VEDX Solutions is currently raising funds on NetCapital at a valuation of $9.2 million. While the company has shown a fair traction with built MVP apps, signed partnerships with VR education content providers, and relationships with schools considering their product, the valuation seems slightly overinflated. The revenue multiple of 12.10 suggests that investors may be paying a premium by investing now. However, this round's valuation is lower than the company's recent SAFE raise at a $15 million valuation cap.

VEDX Solutions generated $761,792 in annual revenue with a 23% annual revenue growth rate. However, the low margin level indicates that the company's profitability may be limited, which raises concerns about its valuation.

While VEDX Solutions has a compelling business model, offering a subscription-based platform to facilitate the adoption of VR applications in schools, investors should carefully consider the price per share of $1.63 and the overall valuation. Given the current stage of the company and the potential risks associated with its profitability and market competition, investors may want to approach this investment opportunity cautiously.

The adoption of virtual reality (VR) in the education sector is on a steady rise, driven by the increasing recognition of attention deficit disorders and the limitations of traditional classroom learning. Incorporating VR in classrooms enhances student engagement and learning outcomes by creating immersive, hands-on learning experiences. VEDX Solutions operates in this promising market, offering a subscription model that bridges the gap between schools and VR applications. Still, VR in classrooms is a new concept. Teachers and schools may hesitate to adopt VR because of its costs, concerns regarding kids' expositions to screens, and the negative environmental impact of the production of VR headsets and the energy they use. Adopting VR headsets in every classroom isn't compatible with efforts to reduce the human impact on the environment and diminish our good consumption and energy usage to mitigate climate change.


The US market for VR in K-12 education, VEDX Solutions' target market, is growing at a rate of 30.07%. Despite its relatively small current size of $302.51 million, the strong growth rate suggests significant potential. The COVID-19 pandemic has further accelerated the demand for effective remote learning solutions, including VR technology, which offers immersive experiences for students.


However, the market is not without challenges. High market regulation means VEDX Solutions must ensure its products adhere to the rules and standards set by education and technology authorities. The need for high capital intensity could pose a barrier to entry and growth, particularly for a startup like VEDX Solutions. Moreover, while the technology has gained wide recognition, market acceptance remains relatively low, particularly in educational institutions. This may be due to factors such as cost, lack of technological infrastructure, or resistance to change in traditional educational methods.


The VR in the education market is moderately competitive, with major players like Lenovo, ClassVR, and Victory XR already established. However, VEDX Solutions' selling proposition - a subscription model offering a flexible content library, protected student spaces, and training for educators - may attract customers.


Overall, while the VR in the education market presents promising growth opportunities, VEDX Solutions will need to navigate regulatory hurdles, capital intensity, and competition to establish and grow its presence successfully.

Jay Schnoor is the founder and CEO of VEDX Solutions. While he has limited experience in education, he has a background in marketing and recruitment. As the CEO, Schnoor is responsible for driving the vision and strategy of the company. He owns 23.5% of the company.

Lance Powell serves as the CTO of VEDX Solutions. He is also a lecturer of Virtual Worlds at Bahçeşehir University in Istanbul, Turkey. Powell has extensive experience in community and event organization related to extended reality (XR) and is one of the founding members of the flagship VR First lab in BAU. He is an XR Bootcamp instructor, providing training to educators looking to integrate virtual spaces into their curriculum. Powell is actively involved in organizations such as Zero Events and Euromersive, which support the XR community. He is a regular presenter at conferences on technology and game design, sharing his expertise on art and education in relation to the Metaverse.

The team at VEDX Solutions is small, with only three members and two advisors. While the team has complementary skills, there is limited diversity within the team and an overall lack of industry experience and connection with potential customers.

VEDX Solutions is entering a slightly competitive market with its VEDX Classroom subscription model. While the company does have a number of partnerships with VR education content providers and has developed relationships with schools in the US, it faces competitors such as Lenovo, ClassVR, and VictoryXR. These competitors have already established their presence in the market and offer similar solutions for VR implementation in K-12 education.

VEDX Solutions differentiates itself by offering a flexible content library, protected student spaces, and training for educators. However, the level of differentiation in terms of quality and price is low, as the company's offerings are similar to those of its competitors. VEDX Solutions does not have any patents to protect its technology, which could potentially make it easier for other players to enter the market and offer similar solutions.

Overall, VEDX Solutions will need to continue to differentiate itself and demonstrate its value proposition to stand out among its competitors. With a clear focus on the education sector and partnerships with VR content providers, the company has the potential to carve out a niche in the US virtual reality in K-12 education market. However, it will need to continuously innovate and adapt to changing market dynamics to maintain its competitive edge.

VEDX Solutions has built minimum viable product (MVP) apps for job shadows and college exploration, which are integrated into the VEDX Classroom platform. VEDX Solutions has also signed partnerships with 22 VR education content providers, including ManageXR, VictoryXR, and Remio. These partnerships enhance the content library available to educators and students using the VEDX Classroom platform.

VEDX Solutions has developed relationships with over 50 schools in the US that are considering adopting its VR education solution. This demonstrates the company's ability to generate interest and attract potential customers. Additionally, VEDX Solutions has deployed a paid pilot program in Panama, indicating its commitment to expanding its reach beyond the US market.

Financially, VEDX Solutions has maintained a low burn rate, which is positive for the company's sustainability. However, the company's low margins may pose challenges to its growth potential. It is important for VEDX Solutions to address this issue to ensure long-term profitability and scalability.

In terms of financial performance, VEDX Solutions reported annual revenue of $761,792 with a growth rate of 23% compared to the previous year.

VEDX Solutions operates under a B2B distribution model, targeting educational institutions as its primary customers. The company's recurring revenue model, through its subscription-based VEDX Classroom platform, provides a stable revenue stream. This aligns with the addressable market of US Virtual Reality in K-12 Education, highlighting the company's focus on a specific segment of the education industry.

Overall, VEDX Solutions has demonstrated promising progress in its product development, partnerships, and customer acquisition efforts. However, the company should address its low margins to ensure sustainable growth in the competitive landscape of VR education solutions.

Investing in VEDX Solutions comes with certain risks that should be considered. The adoption risk is very high as schools may not have the budget to invest in VEDX's virtual reality (VR) education service. Teachers may also be resistant to the idea of using a new technology for children's education, especially without a clear understanding of any potential negative effects of VR on kids. Additionally, some teachers may prefer to maintain screen-free environments in the classroom, and others may lack the necessary knowledge and willingness to learn how to use VR technology.

VEDX Solutions also faces competition from established players in the market, such as Lenovo, ClassVR, and VictoryXR. These competitors may have more resources and market presence, which could pose challenges for VEDX in gaining market share.

Financially, VEDX Solutions has generated relatively modest revenues in the prior fiscal year. VEDX Solutions' sales cycle with schools are long and the company may need time to scale sales and distribution - which would accentuate its need for capital.

Overall, investing in VEDX Solutions carries risks related to adoption, competition, financial performance, market acceptance, and the need for significant investments in sales and marketing. These factors should be carefully considered before making an investment decision.

VEDX Solutions is positioned to capitalize on the growing demand for virtual reality (VR) applications in the K-12 education sector. With its subscription-based platform, VEDX Classroom, the company offers a comprehensive solution to bridge the gap between schools and VR technology. This unique offering includes a flexible content library, protected student spaces, and training for educators, enabling seamless integration of VR into the curriculum.

The market potential for VR in K-12 education is significant, as schools increasingly recognize the value of immersive and experiential learning. VEDX Solutions is well-positioned to capture a share of this market, with its range of experiential learning apps, historical simulations, and real-life scenarios. By providing educators with the tools and resources they need, VEDX Solutions empowers schools to enhance the learning experience and engage students in new and exciting ways.

VEDX Solutions has already gained traction in the market, with a growing user base and strategic partnerships. The company's revenue growth is promising, with a small 23% increase in annual revenue. This demonstrates the demand for its products and the effectiveness of its business model.

VEDX Solutions operates in the competitive market of virtual reality applications for K-12 education. While the company offers a subscription model and a flexible content library, the market already has established players such as Lenovo, ClassVR, and VictoryXR. These competitors have likely already captured a significant portion of the addressable market, leaving limited room for VEDX Solutions to gain market share. Furthermore, the lack of patents or unique technological advancements puts VEDX Solutions at a disadvantage against its competitors in terms of product differentiation.

Additionally, VEDX Solutions is currently slightly overvalued with a valuation of $9.2 million. This valuation seems excessive considering that the company has only raised a total of $194,000 so far and has limited revenue of $761,792. The revenue multiple of 12.10 suggests that the company's valuation is not justified based on its current performance and growth prospects. The company's low margin level further raises concerns about its ability to generate sustainable profits.

Considering the competitive landscape, the company's current financials, and the lack of unique value propositions, investors should approach an investment in VEDX Solutions with caution.

VEDX Solutions is a company that provides a subscription service to bring virtual reality in schools. With its VEDX Classroom, it offers a flexible content library, protected student spaces, and educator training to support VR implementation in K-12 and higher educational institutions. The company's products include experiential learning apps, historical places, time period apps, real-life simulations, and related equipment.


The company has successfully built MVP apps for job shadows and college exploration to go inside the VEDX Classroom. It has also signed partnerships with 22 VR education content providers and developed relationships with over 50 schools in the US that are considering its product. Additionally, VEDX Solutions has deployed a paid pilot in Panama.


However, the company's pre-money valuation of $9.2 million may be considered overvalued, given its current financial performance and market potential. The company has low margins and could face adoption difficulties and long sales cycles. Nevertheless, the demand for experiential learning platforms has been steadily increasing, particularly in the education industry, which could provide a favorable market environment for VEDX Solutions.


In conclusion, while VEDX Solutions has made some progress in its operations and has a promising product offering, potential investors should consider the company's financial performance, margins, adoption risks and valuation before making an investment decision.