Some startups have problems attracting investors. While other startups are all too eager to go public, even before they have shown their true worth. And then there is EverFi – a bold, digital startup which aims to further education technology.
What makes this Washington, D.C. based Saas education tech company unique is that it is not in the business in order to go public. So far, it also has no problems attracting investors. The latest group of investors included Rise Fund, as well as U2’s Bono.
“We’re really trying to prove that you can build something that does incredibly meaningful work in schools but also be a really great software business,” EverFi’s Chief Executive Tom Davidson, was quoted in a Washington Post article. He added: “Those historically have not gone hand in hand, but we’re trying to prove that it’s possible.”
Simply put, education tech is the use of various traditional and non-traditional methods in order to further education in its many forms. Yahoo reported that EverFi is involved in providing online courses for alcohol safety, sexual assault prevention, as well as corporate concerns. It recently broadened its market to include companies, non-profit organizations, and sports teams. These companies pay fees that can go as high as $1 million a year. With a few thousand customer companies, EverFi has a bold reach in excess of 16 million members.
So far, EverFi has recently raised an additional $190 million. This has put its total investment funding at $251 million which is a lot of money for a startup. With the cash at hand, EverFi intends to bring in smaller education technology companies to further broaden its scope. It recently bought LawRoom and Workplace Answers, two education technology companies which are involved in corporate compliance. The latest funding will most probably be used to acquire like companies for a longer and wider reach into potential corporate customers. Other plans include a bold new project to combat opioid abuse.
The traditional route of startups is to go public as soon as it has shown that it has a revenue stream. This is also the main criteria for most venture capital funding. However, in this case, EverFi has no plans to do that. Instead, it continues to raise funds in order to boldly fuel its own growth. This also keeps management focused on the company goal, and not on the satisfaction of shareholders who invested due to the profit potential.