Live online education marketplace Outschool raised $75 million in a Series C funding round co-led by Tiger Global Management and Coatue, with the participation of Lightspeed Ventures, Union Square Ventures, and Reach Capital.
The company now reached a valuation of $1.3 billion, after this funding round and the $45 million Series B round last summer. With the new funding, the company plans to dedicate 2% of the stock for an educator fund, which would be available in the event of liquidity or IPO. Outschool plans to continue investing in B2B offering that allows businesses to provide online classes as a company benefit and growing its partnerships with schools and districts for supplemental learning and afterschool programs.
“We hear regularly from parents how a particular Outschool teacher has made a difference in the life of a learner. That is the motivation behind the fund is simply to say thank you for your amazing contribution. We want teachers to share in the overall success of our company and the global learning community that we’re creating together,” said Amir Nathoo, CEO of Outschool.
Outschool marketplace offers small-group classes with an opportunity to explore student’s interests in-depth with interactive classes taught via live video by experienced, independent teachers and organizations.
Classes range from one-time enrichment classes to ongoing social clubs to week-long camps and ongoing courses for learners from 3 to 18 years old. The non-profit arm, Outschool.org, is available for families with a financial need to access classes and camps.
“Outschool is on the forefront of personalized online learning, which we believe will play an increasingly important role in education post-pandemic. As Outschool’s talented team innovates in this new education paradigm through enrichment, supplemental academics and camps, we are excited to partner with them to benefit learners around the world,” said Evan Feinberg, partner at Tiger Global Management in an announcement.
The company has seen rapid growth during the COVID-19 pandemic when bookings went from $6M to over $100M.