Paper Secures Fourth Round of Funds As the US Drawn to Tutoring Tech

The Montreal-based start-up Paper received CAD 343 million in its latest round of financing. 

This addition brings the company’s total funding to around CAD 496 million since 2020 at the start of the Covid-19 pandemic. The secured funds are going towards meeting the US demand for Paper’s K-12 educational support system with online tutoring technology, while Paper waits for a more enthusiastic response from Canada’s schools’ districts.

Coming about less than a year after the last funding boost, Paper’s new round of finance funding is thanks to two new investors. Sapphire Ventures and SoftBank Vision Fund II both spearheaded the new round. Many previous investors joined, including Salesforce Ventures, Bullpen Capital, and Red House Education.

Institutional Venture Partners, the prime investor of the previous round of funding, also took part in the newest round. Both primary and secondary capital made up the $343 million of this fourth bout, and while some investors sold shares, all retained some stake in the company. 

Paper’s tutoring technology is taking off in the US, where almost one hundred percent of its customers reside. Paper focuses on giving K-12 students one-on-one online tutoring at any hour of the day, allowing kids of all backgrounds and financial situations to receive the help they need. 

Phil Cutler, the co-founder of Paper, noticed a disparity between students when he worked as a teacher. Namely, he saw that students from poorer households often had gaps in their education because they could not afford to receive tutoring. 

With cost-effective resources, live help, and writing feedback, Paper provides a solution to academic inequities in elementary and high schools. The Covid-19 pandemic helped to shed light on the issues involving resource shortages for underprivileged students.