The latest edutech startup to see a cash infusion from eager investors: Schoology, which has raised $6 million in a round led by FirstMark Capital. Founded in 2009, the company–currently clocking in at one million users–peddles a collaborative learning platform available in a free version for teachers and a paid version for school districts. The investment brings their total funding-to-date to $9.3 million. Read More
Guess nobody polled FirstMark Capital for that recent survey about pessimism around the venture capital market for 2012. While their peers report dwindling faith in their ability to raise funds to invest, FirstMark reported yesterday that it had closed an oversubscribed $225 million early-stage fund.
Perhaps that’s why the New York-based venture capital firm opted for a subtle announcement: a blog post that, by the looks of it, has only been picked up by the New York Post and the Dow Jones Wire. Read More
Yesterday Knewton, the Union Square-based online education startup, announced a $33 million Series D round led by Founder’s Fund, the VC firm co-founded by Peter Thiel. That might explain why Betabeat heard Mr. Thiel’s fellow co-founders Ken Howery and Luke Nosek were throwing a pre-game party Friday night in New York.
Existing investors Accel, Bessemer and FirstMark also participated in the round, along with Pearson, an education publisher, putting Knewton’s valuation higher than $150 million, according to TechCrunch. Another New York City-based education startup, 2Tor (get it??), raised $32.5 million earlier this year. But what sets Knewton apart is the adaptive learning algorithm the company developed, which figures out student’s weakness and can be applied to any type of curriculum.
Indeed, after trying its platform out in test prep, Knewton is now being used by all 10,000 incoming freshman at Arizona State for an online math readiness course.
Betabeat talked to COO David Liu about why Knewton isn’t making teachers obsolete, how its adaptive learning algorithm works, why Mr. Thiel would invest in an education startup and why Mr. Liu thinks Knewton is, basically, going to take over the world of personalized education. Read More