Parchment raises $10m in follow-up funding to develop digital credentials.

Parchment, a technology company that digitalises the request, delivery and sharing of verified credentials such as school transcripts, diplomas and certifications, has raised $10m in follow-on investment, bringing the company’s total funding to date to $45m. The new funds will be used to accelerate Parchment’s development of new product offerings, resources and tools for its expansive network, with a focus on meeting growing consumer demand to collect and leverage more of their credentials. The company has numerous affiliations with US institutions, such as the National Association for College Admission Counseling (NACAC).

Parchment CEO Matthew Pittinsky (pictured) said there is a steady increase in consumer engagement on the Parchment platform, which speaks to the way people want the sharing of their credentials to be facilitated.

“This influx of capital will help us accelerate our goal of building new services that enhance the user experience,” said Pittinsky, also one of the co-founders of education technology e-learning business Blackboard.

The deal was led by merchant bank The Raine Group, with participation from all of Parchment’s existing institutional investors, including venture capital firm Novak Biddle, Internet Capital Group, Salmon River Capital, GSV Capital, a broker dealer providing advisory services to the education and business services sectors.

The company facilitated the exchange of more than 1.8 million credentials in Q4 2013, and more than five million credentials over the trailing twelve months, boasting an increase of 59% from the prior year. The number of new consumer registrations for services increased by 90% over the same period, jumping from more than 800,000 registrants to nearly 1.6 million.

“We believe in Parchment’s digital credentials platform and the opportunities it offers to enhance people’s lives,” said investor Jeff Sine, founder of the Raine Group. “Parchment’s impressive growth in 2013 indicates that they are resonating with consumers and we are confident that this new round of funding, coupled with Matt’s rich background in education technology, will further expand Parchment’s services to enrich future generations.”

The $10m follow-on funding for Parchment closed in December 2013 and also included participation from Salmon River Capital, GSV Capital and ICG Holdings, Inc.