Apparently worried that it might have been missing out on the big opportunity a Nigerian-based education technology startup uLesson is bringing to the table, US-based Venture Capital firm Founder Collective has joined uLesson’s seed round closed in 2019.
“The entire team is excited and humbled by this investment by Founder Collective and the strategic guidance and support they bring to our journey. Building a learning platform like uLesson with a library that is rich in content and scope portends huge benefits for the education system in terms of quality and relevance of content, cost-efficiency, and ease of learning,” Sim Shagaya, Founder and CEO of uLesson, said in a statement.
Here Is All You Need To Know
- Although, the amount of investment remains undisclosed, VC Founder Collective is usually known for participating in investments seven-figure and above.
- uLesson said the investment would allow it to expand its online learning platform to reach more learners, academic tutors, media and technology to maximize its potential as an edtech player.
- In 2019, uLesson raised $3.1mn Seed Round led by TLcom Capital with participation by Sim Shagaya ahead of its market launch in Nigeria in February 2020.
- uLesson could count having Shagaya as CEO as one of its advantages in the edtech space. His best known venture, Konga, went head to head with online retailer Jumia in pioneering e-commerce for Nigeria and Africa. Konga was sold in a distressed acquisition in 2018.
- In both Nigeria and Kenya uLesson will face competition from existing ventures. Edtech in Africa doesn’t have as many companies (or as much VC funding) as leading startup sectors fintech and e-commerce, but there are a number of players.
Why The Investor Invested
Founded in 2009, Founder Collective is a Massachusetts-based seed-stage venture capital fund that helps entrepreneurs build their businesses.
“We only invest at the seed stage and don’t (do) follow-on which means when it comes time to raise the next round we are fully-aligned with the founding team. We provided the initial capital that enabled Dia&Co to expand beyond their first Bushwick warehouse — then sales exploded.
When it came time to raise more money, We could provide Nadia and Lydia with objective advice and act as a sounding board,” the VC noted on its website.
In 2014, the VC participated in Andela’s seed funding round of undisclosed amount, alongside other investors such as Steve Case, Omidyar Network, Founder Collective, Rothenberg Ventures, Learn Capital, Melo7 Tech Partners, and Chris Hughes.
Read Also: Three Reasons Why TLcom Capital Invested In Nigerian Startup uLesson
A Look At What Startup uLesson Does
- Founded in 2019 by Shagaya — who also founded Nigerian e-commerce startup Konga and ad venture E-Motion — uLesson is headquartered in Lagos with a production studio in Jos.
- uLesson attempts to place priority on education across West African households vs. structural deficiencies — such as student teacher ratios as high as 1:70 in countries such as Nigeria.
- uLesson offers an app-based home education kit for students with an up-front yearly subscription price of around $70 and the option to pay as you go. The startup’s product pack will contain a dongle, SD card, and a set of headphones to connect to Android devices.
- Curriculum on the uLesson program will include practice tests and tailored content around math, physics, chemistry, and biology. The venture has already created 3000 animated videos for core subjects, according to Shagaya.
- To leverage high android mobile penetration in Africa — and minimize data-streaming costs — uLesson content and performance assessment will come via a combination of streaming and SD cards.
- Parents and students can connect online temporarily to update the app and sync curriculum and results, while operating off-line for the bulk of lessons.
- Shagaya likened the use of SD cards to the old Netflix model of sending and returning DVD’s by mail, prior to faster and more affordable internet service in the U.S.
- The uLesson program will also package a human component. The startup plans to deploy a network of counselors in major distribution areas to instruct on how to use app and follow lesson plans.
- uLesson is to be a supplement to secondary school education and a more affordable and effective alternative to private tutors, explained Shagaya.
- After taking uLesson to market in Africa’s most populous nation — Nigeria — and other countries in the region, Shagaya and team plan to adapt the product for a future East Africa launch.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer