Venture-backed online course provider Udacity wobbles as more than 50% of students at San Jose State University using its courses fails their courses.

Stanford startup Udacity, one of the big three providers of the much-hyped massive open online courses, has had a setback as San Jose State University suspends the platform’s courses.

The University had entered into collaboration with Udacity in January to offer five science, tech, engineering and maths (STEM) courses at $150 a class to its students. However, failure rate of the courses has ranged from 56 to 76 percent, leading the University to re-evaluate the arrangement.

The problem seems limited…