Before the pandemic, edtech companies went decades without raising financing due to lack of interest from generalist venture capitalists. Now, more than a year since COVID-19 began, the sector is showing signs of maturation, from first profits to unicorns, potential IPOs and a rush of talent.
Momentum in mind, cross-border venture capital firm SuperCharger Ventures is launching a debut accelerator exclusively for early-stage edtech founders. The 12-week accelerator, which kicks off today, is being held virtually, with six startups in the debut cohort.
Interestingly, this isn’t the firms’ first time doing an accelerator. SuperCharger has led three cohorts of startups through a fintech-focused accelerator. The pivot from one booming category to another boils down to a simple dynamic, says SuperCharger Ventures co-founder Janos Barberis: banks.
“Banks just don’t have the space or the bandwidth to start dealing with innovation right now,” Barberis said. The co-founder thinks that COVID-19 created a supply and demand unevenness between fintech services and banks, and as many branches struggle to stay open, “the first thing banks cut is innovation.”
So, the firm is hopping to edtech, and taking a key lesson with it from its fintech experience: the importance of B2B and recurring revenue streams.
“The corporate angle? …read more