South Jersey startup EdLight raises $4M to fuel continued expansion, hiring
The startup has been using machine learning 'since before it was cool.' Now, its founder hopes the fresh funding will help it stay ahead of the curve. South Jersey education technology startup EdLight has raised $4 million in seed funding for its expansion and hiring. The funding was secured with Backstage Capital, which invests in companies led by underrepresented founders such as women and people of color. The company, which uses machine learning to digitize handwritten schoolwork, has grown its operations to 20 schools in New England. Thomas, the CEO of EdLight, credits his network of advisors for securing the funding. The fresh funding will be used to continue investing in EdLight's technology and to increase its reach in the Mid-Atlantic.
Published : 4 weeks ago by Ryan Mulligan in Business
In a difficult fundraising environment, a South Jersey entrepreneur leveraged her network of trusted advisors to make an "avalanche" of new connections and raise $4 million in fresh funding for her company.
Based in Moorestown, Teryn Thomas' education technology startup EdLight closed the seed round this week with Backstage Capital as the lead investor. California-based Backstage Capital invests in companies led by underrepresented founders such as women and people of color.
The funding comes on the heels of a robust year of growth for EdLight, which saw its revenue triple in 2023 to $655,000.
Founded in 2019, EdLight uses machine learning to digitize handwritten schoolwork. Its technology allows teachers to quickly offer personalized feedback on handwritten work, and the machine learning component creates student-specific profiles that can track student progress or trends in their development over time.
EdLight, which has an underlying goal of improving equity in education, has grown its operations to 20 schools, many of them in New England.
Thomas, the CEO of EdLight, sees the startup as being ahead of the curve on machine learning and artificial intelligence, noting that it has used the technology "since before it was cool, and finally the space is catching up to us."
Thomas has caught the attention of some big names since launching the company with co-founder Ryan Knight. EdLight previously received a $3 million grant from the Bill and Melinda Gates Foundation, and it was selected for the Google for Startups Black Founders Accelerator in 2022, where it received a $150,000 grant.
"Having those big names take bets on EdLight helps establish credibility in the space," said Thomas, who earned a bachelor's degree from Drexel University and a master's from the University of Pennsylvania.
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That and EdLight's tenure in the machine learning space were important factors as Thomas sought to raise the $4 million seed round. Rather than the traditional funding approach, which often includes a litany of pitches to potential investors, Thomas said that "targeted and thoughtful introductions" where she could point to investors already on board — or the Google and Gates Foundation backing — were instrumental.
"The regular rulebook is not working right now for a lot of founders," she said. "Having that shiny, pretty deck, honestly for us, just wasn't cutting it because I think you really need some deeper connections."
The fresh funding will be used across a few key areas. One is continuing to invest in EdLight's technology. The core EdLight team of five are all former teachers, so Thomas isn't worried about educational experience but wants to ensure the company stays on the cutting edge of technology, particularly with the space being a "congested environment right now," she said.
"It is absolutely essential for us to continue to lead the pack in terms of the technology that we're bringing," Thomas added.
EdLight also wants to expand its reach. Thomas feels it has a strong foothold in the Boston area and New England as a whole, but she wants to see more traction in the Mid-Atlantic. She said Philadelphia, Washington, D.C., and Baltimore are her team's three cities of focus to increase its presence in 2024.
Thomas said that EdLight has seen success in ramping up its presence in clusters. When one school district adopts its technology, others nearby tend to take an interest as well.
With the seed funding secured, Thomas is focused on increasing headcount as well. EdLight recently hired a full-stack engineer and is looking to hire two more engineers focused on machine learning.
"It's really that technology side and making sure that we are not just moving at a really quick pace, but kind of being the trailblazers in lot of ways," Thomas said.
Topics: Startups