Frank, a new New York-based student-facing startup, has banked $5 million in an interim strategic round. According to the company’s CEO Charlie Javice, previous investors, like Marc Rowan and Aleph, took part in the funding round. Moreover, a new investor, GingerBread Capital, also took part in the funding round.
The education funding startup raised a huge capital in December 2017 when it raised around $10 million in Series A funding round. Frank raised around $5 million in a seed round in the same year.
Javice states that the firm closed its round in March. There is always a lag between when a round is closed and when it is announced. Overall, Frank is doing amazing things. So, let’s talk about the company’s business and how its business has evolved with the changing market.
To keep the debts low, Frank helps students to get through difficult times and collect as much aid as possible without borrowing. Moreover, American higher education is quite expensive, and applying for financial aid is quite annoying. Therefore, Frank plans to make college more affordable for students. The company stated that many startups are working to help students sort out their debts in less expensive ways.
Javice states that many students aren’t able to finish signing up for federal aid programs. Moreover, several students drop out of the programs before finishing, which leaves them with a huge amount of debt without any degree.
According to Javice, Frank was quick in rethinking its growth in comparison to the other startups in the market. In 2019, Frank slowed down its growth to get closer to its goals.
According to Frank’s CEO, the company didn’t need much cash before this round. Thus, this round was a vote of confidence than a necessity.
The company needs to adjust to the new COVID-19 world. It is located in the U.S., where the death toll is the highest. Javice said that the company needs to adjust to new realities, like everyone else. She added that “the company is getting a big demand for financial aid and higher education.”
