Blackbullion, an England-based financial edtech platform, announced recently that it has raised £2.5m in an oversubscribed funding round led by Calyx Venture Fund, with the participation also from existing investors Lord Stanley Fink and MPA Education.
It is Blackbullion’s third round of funding, the edtech previously closed two deals of seed round with the amount of £545,000 £400,000 in January 2018 and May 2019 respectively.
According toVivi Friedgut, Blackbullion’s founder and CEO, the latest funding round should give the company enough runway to get to a Series A round, which is currently planned to take place within 12 to 18 months.
The company will use the investment to scale product development and to fuel a new round of hiring. The team, which is currently made up of 15 people, is expecting to double in size over the next few months.
Founded in 2014, Blackbullion’s tech platform is introduced into student support departments to help with fund distribution. The startup partners with universities to provide students with financial skills training and information on resources they might be eligible for, such as bursaries and grants. It Partners include Imperial College London, the University of the West of England, UA92 and Central Queensland University.
“The bank of mum and dad is now starting to be tapped out,” Friedgut said. “Helping people to understand money and manage it well is really important, but a lot of students don’t have enough. And so we’re spending quite a lot of our time and our effort on making sure that funding, whether from universities or externally, is easily available.”
She said that it has been “tough” raising funding amid a market downturn and that it took “months longer” than initially anticipated.
“It’s been a really tough environment, we see much larger companies than ours shedding jobs and dropping their projections,” Friedgut explained.
“We’ve never been a kind of ‘look at us, a million users and raise 10 million in order to get them’, we’ve always been about solid unit economics, sustainable growth.”