ClassWallet, a Miami-based company that streamlines the tracking of education funds, has closed a new minority investment from Brentwood Associates.
For Brentwood, a private equity investment firm, ClassWallet represents its fifth education-related investment. Several existing ClassWallet investors also participated in the funding round.
Founded by Jamie Rosenberg, ClassWallet is a platform for school systems to disburse and track funds. The company also is gaining traction with university athletic departments for per diem expense management, as well as with states for education savings account management, an integral component to school choice, Rosenberg said. ClassWallet is used in over 850 schools and in some of the largest school districts in the United States, including Los Angeles Unified.
The amount of the investment wasn’t disclosed, but Rosenberg said it was not part of the $1.1 million financing round ClassWallet raised in the fourth quarter of 2016 that brought the company’s total funding to more than $5.1 million. ClassWallet plans to use the new funds for sales and marketing. “We are getting great traction and have a scalable sales process in place, so it will be for accelerating growth,” Rosenberg said.
ClassWallet plans to release the latest version of its platform this month, which will allow schools to accept cash payments from parents without taking cash into the school building or classroom. Several districts are already working with ClassWallet to implement the solution. “Brentwood brings a variety of value-add capabilities, including digital marketing and salesforce expertise, which will allow us to invest in new customer acquisition efforts and expand our distribution,” he said.
Brentwood Partner Eric Reiter added: “ClassWallet aligns well with our strategy of targeting growing companies with a differentiated product offering and high levels of customer loyalty and satisfaction. ClassWallet’s patent-pending technology is highly innovative and satisfies a real need in a large addressable market.”