Why a16z-backed Wonderschool is acquiring Earlyday

Wonderschool, a startup that provides software and support to individuals and local governments to help scale up childcare businesses, has acquired Earlyday, which operates an early childhood teacher marketplace.

TechCrunch has covered Wonderschool since its infancy, including both its seed round and its Series A (led by Andreessen Horowitz).

Terms of the deal were not disclosed, but in an interview with TechCrunch’s Equity podcast, Earlyday co-CEOs Emma Harris and Melissa Tan described the transaction as “opportunistic”, adding that it was not driven by fundraising needs. Was. Wonderschool CEO, Chris Bennett, declined to share details of the deal’s structure, but did reveal that it was executed for a non-trivial sum.

We brought Harris, Tan as well as Bennett onto the show to talk about the deal, what’s next for their sector, America’s childcare problem and more. tune in!

In early 2022, Wonderschool raised a $25 million Series B at a $165 million post-money valuation, according to Crunchbase data. Earlyday later raised a seed round of $3.3 million in 2022.

AI technology has had an impact on edtech and other startup categories over the past year or so, but there’s still a huge market and a need for better childcare and other early-childhood services. Parents are concerned about access to child care as some federal programs are ending. In fact, a quick search of “child care crisis” will show you just how worried parents of young children are and how strapped for affordable options they are.

If the Wonderschool-Earlyday deal is successful, we could see an increase in the supply of childcare services. This will be good for both Wonderschool’s business and the parents who need help.