Upkid raises $1.7 million pre-seed round to attack labor shortage
Summary
Lehi ApkidoAn on-demand marketplace for childcare centers and educators, announces $1.7 million pre-seed investment Newfund Capital, Corazon CapitalAnd Beehive Venture Partners, Upkid will use the capital to hire key employees and expand into new markets.We are thrilled to partner with passionate investors to expand on UpKids early traction and create real penetration into the market that affects so many people in the US, says Tyler Morgan, UpKid co-founder and CEO. We need decisive action now, and we are committed to using all of our resources to be part of the solution.UpKid is a two-way online marketplace that matches qualified child care workers with licensed facilities and preschools. Morgan and Allison formed Upkid in response to the COVID-19 pandemic intensifying an already challenging child care problem for American families: Four children need child care services for each location available (Center for American Progress) The number of women in the US workforce declined by 1.8 million amid the pandemic, the lowest number since 1988 (US Bureau of Labor Statistics) 62 percent of parents say they struggle to find affordable child care (Pew Research) Daycare has room for more children but operates at half capacity due to staff shortages (National Association for the Education of Young Children)This problem hits close to home because I was raised by a single mom during my formative years and spent 10 years in daycare, Morgan says. Labor shortages have strained the nations 850,000 child care facilities, forcing them to operate well under capacity and denying millions of American families these vital services.Upkid allows child care providers to operate more efficiently and flexibly by hiring from a network of state-certified teachers on demand. At the click of a button, child care providers can schedule last-minute or long-term temporary teachers based on their changing needs.Formed in 2021, Upkid was part of the Techstars Atlanta Accelerator 2021 class.