MasterClass has successfully raised $236.4 million over six funding rounds, achieving a valuation of over $1 billion. The platform offers a unique opportunity for users to learn from the world's best across various fields.
Keep reading to explore the intricacies of MasterClass's fundraising journey and the investors backing this innovative platform.
What Is MasterClass?
MasterClass, founded in 2015 by David Rogier, is an online education platform based in Los Angeles and San Francisco. The company offers a unique opportunity for users to learn from the world's best across various fields.
With a team of 201-500 employees, MasterClass provides an annual membership that grants unlimited access to over 90 instructors and classes. These classes cover a wide range of subjects, including arts, business, design, sports, and writing.
MasterClass is known for its cinematic visuals and hands-on demonstrations, making learning both engaging and accessible. The platform continues to grow, attracting top investors and expanding its offerings.
How Much Funding Has MasterClass Raised?
- Series A Funding Round
- Amount Raised: $4.5 million
- Lead Investors: Javelin Venture Partners
- Motivation Behind the Round: Initial funding to develop the platform and attract high-profile instructors to create the first set of classes.
- Series B Funding Round
- Amount Raised: $15 million
- Date: February 23, 2016
- Lead Investors: New Enterprise Associates
- Motivation Behind the Round: To expand the number of classes offered, aiming to film between 10 and 15 more classes in 2016, and to support the company's mission of democratizing access to knowledge by keeping the price point reasonable.
- Series C Funding Round
- Amount Raised: $35 million
- Date: March 28, 2017
- Lead Investors: IVP
- Motivation Behind the Round: To add more classes, hire more employees, and expand into new categories such as business tutorials from world-class entrepreneurs and visionaries.
- Series D Funding Round
- Amount Raised: $80 million
- Date: September 6, 2018
- Lead Investors: IVP
- Motivation Behind the Round: To expand internationally and to bring more celebrities to the platform.
MasterClass has raised a total of $134.5 million and is currently valued at over $1 billion.
Key Investors
- IVP (Institutional Venture Partners)
- Details: IVP is a later-stage venture capital and growth equity firm that has been investing in rapidly growing technology and media companies since 1980. They have a strong track record of backing successful companies.
- Investment Focus Areas: Technology, media, and enterprise software.
- Notable Investments: Twitter, Slack, Snap.
- Javelin Venture Partners
- Details: Javelin Venture Partners is an early-stage venture capital firm that invests in technology companies. They focus on helping startups grow and succeed.
- Investment Focus Areas: Consumer technology, enterprise software, and digital media.
- Notable Investments: Thumbtack, Clutter, MasterClass.
- NEA (New Enterprise Associates)
- Details: NEA is one of the world's largest venture capital firms, investing in technology and healthcare companies at all stages of development. They have a global presence and a diverse portfolio.
- Investment Focus Areas: Technology, healthcare, and consumer sectors.
- Notable Investments: Uber, Coursera, Robinhood.
- Advancit Capital
- Details: Advancit Capital focuses on early-stage investments in media, entertainment, and technology companies. They aim to support innovative startups in these sectors.
- Investment Focus Areas: Media, entertainment, technology.
- Notable Investments: The Athletic, Headspace, MasterClass.
- Atomico
- Details: Atomico is a venture capital firm that invests in technology companies at the growth stage, with a particular focus on Europe. They support ambitious entrepreneurs aiming to build global businesses.
- Investment Focus Areas: Technology, fintech, and mobility.
- Notable Investments: Klarna, Lilium, Supercell.
What's Next for MasterClass?
MasterClass is poised to seize significant opportunities by expanding internationally and adding more celebrity instructors. The new subscription model and mobile app have already driven substantial revenue growth, positioning the company to match industry giants like Udacity and Coursera. As the demand for online education surges, MasterClass's unique approach of leveraging celebrity-driven content sets it apart in the edtech space.
Future fundraising rounds seem likely, given the company's impressive growth trajectory and successful Series D round. However, challenges such as competition from established platforms, maintaining course quality, and scaling operations internationally could pose hurdles. MasterClass must navigate these challenges to sustain its momentum and continue its upward trajectory.
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