What is 2U?
2U operates as a comprehensive online education platform, serving both the United States and international markets. The company's operations are divided into two primary segments: Degree Programs and Alternative Credentials. The Degree Program segment partners with nonprofit colleges and universities to facilitate the online delivery of undergraduate and graduate degree programs, targeting students pursuing higher education. The Alternative Credential segment focuses on shorter, more accessible offerings, including online open courses, executive education, technical boot camps, and micro-credential programs, aimed at individuals seeking to reskill or upskill for career advancement or personal development. 2U provides the underlying technology and services, including the edX.org marketplace, which offers a diverse catalog of online learning opportunities.
How much funding has 2U raised?
2U has raised a total of $796M across 8 funding rounds:
Angel/Seed
$2.3M
Series A
$10M
Series B
$20M
Series C
$32.5M
Series D
$31M
Stock Offering
$119.3M
Stock Offering
$331M
Debt
$250M
Angel/Seed (2009): $2.3M, investors not publicly disclosed
Series A (2009): $10M led by City Light Capital, Redpoint Ventures, and Novak Biddle Venture Partners
Series B (2010): $20M supported by Redpoint, Highland Capital Partners, City Light Capital, and Novak Biddle
Series C (2011): $32.5M featuring City Light Capital, Bessemer Venture Partners, Novak Biddle, Highland Capital, and Redpoint
Series D (2012): $31M backed by Redpoint Ventures, Bessemer Venture Partners, Tondern Capital, Highland Capital, City Light Capital, and Novak Biddle Venture Partners
Stock Issuance/Offering (2014): $119.3M, investors not publicly disclosed
Stock Issuance/Offering (2018): $331M, investors not publicly disclosed
Debt (2019): $250M supported by Owl Rock Capital
Key Investors in 2U
Redpoint Ventures
Redpoint Ventures, founded in 1999, is a venture capital firm that actively invests in early growth-stage companies, providing crucial backing for innovative startups.
Bessemer Venture Partners
Bessemer Venture Partners, established in 1911, is a prominent venture capital firm with a global presence, known for its long-standing investment history in technology and growth companies.
City Light Capital
City Light Capital is a venture capital firm that champions investments in early-stage companies, emphasizing not only financial returns but also positive societal contributions, particularly in education and technology.
What's next for 2U?
The recent major strategic investment in 2U signals a pivotal moment for the company, likely indicating a phase of accelerated scaling and market penetration. Given its enterprise-level funding context, 2U is poised to enhance its technological infrastructure, expand its course catalog, and potentially pursue strategic acquisitions to broaden its reach in the competitive ed-tech landscape. The focus on both degree programs and alternative credentials positions the company to capitalize on evolving educational needs, from traditional higher education to lifelong learning and workforce development.
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