K-12 Dealmaking: AltSchool Raises $40 Million; Revolution Prep Raises $4 Million
In this week’s dealmaking news, AltSchool, which operates a small network of private schools and is working on a personalized learning platform, has raised $40 million; also, tutoring and test prep platform Revolution Prep raised $4 million.
AltSchool Raises $40 Million: AltSchool has raised $40 million of an $80 million funding round, according to an SEC filing; the news was first reported by Axios.
Last month, the Bay Area ed-tech company, which offers a network of lab schools, said in a statement that five senior leaders in education and technology have joined its executive team “to bring its personalized learning platform to schools nationwide.”
For the past four years, AltSchool’s team of educators, engineers, and researchers has been building and testing the platform in its network of lab schools, the company said, adding that it is “bringing in key public and charter school veterans, including one of California’s most lauded superintendents, to accelerate R&D and begin offering the platform to the broader education community,” the company said in the statement. Devin Vodicka, who as leader of Vista Unified School District has twice been named California’s superintendent of the year, is AltSchool’s new chief impact officer. (Education Week interviewed Vodicka when his move was announced last month.)
In May 2015, AltSchool raised $100 million in a funding round led by Founders Fund and Andreessen Horowitz, with Mark Zuckerberg and Priscilla Chan’s donor-advised fund at Silicon Valley Community Foundation.
Revolution Prep Raises $4 Million: Santa Monica, Calif.-based online tutoring and test prep company Revolution Prep completed a $4 million funding round led by existing investor Kennet Partners, a technology growth equity investor. Several industry veterans participated including Jeffrey Cohen and Scott Kirkpatrick, who will join the board of directors.
“We have been extremely impressed with Revolution Prep’s proven success and innovative approaches in the online education space,” said Javier Rojas, Kennet Partner’s managing director, in a statement. Over the years they’ve challenged the traditional tutoring model and disrupted the market’s heavy hitters. Additional resources will allow future programs to further reimagine how our kids learn and how they think about learning.”
The company plans to use the funding to drive growth in its latest online learning product, Revolution Math, according to a statement. In addition, the funding will also allow Revolution Prep to “advance their mission of developing cutting edge learning tools and creating innovative programs to bring students into the tutoring arena at a younger age, allowing them to build a solid learning foundation and make them stronger overall learners.”
KKR Partners With Girls Who Code: Global investment firm KKR has formed a partnership with Girls Who Code, a nonprofit that encourages middle and high school girls to pursue careers in computer science and close the gender gap in tecchnology, according to a statement.
KKR said it will provide “a significant financial commitment” in addition to leveraging the firm’s global resources and network to further grow the organization, according to the statement. Additionally, KKR portfolio companies First Data and GoDaddy announced they will each sponsor a Summer Immersion Program this coming summer, providing 40 girls with seven weeks of free, immersive instruction in web development and design, robotics, and mobile development.
Strada Education Acquires InsideTrack: Indianapolis-based Strada Education Network, a new higher education nonprofit formerly known as USA Funds, has acquired InsideTrack, a provider of student success coaching, according to a statement. Terms of the deal were not disclosed.
InsideTrack will become a wholly owned Strada Education company, but will continue to operate as an independent entity, the company noted.
- California’s Top Superintendent Leaves for Ed-Tech Startup AltSchool
- Implementation Woes Can Doom Ed-Tech Sales to Districts
- Educators’ TED Talks’-Style Forum Leads Up to ASU+GSV Summit
Be sure to check back on Marketplace K-12 for updates on mergers, acquisitions, fundraising, and other dealmaking.
Must be nice having rich friends and benefactors. What a shame that public schools don’t have access to money like that. What strikes me is that, with all that money, the tuition at AltSchool is still around $27,000 a year/student–well beyond the per-pupil expenditure in public schools and affordable only by the wealthy. Even with vouchers and school choice, these schools are light-years beyond the dream of any low-income or poverty-level family.