Spectrum Equity has invested in OurFamilyWizard, a tech-enabled co-parenting application the firm expects to grow through new products and marketing, Ben Spero, a partner at the firm, told PE Hub.
OurFamilyWizard, based in Minneapolis, Minnesota, provides a mobile application and a website that helps divorced and separated parents manage their custody schedule, as well as children-related expenses and appointments, in one place.
The company simultaneously announced the appointment of Nick VanWagner as its new CEO. VanWagner formerly was a senior vice-president of When I Work, an employee scheduling software company.
The growth investment will help OurFamilyWizard accelerate growth through marketing and sales, improved design of the app and user interface, and new products and functionalities, according to Spero, who led the transaction for Spectrum.
“It’s still not a company that is super well-known, even in its core demographic,” Spero said, speaking to the opportunity to grow its user base.
Some of the company’s functionalities include in-app messaging, calendar management where parents can swap weekends for child custody or manage logistics and expenses, as well as use an activity board through which pictures and videos can be shared.
The company operates under an annual subscription model and costs $99 per parent for the cheapest plan.
Because the business is subscription-based and its services continue to be relevant for parents during covid-19, the company hasn’t been significantly impacted by the global pandemic, Spero said.
According to Spero, the business is profitable and growing.
In February, OurFamilyWizard had massive spikes in the input of medical records such as immunizations and health conditions, with an over 50 percent increase on last year, the investor said.
The company’s check-ins and journaling have also seen a consistent 50 percent jump over last year, meaning parents and kids are sharing more files, photos and videos, Spero said.
The investment is consistent with the firm’s focus on consumer internet, services and information businesses. Some of Spectrum’s more notable investments also play within the lifestyle consumer application space, such as Headspace, Ancestry.com, AllTrails and The Knot Worldwide.
Most of Spectrum’s work around the investment happened before covid-19 hit the US, with a proposal to invest in the company in late 2019, Spero said. Although the coronavirus crisis escalated amid the firm’s due diligence and legal negotiation with the company, it chose to move forward with its investment, he added.
“We still felt very strongly about the opportunity so this was sort of a bridge between the pre-corona and corona world,” Spero said.
The capital for the deal came out of Spectrum Equity Fund VIII, which closed on $1.25 billion in October 2017.
Action Item: Check out recent Buyouts’ coverage of Spectrum’s acceleration of a first fund close.