Bootstrapping an EdTech Venture to $6M, Ready to Scale with AI: Daniel Santos, CEO of Prepory (Part 5)

Sramana Mitra: So, you were acquiring families through SEO mainly.

Daniel Santos: Yes, primarily SEO.

Sramana Mitra: So, that was not limited to South Florida anymore?

Daniel Santos: Not at all. At that point, we started working with families internationally and across many U.S. states.

Sramana Mitra: Around 2018, how many families are we talking about?

Daniel Santos: Looking back at 2019, we were probably serving upwards of 100 to 200 families. We also increased the cost of our products at the time.

2020 was a difficult year globally, but it was special for us. Many families who previously might not have looked for online college admissions consulting started seeking it because their students lost access to school counselors. The question of whether they could rely on their school’s resources was no longer relevant—students were online. In 2020 and 2021, we signed on a lot of families, probably around 400. We had a much larger team, maybe 30 to 40 people.

Sramana Mitra: And they were doing the actual counseling work?

Daniel Santos: Yes. We brought on a program director, program manager, and program coordinator. Our headcount grew to sustain the families we were serving.

Sramana Mitra: Were they distributed or based in South Florida?

Daniel Santos: Our back-office team—marketing, sales, program leadership—was based in South Florida. But our counselors were intentionally remote because we worked with families across multiple time zones. We hired remotely to support that.

Sramana Mitra: And the price point now is higher? Around $4,000–$5,000 per family per year?

Daniel Santos: Yes. That was the price at the time. Typically, families stay with our program for four years if they start in ninth grade. Some start later, but the lifetime value of a ninth-grade client is four years.

Sramana Mitra: Are you still using the college prep courses you developed?

Daniel Santos: No. While the curriculum was redesigned for one-on-one counseling use, families hiring our service wanted personalized support. They didn’t want just a product. They wanted someone to guide their student, answer questions, and offer ongoing support. However, the courses were a great way to productize and serve less affluent students through schools or districts, which funded that offering.

Sramana Mitra: So, in 2020–2021, the business found traction. The model was one-on-one counseling for families?

Daniel Santos: Yes.

Sramana Mitra: But you still have some schools?

Daniel Santos: Yes.

Sramana Mitra: What was the distribution of the business in 2021, when you emphasized more on families?

Daniel Santos: Schools became less important in terms of revenue. Our school revenue was maybe $400,000 to $450,000. They didn’t make a huge difference in total revenue, but schools were attractive because of their renewability. Every year we had a guaranteed quarter-million or so from school clients, which provided some stability.

Sramana Mitra: Individual families expire after four years, whereas schools don’t. Is that what you’re referring to?

Daniel Santos: Exactly.

Sramana Mitra: What happens after 2021? Where were you revenue-wise at that point?

Daniel Santos: In 2021, we were maybe close to $2 million, around $1.8 to $1.9 million. The next few years—2022 to 2025—have all been really special for our business. In 2022, we continued to acquire more families and gained more traction. We became a better-known player in our space. It’s a small space, and the major players—us and others—know each other. Families typically compare six to seven providers before deciding.

This segment is part 5 in the series : Bootstrapping an EdTech Venture to $6M, Ready to Scale with AI: Daniel Santos, CEO of Prepory
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