The pandemic brought the importance of childcare to the forefront and on the national stage. As providers scaled backed operations and shuttered, access to reliable and affordable childcare options became critical. WeeCare is the largest childcare network that serves as a tech-enabled, modern marketplace that connects various types childcare providers (daycare, nannies, babysitters) with parents. The company also operates an employer-sponsored childcare benefits program that’s instrumental in boosting employer productivity by ensuring their employees do not have to worry about securing and paying for childcare. A look at WeeCare’s site indicates that they have ~90K providers available right now in the markets they are currently active in – Mid-Atlantic, Northeast, and the West Coast. As national sentiment transitions from viewing childcare as a nice-to-have to an essential portion of our economy, Weecare is poised to serve the millions of parents with options.
LA TechWatch caught up with WeeCare CEO and Cofounder Jessica Chang to learn more about the business, the company’s strategic plans, latest round of funding, and much, much more…
Who were your investors and how much did you raise?
We recently raised our $12M Series A to double down on WeeCare’s Childcare Benefits program. The round was led by M13, with participation from Gopher Asset Management and existing investors Equal Ventures and Fika Ventures, which brings our company’s total investment to $22.3 million.
Tell us about your product or service.
WeeCare is the largest network of childcare providers in the United States. Since 2017, WeeCare has been working toward solving the childcare crisis. We provide employer-sponsored childcare benefits so working families have access to affordable, high-quality childcare. Our childcare providers are able to operate sustainable businesses through a technology-based marketplace.
What inspired the start of WeeCare?
I launched WeeCare.co in 2017 alongside cofounders Matt Reilly (CMO/CPO) and Jesse Forrest (CTO). I’d recently had my first child, and was experiencing difficulty finding care for my infant. I quit my job as a VP of Marketplace at a tech company to become a preschool owner-operator. While in the system, I noticed that high overhead costs and low retainment of teachers were some of the industry’s primary challenges. I wanted to find a solution to help childcare providers run their businesses and make it easier for parents like me to find accessible and affordable quality childcare options. We initially launched WeeCare’s marketplace, and later added our employer-sponsored Childcare Benefits program.
How is it different?
- WeeCare has the largest network of childcare providers in the U.S. It is a full-service marketplace where families can connect with caregivers. As of early 2022, there are more than 5,000 daycares and 50,000 babysitters and nannies in our community.
- WeeCare works with employers to create flexible childcare benefit programs their employees actually use — thanks to our expansive network, support for all types of schedules, the range of care options, nationwide coverage, and affordability. The average cost of tuition through WeeCare is about 40% less than the average monthly center-based care.
- WeeCare ensures quality by vetting licensed daycare providers for experience, among other things. Parents can customize their care according to their family’s needs.
What market are you targeting and how big is it?
The U.S. childcare market was valued at $54.3 billion in 2019 and is expected to expand at a compound annual growth rate of 3.9% from 2020 to 2027.
What’s your business model?
WeeCare is a B2C and a B2B company.
Parents use WeeCare.co to find, tour, and enroll with the perfect childcare provider for their family. WeeCare updates families via our app with messaging, photo and video updates, and health and safety features. Childcare providers are supplied with the support and tools they need to manage and grow their businesses.
WeeCare has also developed flexible childcare benefits options that employees seek from their current and prospective employers. We match families with the right providers able to offer care tailored to a family’s specific needs, increasing the value of the benefit to both employer and employee. Childcare benefits are key for decreasing employee absenteeism, increasing team satisfaction, and reducing employee turnover — all of which underscore WeeCare’s impact in the childcare space.
What are your post-COVID office plans?
During the pandemic, we were excited to welcome new team members from all over the United States. With our team growing so much in a variety of different cities, we went fully remote at the beginning of 2022.
What was the funding process like?
We were looking for venture funds that believed in using technology for solving glaring, systemic problems — such as the childcare crisis. It’s a tough topic to fundraise for! Although almost one in five U.S. families spends more than 25% of their income on childcare, it hasn’t necessarily been a lucrative business. Until COVID, childcare wasn’t really a high priority on VC’s radar. But as more than 5 million women left the workforce at the beginning of the pandemic to take care of their children, employers and investors started realizing the true value of childcare and its importance in retaining and attracting talent. Some of the VCs who said “no” to us at first eventually came back to continue the conversation.
What are the biggest challenges that you faced while raising capital?
Raising money is still challenging for female founders, especially in the world of tech. There are a growing number of female entrepreneurs and investors, but the startup space is still lacking gender diversity. It requires women to be one step ahead of the game, paying more attention to detail, and contributing more energy and time. Not to mention having to juggle childcare and work.
What factors about your business led your investors to write the check?
At first, I believe investors looked into our background and experience. WeeCare was built by a team of educators, preschool owners, and technology innovators with over 30 years of experience in early childhood care. So, investors bet on our team. Secondly, we built a simple-to-use product that was solving a not so simple issue. And we developed a sustainable business model that backs our mission — we get care providers the compensation they deserve. The third component that really helped to move the needle is our employer offering. Our solution creates an opportunity for companies to be involved in a societal change. It’s a new and exciting space, and it’s growing fast!
At first, I believe investors looked into our background and experience. WeeCare was built by a team of educators, preschool owners, and technology innovators with over 30 years of experience in early childhood care. So, investors bet on our team. Secondly, we built a simple-to-use product that was solving a not so simple issue. And we developed a sustainable business model that backs our mission — we get care providers the compensation they deserve. The third component that really helped to move the needle is our employer offering
What are the milestones you plan to achieve in the next six months?
We plan to continue building the company’s caregiver network and improve our platform to raise the bar for the growing number of families and employers using WeeCare.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Focus on building your network. Social media is such a strong force, and there is absolutely no one you cannot meet.
Don’t get discouraged when someone says “no.” Keep working on what you believe in, they might reassess and come to you later when the time is right.
Where do you see the company going now over the near term?
We are on the path to scale childcare benefits for the evolving workplace. Our ambition is to build the future of childcare that is accessible and affordable for all working families.
What’s your favorite outdoor activity in LA?
WeeCare’s first office was located in Marina del Rey, so it’s safe to say I’ve always loved being on the water. In my free time, I enjoy visiting LA’s beautiful beaches with my two kids and my husband.
