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Why a16z-backed Wonderschool is acquiring EarlyDay

Wonderschool, a startup that provides software and support to help individuals and local governments launch childcare businesses, has acquired EarlyDay, which operates the early childhood education market.

TechCrunch has covered Wonderschool from its inception, including its seed and Series A rounds (led by Andreessen Horowitz).

Terms of the deal were not disclosed, but in an interview with the TechCrunch Equity Podcast, EarlyDay co-CEOs Emma Harris and Melissa Tan described the deal as “opportunistic,” It said it was not driven by financing needs. Wonderschool CEO Chris Bennett declined to disclose details of the deal’s structure, but hinted that the deal was executed for a substantial sum.

We invited Harris, Tan, and Bennett on the show to discuss the deal, the future of their industry, America’s child care woes, and more. Tune in!

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

Edtech and other startup categories have been overshadowed by artificial intelligence technology over the past year or so, but there’s still a huge market and need for better childcare and other early childhood services. Parents have been concerned about the availability of child care as certain federal programs come to an end. In fact, a quick search for “child care crisis” will tell you how worried parents of young children are and how strapped they are for affordable options.

If the Wonderschool-EarlyDay deal goes through, we could see an increase in the supply of child care. This is good for Wonderschool’s business and for parents who need help.

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For the full interview transcript, for those who prefer reading to listening, read on or check out our full episode archive on Simplecast.

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