VCs) for the series B round.
“Just when the EdTech industry was thriving, our clients presented a revolutionary idea that could be leveraged by the masses. Their vision was to make digital education for the kids to be exceptional. They understood the current issues and loopholes and added features they thought could help the children get a better learning experience. We were sure that the one of a kind company would get interest hits from a number of investors.” – Ash Narain, Founder, Marquee.
I hired Marquee after having conversations with their team over several months. There were some indications along the way that they were honest, eager, and knowledgeable. I also thought they had what I needed, which was namely access to several thousand potential investors. My account manager, Shaurya David, has been exceptional. He is providing a steady stream of new leads and several have already materialized in what I can only say is a rather short amount of time. I have come to rely on the Marquee team and the outreach they provide now as a major source of my leads.
Jonas Schaefer, Founder & Managing Partner, Corinth Capital Partners
We believe that EdTech is one of the few industries that was able to survive the COVID-19 pandemic and honor its promising growth. What makes us say that? Let us walk you through some numbers to give you a better understanding.
- The global education technology market size was valued at USD 89.49 billion in 2020 and is expected to witness a compound annual growth rate (CAGR) of 19.9% from 2021 to 2028.
- The global digital expenditure in the education industry would be worth $341 billion by 2025 as per HolonIQ – a contributory factor behind the rising of education startups and kids education app startup ideas.
- During the first six months of 2021, U.S.-based education technology companies raised over $3.2 billion in investment capital.
The opportunities in Edtech are countless and will continue to increase with time. It is a sector where the opportunity cost to miss out on an idea could be zillions. So, we were glad that company was on a growing trajectory but when the team reached out to us, we wanted to approach the next steps very systematically.
“Our team is passionate about improving the learning experience for students from classes k to 12, after all knowledge is power. We reached out to the Marquee Equity team because we needed help during the series B funding round and the team was able to assist us with this pain point and more. We were beyond impressed with the work Marquee put behind the investor outreach. The team helped us in immeasurable ways!” – Founder, EdTech company.
When the EdTech team reached out to us, they were looking for a series B funding round of $7 million and they wanted to raise funds within 5 months.
Our first task was to understand the current business model and the next steps the company wanted to undertake. Once we had the required data in place, we initiated the investor outreach program.
We deliver 50 to 600 investor engagements on each deal, depending on the outreach plan one chooses. We reach out to an effective scale of massive investors all over the world for raising capital for our clients. After an AI-driven matchmaking session from our database of over 30,000 investors we made a list of most suited potential investors. Further, we started with the email and call outreach campaign.
After finishing the campaign, paperwork and documentation on our client’s behalf, our emails were filled with responses seeking pitch decks and for scheduling a call with the firm’s founders.
Once we entered the discussion stage, it took 5 months to raise the $7 million worth of funds in the series B round. Company will use those funds to improve the learning experience and its features and market it to a larger audience.
Our work speaks for itself and we are proud of it.
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