Making sense of 3 edtech extension rounds
While venture capitalists are pouring, the surge of interest isn’t coming without pressure.
Edtech companies are searching for new ways to tap into a booming market. As co-founder Andrew Graeur , the goal for his Q&A platform went from reaching a million subscribers to “many millions” as a result of the COVID-19 pandemic.
One way edtech companies are approaching these unprecedented times is by raising extension rounds that are earmarked specifically to bring on strategic partners from around the world. The approach of trading equity for a chance at globalization is neither rare nor cheap, but comes with new weight given the sector’s boom.
Today, closed a $55 million extension round for its Series C, which now totals $130 million. ApplyBoard helps international students search and apply to universities and colleges across the world. It wants users to think of it as a for international students, serving as a college undergrad application.
A spokesperson for the startup — which became a unicorn valued at over — says the round did not change its valuation. Instead, the financing was “less about funding, and more about the partners that we were able to bring on board as a result.”