Because Learning

Because Learning

Learning platform focused on teaching STEM skills

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Security Type
Crowd Note
Categories
Education
Min Investment
$100
Location
Draper, UT
Offering Date
August 15, 2018
Expected Close Date
September 28, 2018
Target Raise
$25.00K
Deal Notes
  • Security Type: Crowd Note
  • Round Size: Min: $25,000 Max: $107,000
  • Valuation Cap: $2,000,000
  • Conversion Provisions: In connection with an equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into shares of a series of non-voting preferred stock, at the price per share of the new preferred stock sold in the equity financing, or a valuation cap of $2,000,000, whichever results in a lower conversion price. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Company Description

Founded in August 2014, Because Learning’s mission is to inspire students in the science, technology, engineering, and math (STEM) fields. Since then, Because Learning—formerly known as Ardusat—aims to excite kids about science through hands-on labs, experiments, and activities based on Next Generation Science Standards (NGSS) and other STEM skills. The Because Learning platform is designed to provide students and teachers online lessons and labs that pair with its high-end Arduino sensor kit to conduct experiments, analyze real-time data, and visualize real-life concepts in coding, engineering, science, technology, and math. Used in over 30 countries, Because Learning is on a mission to bring better STEM learning to students across the world. Because Learning is now seeking additional capital to fund its expansion into the fast-growing Chinese education market.

Key Deal Facts

Lessons and sensor kits are used in 30 countries and 400 schools around the world
Students can conduct experiments in space through Because Learning’s exclusive partnership with satellite company Spire
Two distributors signed for 2018 expansion in China
Partners include the University of California Berkeley, the Association of Space Explorers, and satellite-powered data company Spire

Use of Proceeds

Because Learning has several opportunities with partners to expand its product line in China. Because Learning has an opportunity to enter as a U.S.-based EdTech company that offers a program for both the after school programs and traditional school models. The company has signed agreements with providers that sell into both markets.

The funds from this raise will be used to support the company’s expansion into China, helping set up a China-based subsidiary and hiring an in-country manager. Because Learning also plans to use the funds to grow its domestic business by investing in marketing to help generate more leads and by hiring sales people to close deals.

If the minimum $25,000 is raised, Because Learning will spend the majority of funds to hire an in-country manager for China and manufacturing of additional inventory. If the maximum $107,000 is raised, Because Learning will also spend the majority of proceeds to hire an in-country manager for China and manufacturing of additional inventory.

Management Team / Advisory Board Bios

Sunny Washington
Co-Founder and CEO
Sunny has spent more than 15 years working in the EdTech industry, most recently coming from Instructure—which went public in 2015—where she was one of its early employees. During her time at Instructure, she assisted in building the sales, business development, account management, and marketing teams. Prior to Instructure, Sunny worked as a program manager for Certiport, a company that builds certification products for Microsoft, Adobe, and other software providers. During her time at Certiport, she launched a digital literacy certification program that was used in over 80 countries. Certiport was later acquired by Pearson.

Kevin Cocco
Co-Founder and CIO
Prior to Because Learning, Kevin was the founder of SproutLoop, a development and consulting company based in Salt Lake City, Utah. He formerly was the VP of IT at the Professional Education Institute (PEI) where he led development of the Interactive training platform, marketing, and analytics technologies. Prior to PEI, he worked at Discover Card for 12 years where he held several positions and helped lead the infrastructure and development teams that provided analytics and business automation solutions across the company’s national operations centers. Kevin holds a BS Degree in Computer Science from Western Illinois University.

Deal Notes

  • Security Type: Crowd Note
  • Round Size: Min: $25,000 Max: $107,000
  • Valuation Cap: $2,000,000
  • Conversion Provisions: In connection with an equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into shares of a series of non-voting preferred stock, at the price per share of the new preferred stock sold in the equity financing, or a valuation cap of $2,000,000, whichever results in a lower conversion price. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.
Amount Raised : $117,868
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Security Description

A Crowd Note modifies the typical convertible note so that the crowd does not automatically convert to equity shareholders on the next financing and remain off the issuer’s capitalization table, but the crowd will still participate in any exit as if they had converted to equity. If there is no future financing, the holders of the Crowd Note still have upside, but could miss out significantly.

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