We Raised $4M to Put Education Back into the Hands of Parents

American educational success was once singular. It helped define the modern approach to public education, expanding access and becoming a hotbed for pedagogical innovation. By 1940, the majority of American students were educated at a high school level. The closest behind it, Britain, only ~20%. How did the US achieve this? Thousands of towns across the country chose to form their own high schools, funded open-access schools in pursuit of their own self-interest, and their own values. The results were practical and powerful. Local children became skilled workers, and young families voted with their feet, bringing dynamism and growth with them.

But today, the United States no longer leads the world. It's having the steepest drop in math scores and reading scores in more than 20 years. COVID opened parents' eyes to the cracks. 25% of families today educate their children outside of public schools. Somewhere along the journey, we lost what made American educational success so great.

This truth has become consensus. Now with how AI is completely changing the way we live and work, the way we approach education globally must change. And America once again has all the right cultural ingredients to lead the charge.

We believe communities serve themselves better than any top-down bureaucracy ever could. Parents should be able to choose between these different options. This is what "School Choice" is and this is the answer. Parents want choice and it's gaining bipartisan momentum: with 74% of Republicans and 75% of Democrats voting for it. States are acting: there are now 75 choice programs across 34 states, making $211B available to them.

Pathfinder has raised $4M to put education back into the hands of parents. This round was led by Gradient and Reach Capital, alongside Hummingbird, Social Impact Capital, and Families Fund, and angels like Charlie Songhurst, Eric Ries, Amir Nathoo, and Russ Fradin. We will achieve this in 3 steps:

1. [We're here] Open up choice funding for parents (ESAs, ECCA, 529s etc.). Build out the easiest way for parents to be able to access their education funds through: an app and an associated card to track and streamline purchases. This also includes working with the state and federal government to remove blockers/caps/constraints on programs like ESAs.
2. Help families navigate the options available. Become the go-to place to help families decide what to use their education funds for. Help them discover what's out there, see reviews on vendors, schedule and ultimately piece together their dream education for their kids.
3. Create more supply of options. School Choice is inevitably becoming supply constrained. Private schools, microschools, clubs, transport, co-ops, pods etc are still popping up all over the country. It isn't and won't be fast enough to keep up with the growing demand. The educational entrepreneurs setting these up don't have the tools to simplify the process. By helping families navigate the options available, we will know where demand is underserved and can partner with local educators to build out more of these options.

What comes next

If you're a parent in Arizona, we're now live - join the waitlist at pathfindercard.com. Arizona is the vanguard of school choice - the first state to make it universally accessible - and the place where we've spent the last year embedded with families, understanding every edge case and frustration. Click here to watch what parents are saying about us.

If you're an Engineer or Operator who is obsessed with our mission, we're hiring. This is our life's work. We're actively shaping the educational experience we want our own children to have in the future. We've already rejected an acquisition offer because we care about this being done right. This will be a big commitment. We're aiming high and we compensate you well with equity. If you're interested in shaping the future of global education with us, email join@pathfindercard.com.