TLDR: German EdTech startup paddy, founded by ‘teachers’ kids,’ has successfully raised €1 million in pre-seed funding led by High-Tech Gründerfonds (HTGF). The capital will fuel the expansion of its AI platform, launched in January 2025, which aims to alleviate teacher workload and enable personalized student support. The platform has already garnered over 12,000 active teacher users in the DACH region within six months.
Bielefeld, Germany – August 11, 2025 – paddy, an innovative German EdTech startup operating under DigitalErleben GmbH, has announced the successful closure of a €1 million pre-seed funding round. The investment, led by High-Tech Gründerfonds (HTGF), is earmarked to accelerate the development and expansion of paddy’s artificial intelligence-driven platform, designed to revolutionize the daily routines of educators across the DACH region.
Founded in 2024 by Matty Frommann (Co-founder and CEO), Lukas Portmann, and Tobias Schröder – all of whom are children of teachers and recently finished school themselves – paddy was born out of a deep understanding of the challenges faced by educators. CTO Lukas Kaufmann later joined the founding team. CEO Matty Frommann articulated the genesis of the idea, stating, ‘I saw firsthand as a student how overwhelmed many teachers were – no time for individual support, even though the intention was there. That’s what sparked the idea for paddy.’ This firsthand experience, coupled with daily conversations about overcrowded classes, endless grading, and the struggle to provide individualized attention, fueled the creation of their solution.
The paddy AI platform, officially launched in January 2025, has rapidly gained traction, attracting over 12,000 active teacher users within just six months. The platform offers a comprehensive suite of tools aimed at streamlining the entire teaching cycle. Its functionalities include assisting with lesson planning, generating tailored teaching materials in various formats, providing digital tools for lesson delivery, and analyzing class performance. The core mission is to significantly reduce administrative burdens on teachers, thereby freeing up their time to focus on personalized learning and improving student outcomes.
The need for such a solution is underscored by alarming statistics. In the DACH region, approximately two million teachers serve over 40,000 schools. A study by Bitkom, the German Digital Association, reveals that over 70% of educators report feeling chronically overworked, and more than half indicate that larger class sizes prevent meaningful one-on-one interaction with students. Paddy directly addresses these critical pain points.
Felix Assion, Investment Manager at HTGF, expressed strong confidence in the startup, remarking, ‘paddy shows how we can reduce stress for teachers while helping students develop AI skills at an early stage. Beyond the impressive product, it’s the team that won me over: Despite their young age, the Founders already demonstrate remarkable entrepreneurial intuition – and I’m excited to see where the journey takes them.’
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With this new capital, paddy aims to further enhance its product features, expand its footprint across the DACH region, and forge partnerships with schools and education ministries. The company has set an ambitious target of achieving mid six-figure revenues for 2025. The pre-seed round reportedly values paddy at €1 million, signaling strong investor confidence in its potential to transform the educational landscape.
