5 Rules from the Founder: How an EdTech Project Can Attract Investments. The Case of the Online School “Logopotam”

Considering the existence of a huge number of startups, along with their active growth, the competition to get into that very 1% is incredibly high.

So how can you grab the attention of investors for your project and ultimately secure funding for development?

Let’s explore this using the case of the online school "Logopotam":

In 2024, the online school «Logopotam» raised an investment round of 40 million rubles to develop a 'virtual speech therapist' powered by artificial intelligence. The founder of the project, Alexey Litvinov, shared this achievement.

This is an important step for our project, which will allow us to create a convenient tool for diagnosing and developing children's speech. According to experts, the number of children with speech issues is growing and has already reached 40%. We are confident that artificial intelligence can significantly simplify the process of diagnosing and correcting speech problems, making it accessible to every family.

According to early investor and advisor Martin Kolhauser, «With the virtual speech therapist, diagnosis and training will be conducted without direct contact with a speech therapist. Children will develop their speech by playing in the app, while their parents can view detailed reports on speech improvement results in their personal accounts. Additionally, this tool, in the form of training modules, will become an essential assistant for speech therapists in their work.»

Among the new investors in the project are the founders of AiK-Invest, Datalab, and a top manager from a major bank.

We have ambitious goals aimed at improving the quality of speech therapy services and developing new technologies to assist children with speech disorders. The raised investments of 40 million rubles will be allocated to the following key projects:

1. Development of a Virtual Speech Therapist. This is an innovative tool powered by artificial intelligence. Our virtual speech therapist will not only assist children in practicing correct pronunciation but also make the learning process fun and interactive. Through the mobile app, children will participate in game-based sessions, while the system adapts to each child's unique needs.
2. Creation of a Progress Tracking Program. We will provide parents with an easy and regular way to monitor their child's speech development. The new system will allow parents to see both improvements and potential setbacks in the learning process, enabling quicker adjustments to teaching methods.
3. Team Expansion. To achieve our ambitious goals, we plan to grow our team of professional speech therapists and development specialists. This will enable us to implement innovations more quickly and maintain a high level of service.
4. Marketing and Expansion into New Markets. To attract more users and expand our reach, we will invest in large-scale marketing campaigns and brand development.

Our updated mobile application will be available in app stores in November 2024. Everyone will be able to test the new features by downloading the app and experiencing the capabilities of our innovative speech correction program.

We are confident that the combination of cutting-edge technologies and professional expertise will deliver tangible results and help many children overcome speech difficulties.

1. Demonstrate sustainable growth. Investors are interested in startups that show consistent growth. Ideally, this should be reflected in recurring revenue that grows exponentially — a dream scenario for any investor. However, even if your startup is simply increasing its revenue rapidly, this is already a significant advantage. Key metrics here also include user registrations, traffic, and other indicators that demonstrate business growth. It’s important not just to claim growth but to visually demonstrate it using graphs and charts. These visuals help investors quickly assess your project’s dynamics and potential.
2. Highlight the market size. It’s equally important to showcase the size of the market. Investors want to see that there’s potential for the company’s value to grow tenfold or even a hundredfold. For example, a startup offering consulting services for exotic pets in Russian may be profitable, but its market is too narrow to become a billion-dollar company. Most investors look for projects with scalable potential, and if your business doesn’t meet these criteria, it might not attract interest.
3. Focus on unit economics. A key aspect is demonstrating that you can attract customers at scale for less than you earn from them. An ideal ROMI (Return on Marketing Investment) should be at least 200%. This means that for every 1 million rubles spent on marketing, you should generate at least 3 million rubles in revenue. Such an approach to unit economics shows investors your ability to manage resources efficiently and grow the business sustainably.
4. Present a clear growth plan. Investors want to understand how exactly you plan to increase your market share and outperform competitors. You need to prepare a strategy that includes market research, competitive analysis, and a description of your product’s or service’s unique advantages. This builds confidence that your startup has a strong chance of success.
5. Prepare and practice your pitch. Preparing and practicing your pitches is a mandatory step. A confident presentation of your project and well-thought-out answers to investor questions, demonstrating a deep understanding of your internal metrics and market, play a decisive role in securing funding. You need to polish your pitch to the point where you’re ready to discuss your project details in any situation.

To find investors, submit applications to accelerators and investor clubs, and register on investment platforms. This will get you invited to pitch sessions, where you can present your project to a wide audience of investors. Participating in such events not only increases your chances of success but also helps you establish valuable connections in the industry.