Student financial aid startup Frank raised $ 10 million in an investment round led by Marc Rowan, co-founder of Apollo Global Management, with participation from Reach Capital and Aleph Venture Capital, an American-Israeli fund that had previously invested in insurance startup Lemonade and coworking startup We Work. The company announced the cycle in a statement last week.
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Aleph led a 2017 investment round in Frank, during which the startup raised $ 5.5 million.
Founded in Tel Aviv in 2016 by former banker Charlie Javice, 25, Frank operates out of New York and Tel Aviv. The company was created to simplify the process of finding and applying for financial aid opportunities for prospective higher education students.
Specifically, Frank is targeting FAFSA, or the Free Application for Federal Student Aid, the government system in which American students seek help, seen as heavily bureaucratic and easy to mess around with.
In the United States, the annual cost of a college education could reach tens of thousands of dollars. Many students and their families depend on student loans to attend university and accumulate substantial debt upon graduation. On the flip side, the US government invests billions every year in student aid programs, but some of the funding goes unclaimed, in part because of errors in applying for aid.
According to Frank’s website, the company’s service simplifies the application process, allowing potential students to apply in minutes. In addition, the company offers premium services in the form of audits and application advice and negotiates with universities for additional student support. According to the company, more than 200,000 students have received assistance worth more than $ 5.5 billion through the Frank platform since its inception.
“The higher education system in the United States is inefficient and it is time to make changes,” Michael Eisenberg, co-founding partner of Aleph, said in a statement. âIt is inconceivable that in the 21st century, when information is so accessible, people are being held back because they cannot afford an education. “