Some startups have problems attracting investors. Meanwhile, other startups are all too eager to go public, even before they have shown their true worth. And then there is EverFi Inc.—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. With the latest group of investors that includes Rise Fund, as well as U2’s Bono, has made its move, it’s no doubt that an EverFi investing trend is not an impossible case.
“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 Chief Executive Tom Davidson states in a Washington Post article. He also notes, “Those historically have not gone hand in hand, but we’re trying to prove that it’s possible.” Simply put, education technology is the use of various traditional and nontraditional 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, nonprofit 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.
Other Details Related to EverFi Investing
So far, EverFi has recently raised an additional $190 million. This fact has put its total investment funding at $251 million—which is a lot of money for a startup. With cash in 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 similar 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 factor 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 strategy also keeps management focused on the company goal and not on the satisfaction of shareholders who invested due to the profit potential—or simply joined the EverFi investing trend.