NEWS: Angel Investing Group Looks to Turn School Data Into Gold
Schools these days tend to be data-rich but information-poor, leaving educators scrambling to gain access to information they need to tailor instruction to individual students, who can suffer as a result.
A startup looking to change that scenario developed a cloud-based software platform that consolidates all of a school district’s data into one place. And, it’s piqued the interest of Tech Coast Angels investors.
TCA OC members have invested $250,000 in MIDAS Education, an acronym for Massively Integrated Data Analytics System. And TCA’s ACE Fund has committed another $100,000.
MIDAS Education, with HQ in Seattle, enables school districts to replace up to 17 siloed software packages with one integrated platform, allowing educators to focus on individualizing instruction.
Megan Harney (CEO) and Patrick Leonard (COO) launched the company in 2016.
Harney has invested $750,000 of her own earnings and investments. The startup got $1.8 million from friends and family. It’s now looking to get another $2 million – $1.2 million of which has already been secured — to “aggressively” scale its sales efforts and increase its implementation and product development teams to support new customers.
The funding is based on an approximate $9 million pre-money valuation.
Harney started working on Midas when she was a junior at Harvard University; she graduated in 2008 with a degree in English and computer science and then went on to Harvard’s Graduate School of Education, where she obtained a master’s degree in technology, innovation, and education in 2011.
She was inspired to start Midas because as she was teaching, she said she experienced difficulty in individualizing instruction for her students; she began by building tools for herself and soon saw a “huge” need for these tools in the market.
Midas uses a SaaS model, which specializes in education workflows, individualized instruction and big data. It makes money from subscriptions as well as in-platform revenue opportunities, like payment processing and the sales of classes and tutoring.
The company’s already in revenue and has seen its revenue double over the past 2.5 years. Its sales pipeline represents more than $14 million dollars in sales, based on a 75% probability of closing more clients in the next 12 to 18 months, Harney said.
Prominent customers include a five-year, $595,000, exclusive contract with the state of Utah to manage the professional development of every educators in the state.
Prominent advisors include Kathy Hurley, a 40-plus year veteran of the education industry, including executive positions with Pearson and IBM, and Jim Hager, who served as a teacher and principal and amassed twenty years as a superintendent of schools.