With the proliferation of online learning platforms and coding bootcamps, it’s increasingly apparent that individuals require improved resources to effectively navigate this expanding educational landscape.

Career Karma, established in 2018 by Ruben Harris, Artur Meyster, and Timur Meyster, aims to address this need. The company is adopting a strategic approach within the coding bootcamp sector: rather than developing its own training programs, it focuses on assisting students in identifying the most suitable bootcamps based on their budgetary constraints and professional aspirations.

Simply put, Career Karma doesn’t directly compete with institutions like Lambda School; instead, it functions as a key initial point of contact, directing students to Lambda School and other similar programs.

As remote learning continues, a growing number of students are leaving traditional video conferencing-based schooling in favor of alternative educational options. For instance, General Assembly experienced a 20% increase in enrollment in immersive, career-focused programs during the first half of 2020 compared to the same period in 2019, alongside a 330% rise in live online course participation between Q2 2019 and Q2 2020.

Harris views this trend toward shorter-term credentials as a favorable development for the company, as its client base—coding bootcamps—is benefiting from positive market conditions. Despite initial job losses related to COVID-19, Lambda School secured $74 million in funding. Coursera, a prominent provider of massive open online courses, raised $130 million for its short-term credentialing offerings. Additionally, new bootcamps like Henry and Strive School were launched and successfully obtained seed funding.

Career Karma’s future development will center on establishing itself as an essential, daily resource for individuals. This evolution is already underway: over the past year, Career Karma has expanded from a simple matching service to a comprehensive support system.

Once a student is accepted into a coding school, Career Karma organizes coders into small peer mentorship groups, known as Squads, to provide ongoing support throughout the program and during the job search. The company’s intention is not to act as an instructor, but rather to serve as a resource for students, similar to experienced peers offering guidance and direction.

Career Karma is addressing a significant gap in the offerings of many coding bootcamps. A frequent criticism of these programs is that while they assist students in securing their first job, the resulting credential may not be as valuable as a traditional degree for long-term career advancement. To mitigate this, coding bootcamps can invest in alumni networks and community features, such as those offered by Career Karma, to strengthen their overall impact.

Currently, Career Karma generates revenue through a single channel: it charges bootcamps a fee when it successfully enrolls a student in their programs. This fee typically amounts to 10% of the student’s tuition, which can range from $10,000 to $50,000, according to Harris. It is important to note that the bootcamp pays this fee to Career Karma regardless of the student’s chosen financing method, impacting their marketing or admissions budgets.

The startup’s resilience was tested during the initial stages of the pandemic: Given its strong reliance on the success of coding bootcamps, the company faced uncertainty regarding their performance in a challenging economic climate. When unemployment rates were high, coding bootcamps were at risk due to difficulties in placing graduates in jobs.

“This did have an effect on us,” Harris stated. “However, the demand for rapid workforce upskilling has since rebounded,” driven by the nature of venture-backed companies. Career Karma’s clients have successfully placed coders in positions at companies such as Stitch Fix, Tesla, and Gemini.

Despite having only one revenue stream, Career Karma has been profitable for the last five months and has experienced 20% monthly revenue growth. While Harris did not disclose specific financial details, he indicated that the company has placed over 3,000 individuals into job-training programs in the past year. Based on these figures, Career Karma’s annual revenue could be between $3 million and $15 million.

“Our ability to generate additional revenue will increase once we establish a platform where individuals consistently receive career guidance to further their professional development, regardless of the skills they wish to acquire,” he explained.

Today marks the beginning of Career Karma’s next phase of expansion. The company announced that it has secured $10 million in Series A funding, led by Initialized Capital.

Kim-Mai Cutler of Initialized Capital, formerly with TechCrunch, emphasized that she views Career Karma as more than just a bootcamp-focused company.

“It’s become increasingly clear that individuals will require ongoing education to adapt and acquire new skills throughout their careers, and the traditional education system has not adequately addressed this need,” she said. Garry Tan of Initialized Capital previously mentored Harris on applying to Y Combinator, making the collaboration for the Series A round a natural fit.

Additional investors in this funding round include Jack Altman of Lattice, Jewel Burks of Collab Capital, and Amira Yahyaoui of Moz.

“We are now positioned to expand beyond simply matching individuals with bootcamps, and to also connect them with trade schools, colleges, and universities, ultimately building a community that transcends a mere matching platform,” Harris shared with TechCrunch.