Every parent could use extra help with their kids. Independent childcare providers across the country, however, have a hard time keeping up with the paperwork and administrative tasks necessary to legally provide childcare for families.
Chelsea Sprayregen noticed this problem among childcare workers and other caregiving-related jobs while working as the director of public policy at BeneStream, a startup which connects qualified, low-income workers with government benefits. So, last March Sprayregen, along with her co-founders Hannah Meyer and Rebecca Karasik, decided to start Pie for Providers, a Chicago-based project management platform for independent childcare providers.
Last month, the startup raised $150,000 in funding from several undisclosed angel investors plus another $125,000 “firmly committed” to come, totaling $275,000 overall, Sprayregen said. The company aims to raise $500,000 from angel investors by June 2018. The company plans to expand into five new states by 2021, starting with nearby states like Michigan and others that have dense populations and available funding for childcare providers, Sprayregen said.
“We’re bringing basic business software into the childcare space,” Sprayregen said. “Over and over, [childcare providers said] that government paperwork was the hardest and worst part of their jobs. Even more importantly, they’re leaving money on the table which they can’t afford to be leaving on the table.”
The median salary for childcare workers is $22,290, according to 2017 Bureau of Labor Statistics show.
Currently, users can track business expenses, automate paperwork, manage casework and send reminders for critical deadlines. The funding will enable the startup to add features that will help providers manage their licensing, including a digital file cabinet for organizing annual inspections and tips on obtaining additional credentials. These features will help providers deduct business expenses from their taxable income and avoid income interruptions due to paperwork errors or missed deadlines, Sprayregen said.
The company aims to bring on about 900 Illinois childcare providers. Initially, 40 childcare providers tried Pie for Providers’ free pilot program, but the startup has since transitioned into a subscription model, with plans starting at $7 per month, though Sprayregen said the rates will increase eventually.
Aside from adding more features, the additional funding will enable the company to market to childcare providers throughout Illinois, Sprayregen said.
“Ultimately, the goal is to help them claim the money that they’re eligible for, particularly as we build up more robust features,” Sprayregen said. “We’re offering them a tool that is optimized in the most stressful part of their jobs… so they can spend less time and money on it.”
