Entity Academy Secures $100M to Empower Women in Tech

Addressing the Gender Gap in Tech Through Specialized Education

Despite recent advancements, a significant disparity persists within the technology sector concerning the representation of women in the workforce, equitable compensation, and inclusive product development. Entity Academy, an edtech startup dedicated to empowering women with skills in fields like data science and software development, has secured $100 million in funding to expand its impact and bridge this gap.

Financing Student Access and Growth

This new capital will primarily be allocated to assist students with their tuition costs, which average $15,000. The funding originates from Leif, a company specializing in financing solutions for edtech platforms, enabling them to offer income share agreements (ISAs) to students.

ISAs allow students to defer tuition payments until they secure employment, mitigating the financial burden of education. This innovative approach aligns with Entity Academy’s commitment to accessibility.

A Self-Funded Success Story

Jennifer Schwab, founder and CEO of Entity, successfully established the business from 2016 with minimal external investment. She views this recent financing as a stepping stone towards a more conventional, venture capital-backed equity round.

Curriculum and Course Structure

Entity Academy doesn’t independently create its educational content. Instead, it curates online courses in data science, software development, fintech engineering, and technology sales.

These “bootcamp”-style programs, ranging from 24 to 33 weeks, are sourced from providers like Springboard, Lambda School, and Columbia University. University courses are presented as institutional offerings, while others are customized by Entity to meet student needs.

Leveraging Data for Strategic Improvement

Beyond curriculum, Entity Academy strategically utilizes data collected from various sources – student feedback, performance outcomes, and engagement metrics – to refine its programs and business strategies. This data-driven approach is central to its operations.

Expanding Reach Through Social Media

The company’s “content arm,” Entity Mag, has gained considerable traction on social media, amassing over 1.1 million followers across Instagram and Facebook. This platform serves as a vital channel for engagement and attracting prospective students.

A Holistic Approach to Learning

Entity Academy’s offerings extend beyond coursework to include targeted mentoring from industry professionals and comprehensive career coaching, supporting students throughout their journey to employment.

Targeting Specific Demographics and Challenges

Identifying Key Student Profiles

Schwab identifies two primary student demographics: women new to tech (aged 19-23) and those seeking career transitions or advancements (aged 30-39). Both groups seek to acquire the technical skills necessary for success in the tech industry.

Many students come from non-technical academic backgrounds, lacking the support within their current workplaces to facilitate retraining for technical roles.

Addressing Diversity and Inclusion

Entity Academy actively serves a diverse student body, with 55% of the 19-23 age group and 62% of the 30-39 age group identifying as women of color. The company is dedicated to providing tailored support to address the unique challenges faced by these individuals.

This commitment is reflected in its “wraparound” strategy, designed to empower women from all backgrounds to break into tech careers.

Building Skills from the Ground Up

Schwab emphasizes that many students lack foundational STEM knowledge, requiring Entity Academy to build skill sets from the very beginning. This comprehensive approach ensures students are well-prepared for the demands of the tech industry.

Growth, Evolution, and Future Prospects

Scaling Financial Support

With approximately 80% of students utilizing financing options, Entity Academy’s focus on expanding access to funding is paramount.

Historical Growth and Current Trajectory

Since its inception in 2016, around 400 students, predominantly women, have completed the program. Originally a six-week, in-person course costing $5,000, it has evolved into virtual programs lasting up to eight months.

Currently, 300 students are enrolled, with a projected 1,500 students anticipated next year.

Adapting to the E-Learning Landscape

Entity Academy’s growth coincides with broader trends in edtech and the “future of work.” The COVID-19 pandemic accelerated the adoption of e-learning, creating unprecedented demand for remote education solutions.

This shift also prompted many individuals to reassess their career paths, with online education providing a viable pathway for change.

From In-Person to Virtual: A Transformative Journey

Founded in Los Angeles by Schwab, the company initially focused on addressing the lack of female mentorship in the tech industry. This evolved into a comprehensive approach encompassing education and job placement.

The original brick-and-mortar learning center, housed in a former men’s club, achieved impressive completion and job placement rates. However, the pandemic necessitated a transition to a fully virtual model, headquartered in Las Vegas.

Addressing Completion Rates and Mentorship

While the virtual model has facilitated scalability, it has also resulted in a slight decline in completion rates, which Schwab has identified as a key area for improvement.

The mentorship program has also evolved, transitioning from a volunteer-based system to a paid model with professional moderators to ensure quality and engagement.

Focusing on Job Placement

While Entity Academy doesn’t guarantee job placement, it recognizes the importance of this aspect and is actively working to enhance its career services. The company acknowledges the growing demand for targeted programs supporting women in the job market.

The company’s website includes a disclaimer stating that Entity Academy complements, but does not replace, traditional education.