Social venture UniversityNow raises $19m from a consortium of backers led by Bertelsmann.
UniversityNow, the parent company of Patten University and New Charter University, has raised $19m in a series C round to fuel its expansion.
Mass media multinational Bertelsmann led the round along with investor First Analysis. The two were joined in participation by existing backers University Ventures, Novak Biddle Venture Partners, Kapor Capital, and Bronze Investments.
In addition to the financing, the deal will see Dalia Das, vice president of education at Bertelsmann, join UniversityNow’s board of directors.
The San Francisco-based company, founded in 2010, is offering distance learning degrees delivered online at a low price through its two universities. It targets potential US students who are unable to afford the rising prices of regular higher education, or who cannot attend a campus due to their personal circumstances.
UniversityNow has raised $40.5m in total. In 2010, it held a series A worth $4.2m. After that, it received a further $17.3m series B in 2012.
Gene Wade, founder and chief executive of UniversityNow, said: “We created UniversityNow in response to the increasing number of students being shut out of college due to the exorbitant cost of tuition and the inflexibility of the traditional delivery models. With our rapidly growing student enrolment, we are excited to be on the frontline of transforming what it means to earn a college degree online.”
