Supercharger Ventures Edtech Accelerator - Program Details

Prior to the recent pandemic, educational technology (edtech) businesses often experienced extended periods without securing funding, largely due to limited interest from venture capital firms with broader investment focuses. However, over a year into the COVID-19 crisis, the edtech industry is demonstrating considerable progress, evidenced by initial profitability, the emergence of unicorn companies, potential public offerings, and an influx of skilled professionals.

Recognizing this growing momentum, SuperCharger Ventures, a cross-border venture capital firm, is introducing its first accelerator program specifically designed for early-stage edtech entrepreneurs. The 12-week program, beginning today, will be conducted remotely and features a select group of six startups in its inaugural cohort.

This initiative represents a shift for SuperCharger, as the firm has previously successfully run three accelerator cohorts centered on fintech startups. According to SuperCharger Ventures co-founder Janos Barberis, this transition is driven by a straightforward factor: the current state of banking.

“Banks are presently unable to dedicate resources to innovation initiatives,” Barberis explained. He believes that the pandemic created an imbalance between the availability of fintech services and the capacity of banks to adopt them, and with many bank branches facing challenges, “innovation is often the first area to see budget cuts.”

Consequently, the firm is focusing on edtech, applying a key insight gained from its fintech experience: the value of business-to-business (B2B) models and consistent revenue generation.

“A corporate focus provides stability, health, and dependable revenue,” Barberis stated. “It generates reliable income, and investors are currently prioritizing that type of income.”

From a financial perspective, Barberis’s point is compelling. However, many of the most highly valued edtech companies today, including Quizlet, Course Hero and ApplyBoard, primarily operate on a business-to-consumer (B2C) model. This is because, particularly in the United States, it can sometimes be more straightforward to sell directly to end-users rather than navigating the complexities of fragmented educational institutions.

Nevertheless, B2B businesses offer the greatest potential for widespread impact, and consumer-focused companies are increasingly translating pandemic-driven demand into enterprise-level contracts. Opportunities also exist in international markets, which often present less fragmented institutional landscapes, as Barberis points out.

In addition to B2B sales strategies, the accelerator’s participating startups will concentrate on expanding their reach into European and Asian markets.

Barberis identifies opportunities in these regions, excluding China, as both appear to have unmet needs in the edtech space. He notes a strong demand for corporate digital learning solutions from universities in Europe, and believes that fostering investor education is crucial to encourage investment in countries beyond China throughout Asia. He highlights the presence of both demand and the potential to cultivate demand.

He excludes China from the Asian market expansion strategy due to its already saturated market, comparable to the United States.

The accelerator program follows a standard model, with content specifically tailored to the education sector, such as guidance on establishing partnerships with educational institutions and streamlining sales cycles, which often occur during the summer months.

The firm does not provide direct funding but receives between 1-2% equity in exchange for its services, valued at an estimated $75,000 to $100,000. The program culminates in a Demo Day, with participating companies collectively aiming to raise between $15 to $20 million in venture capital.

Several other firms have launched similar accelerator programs during the pandemic to enhance their deal flow and maintain competitiveness in the active seed funding environment, including NextView Ventures.

This is not SuperCharger Ventures’ first experience with an accelerator program. The firm previously completed three fintech-focused accelerators, supporting a total of 49 companies. The shift to a new, thriving sector is a result of saturation within the fintech market, according to Barberis.

From a pool of 208 applications, SuperCharger selected six companies for its initial cohort:

• Axon Park: Founded by Taylor Freeman, Axon Park utilizes virtual reality technology to provide workforce training, such as instructing healthcare professionals on proper personal protective equipment (PPE) procedures. The company markets its programs to businesses, government agencies, and universities.
• BSD Education: Co-founded by Christopher Geary and Nickey Khemchandani, this startup offers technology curriculum to schools for students aged eight to 18. In addition to curriculum development, the company provides professional development for teachers and a platform for online learning.
• Dijital Kolej: Zeynep Dereli and Ferruh Gürtaş are developing an online hybrid education model that integrates both asynchronous and synchronous learning methods throughout the day.
• Newcampus: Launched by Will Fan and Fei Yao, this startup positions itself as a “gym membership” for learning experiences, focusing on leadership development and lifelong learning.
• Ringbeller: CJ Casciotta is building a startup that employs interactive video lessons to teach children essential soft skills, such as creativity and kindness.
• Roybi: Elnaz Sarraf and Ron Cheng are creating an AI-powered robot designed to teach children STEM subjects.