YeboLearn Investment & Fundraising Strategy ​
Executive Summary ​
YeboLearn is raising R8 million ($480K USD) seed round at a R50 million ($3M USD) pre-money valuation, offering 13.8% equity to accelerate market capture while maintaining our 18-24 month AI advantage.
Fundraising Strategy ​
Seed Round Structure ​
Target Raise: R8 million ($480K USD)
| Parameter | Amount | Notes |
|---|---|---|
| Pre-Money Valuation | R50M ($3M) | 10x projected Year 2 ARR |
| Investment Sought | R8M ($480K) | 18-month runway |
| Post-Money Valuation | R58M ($3.48M) | Seed stage benchmark |
| Equity Offered | 13.8% | Founder-friendly dilution |
| Minimum Ticket | R500K ($30K) | 5-8 investors max |
| Lead Investor | R3-4M ($180-240K) | Board seat included |
Alternative Structures ​
Conservative Option:
- Raise: R5M ($300K)
- Valuation: R35M ($2.1M)
- Equity: 12.5%
- Focus: 12-month proof points
Aggressive Option:
- Raise: R12M ($720K)
- Valuation: R60M ($3.6M)
- Equity: 16.7%
- Focus: Rapid 24-month expansion
Use of Funds Breakdown ​
Primary Allocation (R8 Million) ​
1. Sales & Marketing (45% - R3.6M)
| Initiative | Budget | Expected ROI |
|---|---|---|
| Sales Team (3 reps) | R1.8M | 150 schools Year 1 |
| Digital Marketing | R600K | 500 qualified leads |
| Conference Presence | R400K | 50 enterprise deals |
| Content Marketing | R300K | 2,000 inbound leads |
| Partner Channel | R500K | 30% of new sales |
2. Product & Engineering (30% - R2.4M)
| Initiative | Budget | Deliverable |
|---|---|---|
| Senior Engineers (2) | R1.4M | 30+ new AI features |
| AI Development | R400K | Advanced analytics |
| Mobile Apps | R300K | iOS/Android native |
| Infrastructure | R300K | 99.9% uptime SLA |
3. Operations & Support (15% - R1.2M)
| Function | Budget | Outcome |
|---|---|---|
| Customer Success | R500K | <5% churn rate |
| Implementation Team | R400K | 2-week onboarding |
| Training Materials | R200K | Self-service portal |
| Support Infrastructure | R100K | <2hr response time |
4. General & Admin (10% - R800K)
| Category | Budget | Purpose |
|---|---|---|
| Legal & Compliance | R300K | Data protection, contracts |
| Finance & Accounting | R200K | Audit-ready books |
| Office & Tools | R150K | Team productivity |
| Reserve Fund | R150K | Contingency buffer |
Monthly Burn Rate ​
Month 1-6: R350K/month
- 2 engineers, 1 sales
- Core product enhancement
- Market validation
Month 7-12: R450K/month
- 3 engineers, 3 sales
- Scaling operations
- Channel development
Month 13-18: R550K/month
- 4 engineers, 5 sales, 2 support
- Aggressive growth
- Series A preparation
Investor Target Profile ​
Ideal Investor Characteristics ​
Primary Targets:
EdTech Specialists
- Portfolio: 3+ EdTech investments
- Check size: R2-4M
- Value-add: Industry connections
- Examples: Reach Capital, Learn Capital, Owl Ventures
Africa-Focused VCs
- Geography: Pan-African presence
- Check size: R3-5M
- Value-add: Local market expertise
- Examples: Knife Capital, 4Di Capital, Savannah Fund
AI/Deep Tech Investors
- Thesis: AI transformation
- Check size: R2-3M
- Value-add: Technical guidance
- Examples: Founders Factory, Antler, Launch Africa
Strategic Angels
- Background: EdTech exits or African SaaS
- Check size: R500K-1M
- Value-add: Operational expertise
- Profiles: Former Andela, Zeraki, or Yoco executives
Investor Outreach Strategy ​
| Tier | Investors | Approach | Timeline |
|---|---|---|---|
| Tier 1 | 10 perfect-fit VCs | Warm intros only | Week 1-2 |
| Tier 2 | 20 strong-fit VCs | Direct + warm | Week 3-4 |
| Tier 3 | 30 good-fit angels | Broad outreach | Week 5-6 |
Pitch Deck Structure ​
Slide Flow (12 Slides) ​
Title Slide
- "YeboLearn: AI-Powered School Management"
- "The Only AI Platform for African Schools"
Problem
- 100,000+ schools using paper/Excel
- Zero AI adoption in education
- R50K+ wasted annually per school
Solution
- 15+ AI features in production
- 5 integrated dashboards
- 70% time savings for administrators
Market Opportunity
- R7.5B TAM ($450M)
- 15% CAGR
- Government digitization mandates
Product Demo
- Live AI grading in action
- Automated report generation
- Predictive analytics dashboard
Traction
- 100+ API endpoints live
- R4M technology built
- 18-month AI advantage
Business Model
- R2,000/month per school
- 70% gross margins
- R24K annual contract value
Go-to-Market
- Direct sales: 40%
- Channel partners: 30%
- Government contracts: 30%
Competition
- YeboLearn: 15 AI features
- Zeraki: 0 AI features
- PowerSchool: Not in Africa
Team
- Technical: AI/ML expertise
- Business: EdTech experience
- Advisory: Industry veterans
Financials
- Year 1: R1.2M ARR
- Year 2: R7.5M ARR
- Year 3: R36M ARR
The Ask
- Raising: R8M seed round
- Use: 45% sales, 30% product, 15% ops
- Milestone: 250 schools in 18 months
Valuation Justification ​
Why R50M Pre-Money is Conservative ​
Technology Asset Value
- R4.35M already invested
- R7.5M replacement cost
- 12x technology multiple = R52M
Market Opportunity Value
- R7.5B TAM
- 1% capture = R75M revenue
- 0.67% of TAM = R50M valuation
Comparable Benchmarks
- Zeraki: $20M with no AI
- African SaaS average: $2-5M seed
- AI premium: 2-3x traditional SaaS
Revenue Multiple
- Year 2 projection: R7.5M ARR
- Conservative 6-7x multiple
- Valuation: R45-52M
Equity & Dilution Structure ​
Cap Table Evolution ​
| Round | Investment | Post-Money | Founders | Investors | ESOP |
|---|---|---|---|---|---|
| Seed | R8M | R58M | 76.2% | 13.8% | 10% |
| Series A | R25M | R150M | 58.5% | 31.5% | 10% |
| Series B | R80M | R500M | 44.1% | 45.9% | 10% |
Investment Terms ​
Key Terms for Seed Round:
- No board control (observer rights only)
- 1x non-participating liquidation preference
- Pro-rata rights for follow-on rounds
- 4-year vesting for all equity
- No anti-dilution provisions
- Standard drag-along/tag-along
Success Metrics & Milestones ​
18-Month Targets ​
| Metric | Target | Current | Growth |
|---|---|---|---|
| Schools | 250 | 0 | New |
| ARR | R6M | R0 | New |
| MRR | R500K | R0 | New |
| NPS | >50 | N/A | Track |
| Churn | <5% | N/A | Track |
| CAC Payback | <12mo | N/A | Track |
Series A Readiness (Month 18) ​
✓ R7.5M+ ARR run rate ✓ 250+ paying schools ✓ <5% monthly churn ✓ 3 proven acquisition channels ✓ 70%+ gross margins ✓ Clear path to R50M ARR
Investment Highlights ​
Why Invest Now:
Perfect Timing
- AI revolution just beginning
- African EdTech at inflection point
- 18-month competitive moat
Proven Asset
- R4M+ already built
- Production-ready platform
- No technical risk
Massive Market
- 100,000+ target schools
- R7.5B addressable market
- 15% annual growth
Clear Exit Path
- Strategic buyers identified
- M&A activity increasing
- 10x return potential
Conservative Valuation
- Below comparable benchmarks
- Significant upside potential
- Founder-friendly terms
Next Steps ​
For Interested Investors:
- Review data room materials
- Schedule product demo
- Meet founding team
- Due diligence process (2-3 weeks)
Timeline:
- First close: 4 weeks
- Final close: 8 weeks
- Funds deployed: Immediately
Contact:
- Email: [email protected]
- Data room: Available on request
- References: 3 advisors available