Launched in 2006, education startup Course Hero started its life away from the attention of venture capital. After launching, the company waited eight years to raise a $15 million Series A. Then, after going another nearly six years without raising venture capital, Course Hero closed two financings in 2020.
Yesterday, the edtech company announced yet another tranche of capital: a $380 million Series C at a $3.6 billion valuation. The financing, led by Wellington Management with participation from new investors Sequoia Capital Global Equities, OMERS Growth Equity and D1 Capital Partners, as well as existing investors, brings a 227.3% increase to Course Hero’s valuation in a little over a year. The business has been cash flow positive and profitable on an adjusted EBITDA basis for over 5 years, it claims.
The raise comes as a stark contrast to CEO and co-founder Andrew Grauer’s comments in 2020, when he spoke on the “risk