Course Hero Acquires LitCharts

A Confession and the Evolution of Study Aids

I readily acknowledge a past reliance on study aids: as a student, I was among those who alerted our English teacher to the widespread use of SparkNotes – including my own – as a substitute for actually reading Shakespeare’s “Twelfth Night.” This website, providing chapter-by-chapter summaries, proved invaluable for pre-quiz review, or as a crucial lifeline for those who had delayed engaging with the assigned reading.

Course Hero Acquires LitCharts

Considering this history, it’s logical that SparkNotes, a well-known resource for students, is attracting attention from a leading edtech company. LitCharts, originating as an extension of SparkNotes, has been acquired by Course Hero, a recently established edtech unicorn. The financial details of the transaction remain confidential.

However, Course Hero secured an $80 million Series B funding round in August 2020, and it is reasonable to assume that a portion of these funds facilitated this acquisition.

The Genesis of LitCharts and its Role

Ben Florman and Justin Kestler, the founders of SparkNotes, developed LitCharts to expand upon their initial success. LitCharts offers notes, definitions, and translations for over 2,000 literary works.

Like SparkNotes, LitCharts focuses on simplifying complex literary passages. Andrew Grauer, founder of Course Hero, estimates that approximately 30% of LitCharts’ user base consists of teachers and educators.

Course Hero’s Vision for Integrated Learning

“Our aim is to provide the optimal solution for a particular need, and then, at the appropriate time, confidently recommend another tool or resource that could benefit students,” explained Grauer, outlining Course Hero’s long-term strategy.

This interconnectedness – guiding students between different resources – represents a potential advantage of virtual education, as it creates a detailed record of a student’s learning process, including errors, difficulties, and pauses.

Focus on a Specialized Q&A Platform

Grauer emphasized that the core of Course Hero is the creation of a highly specific question-and-answer platform for students. The platform operates on a subscription model, granting access to a wide range of learning materials, including course-specific content developed by teachers and publishers.

Offering support for subjects where students commonly struggle is a key component of Course Hero’s strategy, with English being a prominent example.

Data-Driven Insights into Student Needs

“We analyze platform data to identify areas where students encounter the most difficulties, require the most assistance, and pose the most questions,” Grauer stated. “These insights are incredibly valuable.”

For the past five to six years, the company has been actively expanding its literature library. The acquisition of LitCharts signifies a substantial investment in this area, enriching it with videos, illustrations, and detailed notes on various texts.

Strategic Acquisitions and Brand Independence

This acquisition marks Course Hero’s second in the last eight months. In October, they acquired Symbolab, an AI-powered calculator designed to help students with complex math problems. This deal strengthened Course Hero’s math offerings, and the current acquisition will enhance its literature resources.

Both acquired brands will continue to operate independently, a decision reflecting Grauer’s belief in empowering entrepreneurs.

Decentralization and Maintaining Brand Identity

“Centralizing everything might seem powerful, creating a uniform appearance, but excessive centralization can actually slow progress and hinder decision-making, as you become overly focused on numerous specific use cases,” he explained.

The two recently acquired startups have both been operating for over a decade, and Grauer believes their established scale and brand recognition are best preserved by allowing them to maintain their individual identities.

Subscriber Growth and Future Projections

Course Hero projects reaching between 2 million and 3 million paid subscribers this year, a significant increase from the 1 million subscribers recorded the previous year.