SM: In terms of revenue, what is the size of your company? RV: Our SAT business is at $11 million, and we are just over $13 million in total.
SM: What does a deal size look like for your company? Let’s use Los Angeles Unified as the example. RV: The LAUSD contract ends up being between $500,000 and $600,000 annually.
SM: Are you primarily a brick-and-mortar tutoring service, or are you an online education service? RV: The SAT prep courses are 90% offline and 10% online. However, we have another larger business that we started in California and Texas three years ago which is 100% online.
SM: What kinds of learning challenges do you help your students to overcome? RV: A lot of students have a hard time reading long passages. They read something and then realize they have no idea what they just read. To counter this, we teach kids how to actively read by asking themselves questions after each
Revolution Prep was founded 2002 by Ramit Varma and Jake Neuberg, who met at UCLA’s Anderson School of Management. Founded in 2002, Revolution has become the largest provider of SAT prep courses and tutoring in California and one of the largest providers nationwide, with students in 12 states. Building on the success of its SAT program,
SM: You brought in $3 million in the first year and a half of the company. By 2003 you had a product ready. Did you then go out and raise money? LM: Once we launched the product and sales started to take off, we realized that it was a bigger play. We were approached by VCs
SM: Who is your competition? Why can we assume that NextGen, Allscripts, and others are sitting around without a messaging system? LM: Kryptiq is the only truly open messaging system that can work with any EMR or practice management system. Some of the vendors you mentioned have messaging systems that they developed internally.
SM: What are the deal sizes for your sales? How does the money flow? LM: We have sales that encompass [everything from] extremely large institutions to very small, two-person clinics. Therefore, we have a pricing scheme that is volume based. High-volume customers do get a bit of a price break.