Purdue U contract raises EduNav committed ARR to $2.8M
5-year deal confirms startup's impact on $200B college dropout rates
- Platform reducing $200B annual cost of college dropouts on track to double revenue in 2022
- 5-year contract with Purdue U raises committed ARR at end of Q1 2022 to $2.8M
- Pilot with historically Black colleges to address equity gap issues in higher education
- Up to $5.5M note round (including $2.6M previously received under the note) with participation of Learn Capital and Opus Capital
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Dear Josb,
Some $200B is wasted every year on the 40% of US college students who drop out. Colleges risk losing public funding if they cannot reverse this trend.
OurCrowd is reinvesting in EduNav, a Silicon Valley-based company that provides AI-driven planning and optimization tools that help colleges and universities substantially reduce high dropout rates. The details in this email are based on information received from, and verified solely by, the company.
EduNav's SmartPlan software uses big data, combinatorial algorithms, and machine learning to create optimal education plans with the shortest path to graduation, personalized for each student.
One community college that has struggled with very low completion rates more than doubled graduation figures from 14% to 31% using EduNav's software. Other customers report dramatic increases in student persistence, average credits per term, advisor planning efficiency, and reductions in wasted credits and shorter times to graduation.
EduNav has seen dramatic revenue growth despite Covid challenges: ARR at the end of 2021 increased 73% from the end of 2020. The company projects 100%+ growth in 2022.
Since OurCrowd launched this investment in February, EduNav reports the following developments:
Committed ARR reaches $2.8M: EduNav's committed ARR at the end of Q1 2022 was $2.8M, placing the company on track to at least double its revenue by the end of the year.
5-year contract with Purdue University: EduNav was selected over a large number of vendors after a 9-month proposal process to provide a new platform to help students plan their degrees by Purdue University, a pre-eminent EdTech innovator in the US. Purdue says the EduNav platform, part of its Transformative Education 2.0 initiative, will help students to successfully reach graduation.
Pilot with historically Black colleges and universities (HBCUs): HBCUs are particularly prone to high dropout rates. EduNav will work with two HBCUs in a pilot funded by the Ascendium Foundation and supported by the Partnership for Education Advancement. The initiative will help to address equity gap issues in higher education.
Success Pathways: EduNav is working with customers on Success Pathways, a highly innovative and technology-rich solution to develop the best and unique academic pathway for each student.
Unified digital transcript: EduNav is discussing its new unified digital transcript solution with half a dozen US states. EduNav's unified digital transcript is uniquely positioned to help streamline the student transfer process, impacting up to two million students in the US each year.
The round
Pandemic-induced headwinds in higher education have created an opportunity to invest below EduNav's 2019 valuation despite the company's strong growth.
EduNav is raising a Note instrument with a $20M cap at a 20% discount, with participation from Learn Capital, a venture platform focused on educational technology, and Opus Capital, a venture fund with more than $1B under management.
Proceeds from this round will be used to scale sales and marketing, and for continued R&D investments to support new products.
Meet the CEO
Watch an investor Q&A with CEO Andrew Brown and learn more about EduNav.
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