At the Central Asia Startup CUP, Elena Soboleva shared her journey—how she successfully raised $50 million in investments and turned Honorlock into a leading player in the EdTech sector. In her speech, she talked about the critical decisions, challenges of scaling, and growth strategies that helped the startup secure a strong position in the online exam monitoring industry.
About the Startup
Honorlock is an AI-powered online proctoring system that ensures academic integrity during exams. Launched in 2015, the service detects cheating behavior, notifies proctors, and identifies unauthorized devices. It also scans the internet for test questions posted online and issues takedown requests. Among the company’s clients are the University of Florida, the University of North Alabama, and Florida International University.
The path to entrepreneurship
At a recent panel on women in entrepreneurship, the first topic raised was how men support women in their startups. Every woman on the panel confirmed this involvement. This reflects not only personal experiences but also deeper social dynamics—many women still feel they need external support, even though they already possess the strength and competence to succeed on their own.
I want to encourage more women in Central Asia to launch businesses—not just to realize themselves professionally, but also to achieve financial independence. Wealth isn’t just about material success; it’s about having influence, making decisions, and having a voice. When I earned my first million, I saw how people’s attitudes toward me changed—and I realized that money is a tool for creating opportunities.
If I ever write a book, it will be about how a woman’s happiness doesn’t depend on others, but on her own strength and confidence. I want to remind all women: you have everything it takes to succeed, and you can achieve your dreams without relying on external approval. Good luck to all startups—believe in yourselves, and you will make it.
How it all started
In 2014, exhausted from work and studies, our team came in second place in a business plan competition. We had no developers, so we built the first prototype using Excel, with automated data syncing via the internet.
In 2015, after intense work, we hit burnout but chose not to abandon the idea despite its complexity. A year later, we applied to an accelerator and received our first investment—$150,000. At the time, we had only one technical specialist—the investor’s son, who was interning with us for the summer. He developed most of the system, and we filed a patent. That phase taught us the importance of leveraging every available resource.
When he left the company, we needed new engineers, but hiring was tough due to competition with major tech firms. Despite doubts, we found the right people through an agency and expanded the team to five. Our university became our first paying customer with a $25,000 pilot contract.
Investment and growth
By 2017, we had raised significant investment, but hiring top talent remained a challenge. People were wary of joining a startup, fearing reputational risk in case of failure. Nevertheless, our sales grew—from $25,000 to $350,000 over two years—and the company kept moving forward.
This journey was filled with challenges, but one key insight was that growth is often slow, even when it feels like nothing is moving. It’s essential to adapt, explore new opportunities, and embrace change. That’s how we evolved from an Excel-based prototype to a full-fledged product with real clients and investors.
By year five, our team had grown to 10, and we had five university clients. Revenue was still modest, but one of our major achievements was obtaining a technology patent—a rarity in the U.S., where most innovations are just digital adaptations of existing processes. Our unique method of detecting students who searched for answers using phones during exams stood out as truly original.
Yet, this innovation didn’t directly generate revenue. Our business model wasn’t based on selling individual features but rather on providing reliable infrastructure. This reflects a fundamental principle of tech businesses: success depends not on unique know-how, but on becoming an indispensable partner to clients.
After two years in an incubator, we moved into our own office. A seasoned sales manager joined the team and warned, “You won’t be able to handle the customer flow.” That was a wake-up call—we restructured our processes and began implementing scalable solutions.
Competitive analysis showed that existing systems either recorded the entire exam session or used automated video monitoring that lacked accuracy. As former students, we knew how easily video could be tricked. So we introduced a hybrid model: the system flags potential violations, and a human proctor confirms or dismisses the issue. This significantly boosted system effectiveness and met universities’ needs.
Challenges
In 2019, while the company was growing, we faced a new challenge—conflicts among the founders. Key decisions were increasingly made without input from core team members. As CFO, I was used to maintaining control, so it came as a shock when I learned that major expenses were being approved without me. This created serious tension, eventually leading one of the founders to exit the project—his share was bought out by investors.
This period underscored the importance of internal stability. Emotions and personal ambitions can threaten a company’s progress if left unchecked. One critical lesson: maintaining a balance between strategic goals and personal relationships is vital.
COVID-19: a turning point
The COVID-19 pandemic became a turning point for the company. Faced with an urgent shift to remote learning, universities rapidly adopted online proctoring systems, and demand for our service skyrocketed. The sudden influx of clients pushed our system to the brink, forcing us to implement rapid technical upgrades. New investors came onboard, providing resources and helping stabilize operations.
Personally, that period was transformative. I realized the company could now function independently, so I decided to start a family and planned to return to the finance team. But within two months, the department was already staffed with top-tier professionals, which led me to reconsider my career path.
After closing a successful $25 million funding round, the company opted for a strategic exit without further fundraising. This process involves years of negotiations with potential buyers and a deep understanding of their timing and capacity.
A new chapter
While on maternity leave, I received a flood of mentorship requests from accelerators and startups. They weren’t looking for theory—they needed real-world strategies to solve problems. The demand was so high that I realized the need for a structured, scalable mentorship model.
That’s when the idea for a new business emerged. In the U.S., such mentorship platforms can evolve into full-fledged, sellable companies. I’m now building a new team of talent and working on this direction. It’s no longer just mentorship—it’s the next phase in my career.
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