👩🏫 Backing Futura
Hi, it’s Alexandre from Eurazeo. I’m investing in seed & series A European vertical solutions (vSol) which are industry specific solutions aiming to become industry OS and combining dynamics from SaaS, marketplaces and fintechs. Overlooked is a weekly newsletter about venture capital and vSol. Today, I’m sharing more insights about our latest investment at Eurazeo in an Italian edtech startup called Futura.
With Carole, we are delighted to share that Eurazeo invested in Futura leading the company’s €14m Series A alongside Axon and United!
We believe that technology and AI should be leveraged to make higher education more accessible. Futura is contributing to this vision by establishing a new standard in Southern Europe, helping students prepare for standardized tests required for crucial professions like medicine and the military.
As you know, in 2022, I began to more closely cover the Italian tech ecosystem for Eurazeo. At the time, I had a strong conviction that the ecosystem was maturing and that we should spend more time in the country to identify the next Italian success stories, following companies like Satispay, Scalapay, Bending Spoons, Casavo, FaceIt, or MusixMatch. After meeting numerous entrepreneurs, operators, and investors in the country, I'm more bullish than ever on the ecosystem, particularly on the new wave of Italian startups that are between pre-seed and Series A.
During our journey to explore the Italian tech ecosystem and identify the best early-stage startups to invest in, I met Andrea, Futura's cofounder and CEO, for the first time in October 2022 via Zoom, and then a couple of weeks later in our offices in Paris. I knew from the get-go that we had found a gem! Futura has a highly talented team with strong execution skills, targeting a large and non-competitive market. It took us more than a year to build a relationship with the team before deciding to partner with them.
Andrea, Francesco and Lorenzo cofounded Futura out of university on the insight that standardised tests preparation for higher education in Italy was completely broken. You only had expensive solutions like private tutoring and offline preparation courses to increase your odds of success to pass a standardised test. They built a platform that offers an affordable and flexible online alternative that is as personalised as private tutors.
Futura started with the medical entrance exam, which Italian high-school students must pass to study medicine at university. The company is on track to become a major Italian player in test preparation for this exam. It has tripled its revenues annually since its inception, while remaining consistently profitable. The company has also started to expand into other verticals, such as other healthcare studies and the military.
If you delve into Futura’s platform, you'll see that students start their experience with a test simulation that automatically generates a personalized study program. Students can access customized live and recorded lectures, tailored tests, and AI tutoring, supplemented by real-life tutors for complex questions. Additionally, the platform is gamified and social, allowing students to track the progress of their friends and other students preparing for the same test.
At its core, Futura has built a tech engine with an algorithm that optimizes students' study methods by selecting the next best action. To further support students, Futura also developed "Alice," an AI virtual tutor who uses Large Language Models (LLMs) to generate custom explanations and learning materials, tailored to the student's level, knowledge, and style.
Futura will use this funding round to expand the team, further integrate AI into its platform, open new verticals and expand internationally. The company aims to train 100k students within the next 5 years!
Thanks to Julia for the feedback! 🦒 Thanks for reading! See you next week for another issue! 👋