Accreditation as a Service & Alternative Degrees: The Future of Education

The Rising Demand for New Educational Institutions

Joshua Broggi posits that the current rate of college creation is insufficient, estimating a need for three new institutions to be established daily over the next ten years to satisfy student demand. Consequently, he is developing Woolf, a software platform designed to facilitate the launch and administration of accredited digital colleges.

Streamlining Accreditation for Emerging Institutions

Woolf aims to alleviate the complexities associated with accreditation – the process of verifying that an institution meets defined standards – for newer organizations and programs. This includes everything from technology bootcamps to fully online business schools. The platform intends to function similarly to the University of California (UC) system, uniting a diverse group of institutions under a unified brand, while enabling them to enhance their curricula and award academic credits.

Currently, Woolf is collaborating with seven pilot customers spanning seven different countries.

Securing Seed Funding for Innovation

Broggi’s vision of “accreditation as a service” and the initial positive response have resulted in a $7.5 million seed funding round. This round was spearheaded by Todd Jackson of First Round Capital, with contributions from investors including Connect Ventures’ Sitar Teli, IOVC’s Shuonan Chen, All Access Fund’s Shaan Puri, and Tribe Capital’s Jonathan Hsu.

Reframing the Accreditation Debate

Discussions surrounding accreditation frequently fall into opposing viewpoints: those skeptical of the value of a traditional four-year degree and those who view accreditation as essential for success. However, this is an oversimplification. There is a significant degree of consensus among entrepreneurs regarding the future of education.

Woolf's Position in the Educational Landscape

Woolf University is not positioned as a competitor to the growing number of non-accredited educational alternatives. Instead, Woolf intends to position itself as a future resource for these programs.

The Importance of Educational Optionality

In the current tech climate, “optionality” is a key consideration when it comes to fundraising and capital allocation. This principle extends to the range of educational pathways available to students. Broggi argues that many tech bootcamps and newer colleges will eventually require an accredited option to maintain their ability to attract students.

A Shared Commitment to Diverse Learning Resources

Both proponents and critics of traditional education generally agree on the importance of providing students with a variety of learning resources, recognizing that a one-size-fits-all approach is often ineffective. Strive School, founded by Tobia De Angelis, was created in response to outdated STEM curricula in European industries. Despite the affordability or free tuition offered by many European universities, De Angelis contends that accessibility does not guarantee effectiveness, and he secured funding to demonstrate the need for more options.

The Inevitable Need for Accreditation

It is likely that tech bootcamps can operate successfully without accreditation initially, but eventually, factors such as liability concerns or student demand will necessitate offering an accredited pathway for those seeking a verifiable credential.

Furthermore, providing students with more choices aligns with the arguments made by bootcamp founders who champion alternative financing options for education.

Exploring Alternative Financing Models

Both alternative schools and traditional universities emphasize the importance of affordability. Income-share agreements (ISAs) allow students to defer tuition payments in exchange for a percentage of their future income – a still-debated approach.

Reducing the Financial Burden on Students

Woolf aims to mirror this approach by reducing the financial burden on students.

Automating Administrative Tasks

Broggi estimates that half of the staff at “modern universities” are dedicated to administrative roles, a function his company intends to automate and potentially eliminate.

“Ultimately, the student bears the cost of this administrative overhead,” he stated. “Accreditation is designed to protect students and provide clarity regarding program quality, but students also fund the associated bureaucracy.”

A Cost-Effective Accreditation Solution

While the specific pricing model remains undisclosed, Woolf presents a more viable option for smaller, innovative organizations compared to engaging with traditional regional accrediting bodies.

Therefore, Woolf is focused on lowering the cost of accreditation while maintaining quality assurance, challenging the perception of accreditation as an exclusive privilege.

Raising the Standards for Disruptive Education

Both emerging educational models recognize the need to elevate standards within the disruptive education sector, which has a history of challenges. Approaches to achieving this vary.

Ensuring Transparency and Quality

The primary purpose of accreditation is to ensure students have a clear understanding of what they are committing to. Broggi clarified that he would not comment on specific bootcamps, but emphasized that “all colleges affiliated with Woolf must adhere to the same standards, quality assurance protocols, and demonstrate robust compliance with accreditation requirements.”

“And sometimes, organizational improvements are necessary,” he added. However, not all ventures pursuing accreditation are guaranteed success, as evidenced by Make School’s previous accreditation and subsequent program discontinuation.

Addressing Concerns About Speed and Quality

A potential concern regarding Woolf is its claim to launch accredited digital colleges “in less than a day.” This emphasis on speed may seem at odds with its commitment to providing sophisticated services at a reasonable price, suggesting a need for further refinement.

Alternative Perspectives on Accreditation

Stoa School, which recently secured $1.5 million in seed funding for its part-time MBA alternative, has no plans to pursue accreditation, believing it would hinder their ability to adapt and iterate their curriculum. Raj Kunkolienkar, Stoa’s co-founder, explained that Indian regulations are unlikely to approve a six-month degree program, and the startup is prioritizing brand control and skills development over traditional accreditation.

Navigating the Challenges of Affordability and Optionality

Bootcamps are facing increasing pressure to balance affordability and provide students with options. Flockjay, which aimed to serve a similar demographic, recently reduced its workforce by half and shifted to a B2B sales model. Lambda School has also faced scrutiny regarding its job-placement rates, a metric that Phil Regier of Arizona State University questions as a reliable indicator of success.

“Securing an initial job is valuable, but it’s insufficient without a clear path to graduation,” Regier stated. “There is substantial evidence that lifetime earnings are higher for individuals with some form of college degree.”

The Evolving Landscape of EdTech

A year ago, the discussion centered on how technology could scale remote instruction. Now, with companies like Woolf attracting investment and bootcamps exploring optionality, the focus is shifting towards understanding how technology can elevate the standards of effective education.

The Path Forward: Collaboration and Innovation

True innovation will likely stem from collaboration among edtech companies seeking to redefine the status quo, rather than simply reinforcing existing benefits for the same individuals.