Portfolio EdTech company Acadeum closes $12M Series B

College students can’t always get into the courses they want, even online ones. That’s why many schools share online courses across institutions to give students more flexibility in scheduling the classes they want and help them graduate.

Austin-based edtech startup College Consortium Inc., which does business as Acadeum, is one of the biggest players in this ecosystem, working with big schools like Texas A&M and smaller systems. Today, Acadeum announced it has closed an $11.9M series B funding round led by Austin-based Green Street Impact Partners. It is the fund’s first investment. Other investors included ECMC Group’s Education Impact Fund and Pearson Ventures.

Acadeum’s platform provides course sharing across national and regional schools, and the company has partnered with Coursera to expand offerings of professional certificates. Through course-sharing, schools can offer courses that they might not otherwise be able to.

For example, last year Complete College America launched a course-sharing initiative in partnership with Acadeum to help two-year schools aiming to start or expand technical programs.

“Today’s learners are older, and more likely to be parents or working, than at any point in our nation’s history. That new majority of learners are putting pressure on institutions to align course offerings with the realities of their schedules and responsibilities beyond the classroom,” David Daniels, CEO of Acadeum, stated. “At a moment when some are questioning the role and relevance of American colleges, we’re building tools to leverage the collective strength of our nation’s higher education system to unlock new opportunities for both institutions—and students.”

Acadeum was co-founded in 2016 by Joshua Pierce, Luis Felipe Rincon, Nathan Green, Osei Bonsu and Robert Manzer. It has now raised a total of $23.9M, according to Crunchbase.

Questions to ask before making an Impact Investment

The questions vary depending on the specific interests and priorities of each impact investor, but they generally revolve around understanding the startup’s mission, impact measurement, scalability, financial viability, risks, partnerships, and accountability.

Here are some questions you may ask:

1. What is the mission and purpose of the startup? Investors need to understand the company’s core values and the specific social or environmental issue it aims to address.

2. What is the potential impact of the startup’s product or service? Investors need to know how the company’s offerings can contribute to positive change and create meaningful social or environmental benefits.

3. How does the startup measure and track its impact? Investors are interested in understanding the metrics and methodologies used by the company to assess and report its impact. They want to ensure the startup has a rigorous and transparent impact measurement framework in place.

4. What is the size of the target market and the growth potential? Investors need to evaluate the market opportunity and scalability of the startup’s impact. They want to understand if the company has the potential to reach a large number of people or create significant environmental improvements.

5. What is the business model and revenue generation strategy? Impact investors need to know how the startup plans to generate sustainable financial returns while delivering positive social or environmental outcomes. They want to assess the viability and long-term sustainability of the business.

6. Who are the key stakeholders and partners involved? Investors are interested in understanding the startup’s network of stakeholders, including customers, beneficiaries, suppliers, and strategic partners. They want to evaluate the company’s ability to collaborate and create synergies with relevant organizations.

7. What are the potential risks and challenges in achieving impact? Investors need to identify potential obstacles that may hinder the startup’s ability to achieve its intended impact. They seek to understand the company’s risk mitigation strategies and the management team’s ability to navigate these challenges.

8. What is the exit strategy for the investor? Impact investors often seek to understand the startup’s plans for future liquidity events, such as an IPO or acquisition, to ensure they can eventually realize financial returns on their investment.

9. How does the startup ensure accountability and transparency? Investors need to know how the company ensures accountability to its impact goals, stakeholders, and investors. They may inquire about governance structures, board of directors structure, impact reporting, and the company’s commitment to ethical practices.

10. Has the startup received any third-party certifications or recognition for its impact? Investors may be interested in knowing if the startup has obtained certifications or awards from reputable organizations that validate its impact claims. This can provide additional assurance and credibility.

These are the questions that SWAN digs into before investing. SWAN makes a first investment in 6 to 8 companies per year. A team of 10 volunteers publishes a twenty -page deal memo for each investment opportunity. Joining SWAN as an Angel or Associate member and helping with a deal memo is a great way to learn how to assess an impact-startup investment opportunity.

Making an Impact in 2022: SWAN’s Year End Review

Despite the economic uncertainties experienced by our angel investors in 2022, they
stepped up and invested in eleven social or environmental impact companies. SWAN angels are committed to making the world a better place.

SWAN’s investments enable creative entrepreneurs to
address important United Nations Sustainable Development Goals.

The SWAN Impact Network’s portfolio significantly increased in value in 2022.
And SWAN established a Philanthropic Fund that allows charitable
donations to be invested in companies that have been funded by SWAN angels.

In 2022, SWAN  added to its broad alliance of impact and syndication partners.

 

Portfolio company Yotta in the News

Yotta Energy has been selected by the New York State Energy Research and Development Authority and the U.S. Department of Energy as one of ten climate tech companies, hailing from Europe, Australia, North America and across the U.S, that are dedicated to significantly accelerating the move to a resilient, electrified, and clean economy, in New York and beyond.

Working across the value chain, these transformative companies are positioned for scale and ready to make an impact, with solutions ranging from cells and packs; thermal, long-duration, stationary and portable storage; mobility solutions; and distributed energy resources.

Austin, Texas-based Yotta Energy produces distributed energy products, including EV chargers and the first solar battery that integrates behind rooftop solar panels. The integrated battery significantly reduces installation costs, along with its plug-and-play design that means if you can install a solar module, you can install their battery.

 

Impact Assessment, YES! ESG Assessment, not yet!

The SWAN Impact Network now has a Director of Impact reporting, Meagan Packard. Meagan is doing a wonderful job of advancing our Network’s understanding of how to assess and document the impact potential of a company before our angels invest. She is also coaching companies on how to measure impact in ways that creates actionable information that helps the CEOs to maximize the impact delivered.

Meagan pointed me to a well-written article that supports what I have been saying for years. SWAN  focuses on impact investing, and not on ESG (Environmental, Social, and Governance). Impact investing comsiders a company’s business primary product or service offering. ESG considers how the company’s operations interact with society and the environment.

You can read more in the Stanford Social Innovation Review at ESG is Not Impact Investing and Impact Investing Is Not ESG.

SWAN Director Juan Thurman in the News

The investment tracking platform SERAF featured Juan Thurman in the seventh in a series of interviews highlighting the work of interesting impact investors. Juan Thurman is a Director of the SWAN Impact Angel Network.

SERAF asked, “Looking ahead in early stage impact investing, what are you most excited about? What keeps you up at night?”

Juan replied, “When we started engaging with investors in 2016 they assumed impact investing was concessionary. Fortunately, investors have become more educated and now know you can make market or better returns investing in impact startups. The thing I am most excited about is working with early stage founders, helping them get traction and seeing them deliver impact in their chosen markets. Missing out on good deals is what keeps me up at night.”

Portfolio company ClearFlame named as one the Next Big Things in Tech

Thanks to its enormous installed base and prolonged driving distances, heavy trucking lags passenger cars in moving to zero-emissions operations. Geneva, Ill.-based ClearFlame Engine Technologies, however, is readying an alternative off-ramp from diesel fuel: a series of engine modifications that allow current-model trucks to run on ethanol sourced from corn at no loss in performance. Based upon that, ClearFlame has been named to Fast Company’s annual list of the Next Big Things in Tech.

Fast Company describes the chosen members of this list as “tech breakthroughs across industries that promise to transform the future.”  These technology breakthroughs were highlighted by Fast Company for their cutting-edge advancements and potential to impact consumers, businesses, and society overall. Clear Flame is recognized in the transportation category by this leading publication dedicated to the intersection of business, innovation, and design.

Portfolio company Harmonic Bionics has closed additional funding

Harmonic Bionics aims to empower patients and their care providers by designing intelligent technology that facilitates data-driven treatment for neurological and musculoskeletal movement impairments. Their flagship product, Harmony SHR™, is a bilateral upper extremity exoskeleton dynamically designed to provide unique value in three areas of practice: neuroscience and movement science research, movement disorder assessment, and rehabilitation.

Harmonic Bionics has announced that they have raised $3 million of venture funding from South Korea-based medical robot manufacturer Curexo, Inc.   Harmonic Bionics will now assist with US promotion and business development for Curexo’s Morning Walk S200, a robotic gait rehabilitation system, and CUVIS-spine, a surgical spine robot.

Last year, the company raised a $7.42 million Series A from H Robotics, Bass Investment, and DSC Investment.

Weathering the Uncertain Investment Environment

A Perspective from Bob’s Desk.
Executive Director, SWAN Impact Network

Likely you have seen headlines, such as the Wired article, “The Bad Times are coming for Startups”. The article starts with these words, “Last week, the employees of Cameo, a startup that sells personalized videos from celebrities, gathered for an all-hands meeting. The news was not good: Nearly a quarter of the staff was being laid off.” And the article goes on to say, “Soaring valuations and booming IPOs made startups seem like a safe bet, inspiring hundreds of new venture funds. Now, the party seems to be over.”

Concerns about the economy (inflation, possible recession, delayed IPOs) are causing VC to give their portfolio companies tough-love advice. “Cut spending. Conserve cash.” These words are a complete turn-around from the Silicon Valley message to companies: “Grow as quickly as possible to create or disrupt a market. Gain market share by raising and spending as much as possible and don’t worry about getting profitable.”

This shift in mindset influences how we, who are most often the first investors in pre-seed companies, should think about investing.

How should early-stage startups think about all of this?
Starting a company during a time of economic uncertainty has a number of advantages. Fewer startups are created, so competition in your niche market may lesson. Hiring becomes less difficult when other companies have layoffs or hiring freezes. Service providers need to shore up revenue, and may be more accessible. And most importantly, when the economic outlook improves, which it always does, the VCs will have fewer companies at your stage of development to invest in, since your class of startups will be smaller.

How should early-stage angel investors think about all of this?
Since we think of a five-to-seven year window for return, companies starting today should exit in a much stronger economic environment. We should continue our search for promising companies. And we should place a greater emphasis on cash-efficient companies. And, we should require first closing investment amounts to be sufficient to carry the company for two years. Can the company make solid business progress in two years with limited funds? And we will need to work diligently at syndication to help the companies to get to the first close amount.

Announcing Changes in SWAN’s Leadership

After three years of dedicated service on the SWAN Board of Directors, Laura Hill is rotating off the board. She has brought to the board keen insights about angel investing, was instrumental in improving our deal flow process, has been the lead on planning and organizing SWAN social events, and most recently ably led the working group that nominated her replacement on the board.

Thank you, Laura!

 

 

 

 

SWAN is pleased to have Gwen Echols join our Board of Directors. Gwen brings a wealth of experience to the board and strengthens the Dallas representation on the board. Gwen is an experienced professional with a record of driving progress in the business and nonprofit community. Presently a nonprofit advisor and board member, she has supported Dallas agencies in leadership roles for over 20 years. Concurrently Gwen has provided mentorship and coaching to social impact leaders and entrepreneurs since 2018. Gwen is a frequent investor at SWAN, and has been active at  the Rockies Venture Club, one of the country’s oldest angel groups. Gwen was formerly a Senior Vice President with Bank of America, including career roles on the Bank’s merger team, in technology development, and through 2003, as Senior Vice President and relationship team leader in corporate treasury services.

 

 

SWAN is delighted to have Meagan Packard join our leadership as Director of Impact Reporting. She is tackling one of the most-challenging aspects of being an effective impact investing network, namely .quantifying the actual impact resulting from our investment dollars. We expect her efforts will make SWAN a recognized leader in reporting on the impact, and will position SWAN as a role model for other impact angel networks.

Quoting Meagan, “Our world needs novel solutions to critical conservation & sustainability issues now. My aim is to get cutting edge research into the marketplace quickly to start solving our global climate and biodiversity problems today”.

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