- Total Raise: $1,500,000
- Min. Investment: $5,000
- Interest Rate: 8%
- Conversion Cap: $4,500,000
- Conversion Discount: 20%
- Loan Term: 48 Months
WHO WE ARE
ClassWallet.com revolutionizes the way teachers get and spend money for their classrooms. Instead of dealing with cash, checks, and paper forms, teachers establish online accounts through ClassWallet.com. With ClassWallet.com, they can collect and manage money, shop for education products, and keep track of spending—all on one integrated platform.
ClassWallet.com was developed by Kleo™, an education technology company dedicated to improving education by advancing teacher access to critical resources.
THE BEGINNINGS OF CLASSWALLET.COM
Founder Jamie Rosenberg, 15 years experience in the space
- 1st venture – AdoptAClassroom.org, one of largest education philanthropies in U.S.
- AdoptAClassroom.org raised and distributed $25mm to 150,000 teachers
- Selected to participate in Techstars Kaplan EdTech Accelerator
Launched company under Kleo brand in Summer 2012 as SaaS technology model
- $4mm current gross transaction run rate
- Current strategic partners: Reading is Fundamental (largest literacy nonprofit in U.S.); Education foundations in 15th and 28th largest school districts in U.S.
- Technology partners include MasterCard, Verifone
- Ecommerce partners include Office Depot and Scholastic and School Specialty
Pivoted to direct-to-teacher model under ClassWallet.com brand. Launched July 28, 2014
WHAT WE DO
The suite of ClassWallet.com services is designed to help teachers get more money and make it easy for them to use the money in the most impactful and transparent way.
The ClassWallet: A single online e-wallet account where teachers can easily receive money from parents, donors, and administration and track, manage, and spend money without handling cash or paperwork.
Integrated eCommerce marketplace: Teachers can shop for innovative products without using cash or credit cards—the money comes right out of their ClassWallet.
CrowdFunding Tools: It’s easy for teachers and schools to post their needs online and for parents, friends, foundations, and partners to donate.
Data Tracking and Accountability: With funding and spending centralized in one ClassWallet, all activities are transparent and data is easy to track, aggregate, report, and analyze.
WHY WE ARE HERE
Smartboards, e-books, electronic notepads, and other technologies have transformed the classroom. But one area has been left behind: supplemental money for supplies, enrichment materials, and field trips is still handled with cash. Even small amounts of cash are cumbersome, hard to track, and subject to theft and fraud… a headache for teachers, parents, administrators, and funders.
ClassWallet.com brings efficiency, transparency and savings to a system that for years has relied on cash, checks, and brown envelopes for managing community funding.
- 80% of parents donate to at least one school fundraiser
- Product-sale fundraisers by schools and fundraisers net nearly $1.4 billion annually
- Billions of dollars come from corporations and foundations to support learning needs
- States have cut K-12 schools’ primary funding source: state aid
- The NSSEA reports that K-12 teachers pay $1.6 billion out-of-pocket on classroom tools
WHO WE SERVE
ClassWallet.com has stepped into a huge gap in education technology. More than a product, ClassWallet.com is a whole platform where all aspects of classroom funding and spending are handled electronically. When teachers establish a ClassWallet, parents and other funding sources such as education foundations, corporations, and government can easily donate, transfer, distribute, and deposit funds to classrooms online.
Teachers can then access their ClassWallet to shop through an integrated e-commerce marketplace, fund a reloadable prepaid debit card (coming soon), or transfer to another account holder. Because all transactions occur within one platform, all transactions are fully transparent and trackable.
Classroom-related, supplemental funding and purchasing
- Parent philanthropy ($2 billion)
- Corporate and foundation philanthropy ($1.5 billion)
- Teacher out-of-pocket ($2.5 billion)
- Parent out-of-pocket back to school shopping ($17 billion)
Adjacent to the $600 billion K-12 superintendent budget market
Mostly untethered to school administration
HOW WE MAKE MONEY
Two primary revenue drivers:
- Ecommerce reseller margins (average 18.5%)
- Debit card fees (transaction, annual and monthly fees)
Projected average spend per teacher: $475
- 7% penetration of $6,700 per classroom spend – significant upside potential
Projected average gross margin per teacher per year: $73
- Projected NPV per teacher (4 years, 1% monthly churn, net of customer acquisition costs): $292
Product roadmap and marketing designed to capture more use cases and more spend
Saves time and cost
- Collapses “funding-to-classroom spend” cycle from two months to same day; eliminates friction and administration costs
- No more cash, checks, requisition forms, or reimbursement
Funds go further
- Single platform connecting teachers and suppliers to a centralized B2C teacher-only marketplace (first of its kind)
- Multi-vendor single cart checkout
- Product curation, teacher only peer-to-peer reviews, sharing of best practices, etc.
Drives trust and accountability
- Funding and spend on same platform enables activity visibility to funders, parents and administration
Applicable in other verticals
- Youth and amateur sports leagues, larger K-12 procurement, philanthropy
High potential for explosive growth
- Viral, network effect as ecommerce marketplace becomes the “go to” for teachers and suppliers
- Potential for schools, PTAs, and foundations to adopt ClassWallet.com as default classroom funding platform
Strong strategic exit potential
- Financial tech looking for new distribution channels
- Ecommerce looking for incremental B2C revenue opportunities
- Education tech companies looking to monetize user base
MEET THE TEAM