Boston-based NeighborSchools that helps educators to open licensed family childcare programs has raised $3.5M in its new seed funding round. The financing will reflect on the expansion of the startup throughout Massachusetts. The round is led by early-stage capital venture Accomplice with the participation of AVG Basecamp Fund and Tuhaye Venture Partners. The founders are aiming at opening better daycare programs all over the US in the long run.
Challenges In the Child Care Industry
Definitely, there is no scarcity of preschool in the US, and those programs have incredible potential to mold children’s life. It helps parents save time and energy, and has the caliber to produce innumerable jobs for childcare professionals. In short, the system connects and supports three categories of people.
Despite the high potential and scope, many corporate preschools do not run productively. Parents are paying a fortune that would break the bank but, on the flip side, they cannot see the expected results in their children. According to NeighborSchools, preschool teachers are earning as little as $14/hour.
“In some corporate centers, less than 30% of the fees paid by parents end up in the pockets of the actual caregivers. The existing childcare system was clearly failing caregivers, parents, and, most importantly, children,” says Brian Swartz, CEO & Co-Founder of NeighborSchools.
How is NeighborSchools Elevating Preschool Industry?
The founders recognized the scope of licensed daycare schools. Even though they are not many more in Massachusetts, parents have to spend 40% less fee compared to corporate preschools. NeighborSchools founded in 2018 to bring more licensed preschools. It helps parents make affordable childcare and ensures better payment for the teachers.
Consequently, children get valuable care and develop a better life. Now, the startup is partnered with a multitude of childcare providers and offering productive programs through teachers who hold years of experience in the field.
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