Everspring, a startup that focuses on helping traditional universities develop online degree programmes, has secured another $10m as it partners with more schools. The venture funding round, which it began last year with $6m, now stands at a total $16m. The round was led by Carrick Capital Partners and also included New York private-equity fund Accretive.
Headquartered in Evanston, a city just north of Chicago, Everspring signed up Kansas University as its first partner. It has created 14 online-only graduate programmes, with the first one of these, a master’s degree in special education, launching this past January. It has since signed up Auburn University (in Alabama), Kent State University (in Ohio) and the College of William and Mary (in Virginia).
The company has seen rapid internal growth, from nine employees to a current 30, over the past twelve months, and plans to grow to 60 by the end of the year. It was launched in late 2011 by Jeff Conlon, the former CEO of Kaplan’s higher education unit, who was convinced the internet was about to upend the business of higher education, shifting growth away from for-profit schools such as Kaplan and back to traditional public colleges and universities.
Everspring fronts the capital and then shares in the revenue. Universities handle the academics, accreditation and financial aid. Meanwhile Everspring provides the technology, enrollment applications and the tools to manage students and develop the course itself. The company is focusing on the 200 largest public US schools that are not yet offering online courses.
Conlon said: “The value proposition of for-profits was convenience. Not-for-profits can come in with a better brand, the price can be lower, and provide a better experience. Millennials who are attending school are used to having content delivered through the internet.”
