NAB Ventures and Larsen Ventures have invested in Edstart’s Series A funding round.
Founded in 2016, Edstart offers funding packages for school fees through a platform that provides parents with the option to spread their payments over a plan through two core products, Edstart Pay and Edstart Extend.
Edstart Pay allows parents to spread the fees in smaller payments throughout the year easing the challenge of cash flow timing. The payment plan enables parents to pay in weekly, fortnightly or monthly instalments over a 12-month period covering the school year.
Edstart Extend is a funding package designed to extend the education fees for up to five years post-graduation, reducing the individual yearly payments.
As part of the investment, Todd Forest, managing director at NAB Ventures will be appointed as a director of the board. Commenting on the investment, Forest said the education financing space was an untapped market in Australia.
“We know more than one in three Australian families currently send their children to a non-government school, with school fees only increasing year on year.
“We’ve banked the education sector for over 150 years and currently bank more than 30 per cent of independent schools across Australia. We’re excited to see how Edstart can further develop its offering to alleviate the cash flow burden on families and help children maximise their potential.”
According to NAB, school fees are one of the largest household expenses presenting a cash flow problem, given parents are invoiced with a significant lump sum payment every school term, particularly in multi-child households.
Jack Stevens, CEO at Edstart said the platform would enable a smarter approach to school fees, with the primary focus easing the burden of cashflow issues for parents.
“We believe education is the world’s most powerful investment and we’re on a mission to help people pay for that in a smarter way.
“Schooling costs vary greatly and while school fees are known from the outset, it’s often the timing of when payments are due or how much is due at once, that causes cash flow issues for parents and schools.”