Pearl, a Richmond-based company that develops software for academic tutors, has secured $4.8 million in a recent capital raise, according to an SEC filing. Pearl Raises $4.8M to bolster its team as it expands its client base to include larger tutoring companies and state college systems. Pearl’s license-based software provides scheduling and reporting tools and supports both online and in-person tutoring programs. The newly raised funds will be used to hire more employees, further develop the software, and fuel the company’s growth. The lead investor in the capital raise was Blu Venture Investors, along with participation from Fidi Ventures, CAV Angels, and 757 Angels.
Introduction
From Richmond BizSense By Jack Jacobs
Company Overview
A local company that builds software for academic tutors has scored a sizable new batch of cash to help fill out its roster as it takes on new and larger clients.
Capital Raise
Shockoe Bottom-based tech company Pearl, formerly known as Trilogy Mentors, recently wrapped up a $4.8 million capital raise, according to a recent SEC filing.
Software Features
Pearl’s license-based software is used by tutoring companies, school districts and state college systems to run their own tutoring programs, whether online or virtual. The software features scheduling and reporting tools as well as virtual one-on-one and small-group classrooms.
Company Growth
CEO and founder John Failla said the company recently secured the second, $2 million half of the overall $4.8 million round and that newly acquired capital will be used to grow the company as it establishes itself as a software provider to large tutoring companies and state college systems.
Future Plans
Pearl plans to use the funding to hire more employees such as designers and developers to further improve the software. The company currently has 14 full-time employees, two of whom were recently hired, and plans to add up to four more full-time by the end of the year, Failla said.
Client Expansion
Pearl recently started to target large tutoring companies and government entities during a boom time for tutoring. The 2021 American Rescue Plan earmarked funds for tutoring to help address learning loss among students due to the pandemic.
Investors
Blu Venture Investors in Vienna was the lead investor in the capital raise. New York-based Fidi Ventures also participated in the raise, as did CAV Angels, a group of UVA-affiliated angel investors, and 757 Angels in Hampton Roads, Failla said.
Company History
Pearl launched as Trilogy Mentors in 2015 and changed its name in 2021. The company originally would connect local tutors with local students but shifted to focus on licensed software development in 2019.
Financials
A company with up to 49 tutors pays a license fee of $40 a month plus $10 per additional tutor, according to Pearl’s website. Failla said Pearl hasn’t achieved profitability yet.
Location
The company is headquartered in the 1717 Innovation Center.
Question & Answer
What is the recent capital raise amount secured by Pearl?
Pearl has secured $4.8 million in a recent capital raise, according to an SEC filing.
How does Pearl’s software support tutoring programs?
Pearl’s license-based software provides scheduling and reporting tools and supports both online and in-person tutoring programs.
Which investors participated in Pearl’s capital raise?
The lead investor in the capital raise was Blu Venture Investors, along with participation from Fidi Ventures, CAV Angels, and 757 Angels.
What are Pearl’s plans for the newly raised funds?
Pearl plans to use the funding to hire more employees, further develop the software, and fuel the company’s growth.
