Equity Why a16z-backed Wonderschool is acquiring EarlyDay
Mar 28, 2024
Chris Bennett, CEO and co-founder of Wonderschool, discusses the strategic acquisition of EarlyDay, which aims to tackle staffing shortages in childcare. Engaging with former EarlyDay CEOs Emma Harris and Melissa Tran, they explore challenges in the sector, including financial burdens and declining providers. The conversation emphasizes the importance of innovative solutions, like AI for recruitment, and the need for childcare investment post-COVID. They highlight how treating childcare as a business can elevate care quality and create a more sustainable environment.
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First Encounter
- Chris Bennett first encountered Early Day in a news article 18 months prior to their acquisition discussions.
- An investor alerted Bennett to Early Day again six months ago, leading to talks and the eventual acquisition.
Synergy, Not Rivalry
- Wonderschool helps individuals create and manage childcare businesses, while Early Day focuses on staffing for these businesses.
- This overlap led to their collaboration instead of competition.
Teacher Shortage
- Chris Bennett's experience starting childcare programs highlighted the difficulty of recruiting teachers.
- Governments and employers also emphasized teacher shortages, making Early Day's acquisition a strategic move.