Microverse Raises $12.5M for Income Share Agreements in Developing Countries

Microverse Secures $12.5M Series A Funding to Expand Global Coding Education

Microverse, an edtech startup, has successfully obtained new venture capital to further its mission of providing coding education globally. Their innovative model eliminates upfront tuition costs, instead utilizing an income-share agreement that activates upon student employment.

Funding Details and Previous Investment

The company announced to TechCrunch a $12.5 million Series A funding round, spearheaded by Northzone. Additional investors included General Catalyst, All Iron Ventures, and various angel investors. This latest investment brings Microverse’s total funding to nearly $16 million, following earlier seed funding from General Catalyst and Y Combinator.

Pandemic-Driven Growth and Global Reach

The company’s vision has gained significant momentum due to the increased acceptance of remote work within the technology sector. This shift has broadened the geographic scope for tech companies and, consequently, for Microverse. Currently, the program has enrolled English-speaking students from over 188 countries.

Graduate Success and Employment Rates

Since the last funding update, CEO Ariel Camus reports that approximately 300 students have secured positions at prominent tech firms, including Microsoft, VMWare, and Huawei. Microverse boasts an employment rate exceeding 95% for its graduates within six months of completion, addressing a key challenge often faced by income-share agreement schools.

Income-Share Agreement Terms

Microverse’s income-share agreement terms differ from those of competitors like Lambda School, particularly regarding the commencement of repayment. These differences were previously detailed in a prior article.

Program Refinements and Student Selection

Since its inception, Microverse has focused on optimizing its online program to maximize student success within the full-time, 10-month curriculum. This includes shortening lesson segments to ensure students possess sufficient time for commitment.

The startup receives thousands of applications monthly, but maintains a selective admissions process. This careful selection is intended to prevent overextension of resources and ensure program quality.

Microverse anticipates guiding 1,000 students through its program this year.

Future Plans: Corporate Partnerships and Expansion

The company intends to forge closer relationships with technology companies to facilitate job placement for its graduates.

Ariel Camus explained to TechCrunch that launching a partner program is projected to expand the market reach fivefold. He expressed confidence in achieving a scale of 10,000 students annually, given the limited access to higher education for a significant portion of the global population.