Course Hero is the latest edtech company to see an influx of interest from investors looking for innovative solutions to teaching outside of the classroom during the pandemic. The company joins edtech giants Quizlet and Coursera in what has been a profitable year for alternative education tools and the businesses behind them.
Course Hero announced it raised $70 million in a Series B extension round first reported by TechCrunch on Wednesday. The latest investment brings the total for the round to $80 million at a $1.1 billion valuation, solidifying the company’s unicorn status. The additional capital will be used to expand operations, develop new features and invest in product research.
The San Francisco-based platform got its start in 2014 as an online destination for students to share notes, assignments and course materials with their peers. In 2017, the company expanded its resource-sharing platform to include teachers. Now, education professionals have a space to share syllabi, test questions, presentations, lesson plans and more.
“We are energized and committed to help more students ask and answer questions, study and graduate, confident and prepared. Students, more than ever, need more accessible tutoring and study help,” Andrew Grauer, CEO of Course Hero, said in a tweet.
The company currently sells subscriptions to students looking for access to educational content. Although there is a “freemium” model available, an annual subscription costs $9.95 per month and a monthly subscription costs $39.99 per month.
The platform also doubles as a space for professional educators to build on and expand their personal brands. On Course Hero’s platform, educators get their own profile page where they can list all of their credentials, publications and awards. The platform allows for educators to connect within and across learning institutions, similar to LinkedIn.
“We’re trying to help educators find and create teaching materials and assessment materials, while helping them get recognized and celebrated for what they do,” Grauer told TechCrunch.
The round was led by NewView Capital. The venture firm also purchased company shares held by Course Hero employees for an additional $30 million in an employee tender offer.
According to the company, following its Series A, Course Hero had previously gone six years without raising any additional capital. The company has gone on to close two rounds this year alone.
Course Hero has raised $97.4 million in venture capital to date, according to Crunchbase.
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