Information on the Target

Inquisitive is an innovative EdTech software company dedicated to transforming primary school education by facilitating efficient lesson planning for teachers. The company provides high-quality, curriculum-aligned, interactive learning resources, enabling educators to focus on delivering impactful teaching experiences.

Recently, in December 2024, Jelix Fund 1 participated in Inquisitive's AUD $6.5 million Series A extension round, led by Premier Capital Partners. This investment represents the third follow-on investment by Jelix Ventures into Inquisitive, which began its partnership during the company’s Seed round in 2018. Moving forward, Inquisitive aims to expand its footprint in the U.S. market, furthering its mission to simplify access to quality learning, enhancing teacher enjoyment and student engagement.

Industry Overview

The educational technology sector is experiencing significant growth, particularly in the context of primary education. In both the U.S. and Australia, primary school teachers are burdened with extensive lesson preparation obligations, averaging around 300 hours each year. This equates to an astounding 557 million hours of combined time wasted on redundant efforts, hampering teacher satisfaction and student performance.

Inquisitive has successfully tackled this issue within Australia, boasting widespread adoption across schools; in fact, it has achieved complete penetration in New South Wales government institutions. The company's revenue has shown steady growth at approximately 25% year-on-year. Now, Inquisitive is shifting its strategy towards expanding into the U.S. market, where it has already established a presence in 49 states, although further localization and marketing efforts will be essential for deeper penetration.

The primary education market is vast, with an estimated 1.8 million teachers in the U.S. and Australia alone. Given the projected annual revenue per user (ARPU) of $350, the total addressable market in these regions exceeds $630 million. Achieving even modest penetration could lead to annual recurring revenue (ARR) of around $50 million, showcasing significant opportunity for growth and scalability.

The Rationale Behind the Deal

The investment decision by Jelix Ventures is strongly influenced by the pressing need for effective educational solutions. Inquisitive's platform addresses critical challenges faced by teachers, helping to reduce their workload significantly. An independent evaluation of Inquisitive's offerings has indicated that its product saves educators about 12 days of work each year while simultaneously enhancing the quality of lessons and promoting teacher well-being.

The confidence in Inquisitive is further bolstered by the outstanding leadership of its Co-founder and CEO, Tim Power, who possesses a demonstrated track record in scaling EdTech businesses. This reassurance, combined with Jelix’s ongoing partnership, underscores the potential for substantial returns from this investment.

Information About the Investor

Jelix Ventures is a recognized player in the investment landscape, particularly within the education sector. Their focus on innovative companies such as Inquisitive demonstrates a commitment to enhancing educational experiences and outcomes. With seasoned investors like Ian Gardiner actively involved on the board, Jelix is well-positioned to provide strategic guidance for Inquisitive's expansion efforts.

Having invested in Inquisitive across multiple funding rounds, Jelix Ventures showcases strong conviction in both the company and its market strategy. This legacy not only enhances investor confidence but also actively supports the leadership in executing growth strategies efficiently.

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This investment in Inquisitive stands as a compelling opportunity within the EdTech sector. With the company's proven traction in Australia, a differentiated product offering, and a solid leadership team backed by Jelix Ventures, Inquisitive seems well-equipped to scale its operations effectively. The growing global demand for streamlined primary education solutions further highlights the potential for significant returns.

However, challenges remain, particularly in penetrating the U.S. market, which may require considerable localization and marketing investments. The competitive landscape featuring established players necessitates focused strategies to gain traction. Despite these hurdles, the long-term outlook for Inquisitive remains optimistic, given its unique value proposition and the supportive infrastructure provided by Jelix Ventures.

In conclusion, while the path to success may be fraught with challenges, the potential upside for Inquisitive is considerable, making this investment a strategic move in a booming industry.

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