Total amount raised
$107 Million
Latest funding date
9/1/2021
Location
Varsity Tutors raised $107 million in private funding before its parent, Nerdy Inc., went public on the NYSE in September 2021 through a SPAC merger. The platform offers personalized learning experiences, connecting students and professionals with expert tutors for a wide range of subjects and test preparation.
What Is Varsity Tutors?
Varsity Tutors, founded in 2007, is a live learning platform that connects students and professionals with personalized instruction. The company has facilitated over 10 million hours of 1-on-1 instruction, offering both in-person and online sessions.
Headquartered in St. Louis, Missouri, with offices including Chicago, Seattle, and Tempe, Varsity Tutors employs between 501-1000 people. The platform provides tutoring across more than 3,000 subjects, including test preparation and on-demand lessons.
Varsity Tutors was founded by Chuck Cohn, who remains chief executive, and has established itself as a leader in educational technology, leveraging AI to enhance personalized learning experiences.
How Much Funding Has Varsity Tutors Raised?
- Series A
- Amount Raised: $7,000,000
- Date: May 2014
- Lead Investors: David Karandish
- Motivation Behind the Round: To expand the platform's reach and enhance its technological capabilities.
- Series B
- Amount Raised: $50,000,000
- Date: November 2015
- Lead Investors: Technology Crossover Ventures, Adam Levine, Stuart Udell
- Motivation Behind the Round: To power a broad mobile strategy, enabling on-demand live video tutoring sessions from anywhere with a wireless connection.
- Series C
- Amount Raised: $50,000,000
- Date: February 2018
- Lead Investors: Learn Capital
- Motivation Behind the Round: To scale operations and further develop AI-driven personalized learning experiences.
- SPAC merger and NYSE listing (Nerdy Inc.)
- Amount Raised: More than USD 575,000,000 in gross proceeds
- Date: September 2021
- Lead Investors: TPG Pace Tech Opportunities Corp.
Total Amount Raised: $107,000,000. This figure covers private funding only and excludes the more than USD 575,000,000 of gross proceeds from the September 2021 SPAC listing.
Valuation: USD 1.7 billion at the September 2021 SPAC merger.
Key Investors
- TPG Pace Tech Opportunities Corp.
- Details: TPG Pace Tech Opportunities Corp. was the special purpose acquisition company sponsored by TPG's Pace platform. It was the counterparty to Nerdy's business combination, which closed on 20 September 2021. The deal took Varsity Tutors' parent public on the NYSE as NRDY.
- Investment Focus Areas: Technology-focused special purpose acquisition vehicles sponsored by TPG
- Notable Investments: Nerdy Inc. (Varsity Tutors)
- Technology Crossover Ventures (TCV)
- Details: TCV is a venture capital firm that invests in technology companies at various stages of growth. Founded in 1995, TCV has a long history of supporting innovative tech firms.
- Investment Focus Areas: Technology, Internet, Software, Fintech, Healthcare IT
- Notable Investments: Facebook, Netflix, Spotify
- Adam Levine
- Details: Adam Levine is the frontman for Maroon 5 and a judge on the television show "The Voice." He has ventured into various business investments, including educational technology.
- Investment Focus Areas: Entertainment, Technology, Education
- Notable Investments: Not specified
- Stuart Udell
- Details: Stuart Udell is an education executive with extensive experience in the sector. He has held leadership roles in several educational organizations.
- Investment Focus Areas: Education, Edtech, Learning Platforms
- Notable Investments: Not specified
- Learn Capital
- Details: Learn Capital is a venture capital firm focused on investing in the global education sector. They aim to support companies that are transforming education through technology.
- Investment Focus Areas: Education, Edtech, Learning Platforms, Online Learning, K-12
- Notable Investments: Coursera, Udemy, AltSchool
- David Karandish
- Details: David Karandish is an entrepreneur and investor with a background in technology and AI. He is the CEO of Capacity, an AI-powered support automation platform.
- Investment Focus Areas: AI, Technology, Education, Support Automation
- Notable Investments: Not specified
What's Next for Varsity Tutors?
Varsity Tutors is poised to capitalize on the growing demand for online education, expanding into non-traditional subjects like cooking and coding. With a robust mobile strategy, the platform aims to offer on-demand live video tutoring, making learning accessible from anywhere. This broadening of services presents a significant growth opportunity, potentially attracting a diverse user base.
Nerdy Inc., the parent of Varsity Tutors, has traded on the NYSE as NRDY since September 2021, when the SPAC merger closed. The success of previous funding rounds indicates strong investor confidence, which could support further expansion and technological advancements. However, the company may face challenges such as maintaining service quality and navigating a competitive market. Adapting to evolving educational needs will be crucial for sustained growth.
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