Instructure builds bridge to $40m

Instructure, an edtech software-as-a-service platform, has raised $40m in a series E round geared towards launching its corporate-focused learning platform Bridge and a future IPO.

Instructure, which counts Oregan State University as one of its foundation partners, has now raised $90m in external fundraising. Current investors OpenView Venture Partners and Epic Ventures were joined by Insight Venture Partners. Utah University’s venturing unit University Venture Fund is an existing backer of Instructure, having taking part in the firms $30m series D in 2013 and its $8m series B in 2011.

The company is best known for its learning management system (LMS) Canvas, launched in 2011. Aside from providing a back office to students at schools and universities – Canvas is used by 18 million students and teachers in 1,200 universities – the platform also hosts massively open online courses (MOOCs). Canvas differentiates itself from other MOOC providers such as Coursera and EdX by allowing any university or institution to upload a MOOC for students and others to access.

Instructure’s biggest competitor in the LMS space has been Blackboard, which it is looking to take on again with its next offering, Bridge. The platform will work in similar fashion to Canvas, but target the corporate world, with a view to improve employee engagement and training. Blackboard, which launched in 1997, also offers enterprise learning.

Josh Coates, CEO at Instructure, said: “This funding allows us to continue to innovate in education while simultaneously expanding to the learning portion of human capital management market. We believe Bridge makes it easier for businesses to improve employee engagement and learning, just as Canvas made it easier for educators to improve teaching and learning.”