MINNEAPOLIS, April 04, 2022 (GLOBE NEWSWIRE) — Kaleidoscope, a fintech platform driving education-based philanthropy, today announced that it has raised a $10M Series A round co-led by 3×5 Partners and Rally Ventures. The first fintech platform to connect sponsoring organizations, donors, and applicants, Kaleidoscope has facilitated over $370 million in scholarships and grants over the last two years. This investment comes in the wake of 2021 benchmarks including the launch of more than 6,500 programs, and their one-millionth user. Proceeds from the financing will be used to scale the business and invest in the launch of a first of its kind funds disbursement solution.
Deployment of private funds to support education is a multi-billion-dollar problem. More than $60 billion is channeled through sponsoring organizations to recipients to pay for higher education and advancement. In 2021 alone, 20 million kids attended college, 4 million for the first time. 85% of first year students received scholarship or grant aid. Shockingly, $3.7 billion in federal grant aid went unused by students based on a failure to complete the Free Application for Federal Student Aid, a notoriously arduous task. Much of this failure to identify those in need and distribute funds is the result of enormous financial and operational complexity which should no longer exist. Kaleidoscope exists to remove that complexity and get the necessary funds to qualified students.
Kaleidoscope Founder and CEO Greg Dehn, “Where government programs have failed, the private sector is stepping up. And, we believe in any future scenario, they will continue to do so. The bottom line is this – no qualified student in need should ever assume the burden of debt if they qualify for other means of funding. And no committed dollar should have such a hard time landing where it is needed most, in the pockets of students. The need on both sides is too great and the outcome is too important. Kaleidoscope’s platform eliminates this problem.”
Added Dehn, “Our partnership with 3×5 Partners and Rally Ventures opens new horizons for Kaleidoscope, allowing us to make critical investments in innovation and scale, with the aim of facilitating the transfer of scholarship funds from sponsor organizations to students. We’re grateful for their support.”
Joe Biller, 3×5 Partners Managing Director, added, “This is a special opportunity that we are proud to support. Based on their extraordinary market traction and size, it’s clear that Kaleidoscope addresses an urgent and considerable need — to seamlessly connect and facilitate the transfer of scholarship funds to scholars. We are excited to partner with this passionate team as they continue to do this important work and grow the business.”
Kaleidoscope is a cloud-based fintech platform enabling organizations to fund, design, administer, and host branded scholarship and grant programs. The platform uses leading technologies to deliver an end-to-end solution for sponsors, organizations, and those they support. Kaleidoscope is building a future where financial aid and funding solutions are smart, cost-effective, and as unique as the applicants they serve. Learn more at www.mykaleidoscope.com.