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Preston Silverman on Building out a Marketplace in Education - at YC Edtech Night
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At YC Edtech Night, early-stage edtech founders from around the world gathered to meet and learn from each other. The sessions included fireside chats with edtech alums from YC and Imagine K12. Preston Silverman is the founder of RaiseMe - https://www.raise.me/ - (Imagine K12, S12), a platform that allows colleges to award micro-scholarships to students throughout high school for doing the things that prepare them for college success. Last year, RaiseMe awarded over $1B in scholarships to students. At Edtech Night, Preston talked with Tim Brady about building a two-sided marketplace and shared his experiences fundraising as an edtech founder.
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Rethinking College Funding
Preston Silverman introduces RaiseMe, a platform designed to transform how students access scholarships and grants for college. He highlights the importance of early financial support, noting that over 80% of jobs require a college degree, yet many students are deterred by rising education costs. Silverman emphasizes the need for a transparent system that allows students to accrue aid throughout high school, empowering them to pursue their college ambitions with confidence.
"hello everyone good evening thanks for having me really excited to be here so I'm founder and CEO of raise me we're focused on expanding access to higher education by rethinking the way that students ..."
From Consulting to Education
Silverman shares his journey from working in strategy consulting to founding RaiseMe. He reflects on his desire for a more direct impact in education, which led him to teach high school in India. This experience inspired him to develop RaiseMe, as he recognized the challenges students face in navigating college funding and the application process.
"finished our third school year we're going into our fourth school year last year we awarded over a billion dollars nearly a billion and a half dollars and scholarships and grants through the platform ..."
Navigating the Marketplace Dilemma
Discussing the challenges of building a two-sided marketplace, Silverman explains the initial uncertainty about sourcing funds versus attracting students. He highlights the importance of establishing a network density in specific regions to balance the needs of students and funding sources effectively.
"you were then calling it a 12 and and moved to California for that so he moved it to India I'm sorry from India dad to California for this ya didn't I didn't realize that and so getting into the progr..."
Finding Product-Market Fit
Silverman describes his gradual realization of product-market fit for RaiseMe. He emphasizes the importance of continuous iteration and validation, noting that confidence grew as more students began signing up for the platform. He stresses that achieving product-market fit is an ongoing process rather than a binary outcome.
"should start with the higher ed institutions themselves got it sue you have a bit of a because it's a marketplace of sorts there's a bit of a chicken and the egg problem with getting these funds and t..."
The Fundraising Journey
Reflecting on his fundraising experience, Silverman recounts the challenges of securing initial funding for RaiseMe. He discusses the importance of traction and proof points in attracting investors, as well as the role of grant funding in supporting early operations. His story illustrates the persistence required in the fundraising process.
"take me through your fundraising story how did that go how long did it take what are your thoughts reflecting back on it it took a very long time I would say our first round took like well over a year..."
Evolving as a CEO
Silverman contrasts the tactical nature of his early days as a founder with his current role as CEO. He explains how his focus has shifted from hands-on tasks to setting the vision and strategy for RaiseMe, emphasizing the importance of building a strong team and ensuring financial stability.
"is it to raise money as an ed tech company in Silicon Valley was it did did I've only raised money as a attacker but did you get out did you feel labeled if you will like or did you not notice it oh I..."
Lessons Learned on the Journey
Silverman shares key lessons from his entrepreneurial journey, emphasizing the need for patience and resilience. He advises aspiring founders to focus on survival and iteration rather than expecting immediate success. His insights highlight the importance of adaptability in the face of challenges.
"hands-on selling as well going out and pitching colleges and universities pitching teachers as well that accounted for probably 80% of my time when I wasn't fund raising and how that's evolved I would..."
Future Aspirations for RaiseMe
Looking ahead, Silverman envisions RaiseMe as a platform that supports every student in the U.S. and beyond in their college and career journeys. He aims to expand the platform's offerings beyond financial aid, providing comprehensive guidance for students navigating critical life decisions.
"company yeah great maybe change tactics and get out of the other company for a second what do you think other than maybe financial aid what's the biggest barrier facing students today oh I think that'..."