Wonderschool, a startup that provides software and support to help individuals and local governments grow childcare businesses, has acquired EarlyDay, which operates a marketplace for early childhood educators.
TechCrunch has covered Wonderschool since its infancy, including both its seed rounds and Series A (led by Andreessen Horowitz).
Terms of the deal were not disclosed, but in an interview with TechCrunch’s Equity podcast, EarlyDay co-CEOs Emma Harris and Melissa Tran described the transaction as “opportunistic,” saying it was not driven by fundraising needs. Wonderschool CEO Chris Bennett declined to share details on the structure of the deal, but hinted that it was executed for a non-trivial sum.
We brought Harris, Tran and Bennett on the show to discuss the deal, what’s next for their industry, the US child care problem and more. Tune in!
Back in early 2022, Wonderschool raised a $25 million Series B at a $165 million post-cash valuation, according to Crunchbase data. EarlyDay raised a $3.3 million seed round later in 2022.
Edtech and other startup categories have been overshadowed by AI over the past year or so, but there is still a huge market and need for better childcare and other early childhood services. Parents are concerned about the availability of childcare as some federal programs come to an end. Indeed, a quick search for “childcare crisis» will show you how anxious parents of young children are and how tight they are about financial choices.
If the Wonderschool-EarlyDay deal works out, we could see an increase in childcare provision. This would be good for both Wonderschool’s business and the parents who need the help.
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For the full transcript of the interview, for those who prefer reading to listening, read or view our full episode archive in Simplecast.
