In July, the business announced it is launching Educator Exchange, which allows college faculty to make money by uploading study materials for fellow teachers or students. Looking ahead, Course Hero hopes to continue to broaden its multisided marketplace. Over 25% of subscribers are 35 years old or older, and 22% of subscribers are parents. An internal data analytics survey of Course Hero shows that 58% of students that subscribe work at least part time. It’s not an opportunity the company hopes to expand into, it’s a reality of its diverse customer base. On a monthly plan, a subscription costs $39.99 per month. There is a freemium model, but on an annual plan, a subscription costs $9.95 per month. “Because that’s the reality, and because we can make an affordable subscription and the economics can work, Course Hero is aligned to serving the majority, the real majority, and that’s the beauty of opportunity,” he said. Over a quarter of students are parents, and of that quarter, over 70% are single moms. Grauer noted that more than 40% of students work 30 hours or more per week. He added that “if you raise too much money early on, you can get misaligned expectations based on different time horizons set up by different terms of incoming shareholders or investors.”Ĭourse Hero sees tailwinds in a dynamic that has been brewing since before the pandemic and will likely grow during and after: the growth of “nontraditional students” enrolling in and participating in higher education. “That’s the risk and reward of raising capital,” Grauer said. In other words, when the coronavirus pandemic ends, will these same platforms still find surges in usage? And we dramatically underestimate what we can do closer to 10 years.”Īny edtech company that raises money off of current momentum in remote education will have to face the reality of what it is like to grow when remote learning is no longer a necessity. Paraphrasing Bill Gates, Grauer said, “We do overestimate what we can do in just three years. Now, it is eyeing “many millions” of students, the co-founder says. Last year, it passed 1 million subscribers on the platform. It also plans to use the capital for future acquisitions (in 2012, Course Hero bought an in-person tutoring business).Ĭourse Hero’s change of heart with venture capital boils down to the company meeting new scale demands. Grauer tells TechCrunch that the capital will be used for operations, product innovation and feature development. Now, after going another nearly six years without raising venture capital, Course Hero has closed two rounds in this year alone.
COURSE HERO REDDIT SERIES
After launching, the startup waited eight years to raise a $15 million Series A. Other edtech companies have also recently added on more capital to their balance sheets to meet remote learning demand amid the coronavirus pandemic.īut in Course Hero’s case, the new capital comes as a stark contrast to how the business functioned before 2020. funding deals of 2020, and brings Course Hero’s valuation to $1.1 billion.įrom a high level, the new raise is not surprising. Its $80 million Series B round is one of the largest U.S. The round is now totaling $80 million, bringing Course Hero’s total known venture capital to date to $95 million. Today, Course Hero tells TechCrunch that it has raised a new tranche of capital in a Series B extension round of $70 million.
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