GSV Ventures Secures $180 Million for Second Edtech Fund

GSV Ventures, established through the collaboration of Deborah Quazzo and Michael Cohn, has successfully raised $180 million for its second investment fund. This fund is specifically dedicated to providing financial support to edtech startups operating globally.

Fund Details and Investment Strategy

Currently, the firm oversees a total of $277 million in assets, encompassing both its newly closed fund and its initial fund from 2016.

The new fund will facilitate investments in 13 key portfolio companies, with an average investment amount of $15 million per company. Furthermore, GSV Ventures will allocate up to $20 million for potential follow-on investments in these ventures.

Investment will be directed towards companies at various stages of development, including seed, Series A, and late-stage growth opportunities.

A History of Successful Edtech Investments

GSV Ventures’ foresight in recognizing the potential of the edtech sector predates the widespread attention it received during the pandemic. The firm’s first fund demonstrated strong performance, featuring significant investments in companies like Coursera, which is preparing for an initial public offering.

Other notable investments from the first fund include Course Hero, valued at $1.1 billion, and ClassDojo, which achieved profitability after prioritizing customer acquisition for eight years.

The firm also identified Nearpod as a promising venture, resulting in a successful exit with a $650 million all-cash acquisition in February 2021. Quazzo notes that this brings the firm’s total number of exits to ten.

Expanding Global Reach

GSV Ventures launched alongside other specialized edtech funds, such as Reach Capital, Learn Capital, and Owl Ventures. These firms have also recently secured new funding, raising $165 million, $132 million, and $585 million, respectively.

A key difference between GSV Ventures’ first and second funds is the increased focus on international markets. While Fund I included only one investment outside the United States, Fund II already has holdings in Capetown, Croatia, and Jordan.

Additionally, Quazzo confirms that six further investments are planned across Indonesia and India.

“Significant businesses are emerging in these regions, dedicated to expanding access to and enhancing the quality of education on a global scale,” Quazzo stated to TechCrunch. The firm’s portfolio currently showcases 37% female founders and 43% representation from people of color.

Future Growth and Third Fund

Despite a four-year interval between Fund I and Fund II, GSV Ventures’ consistent support of ambitious edtech startups has been widely recognized. The firm is currently in the process of raising its third fund, with an anticipated first close within the coming months.

Early Stage Event Information

Early Stage is a leading event designed to provide practical guidance for startup entrepreneurs and investors. Attendees will gain insights directly from successful founders and venture capitalists regarding business development, fundraising, and portfolio management.

The event will cover all critical aspects of building a company, including fundraising strategies, recruitment processes, sales techniques, legal considerations, public relations, marketing, and brand development.

Each session is designed to encourage audience participation, with dedicated time allocated for questions and discussions.