guild education valued at $3.75 billion with newest round

Guild Education Secures $150 Million in Series E Funding

Guild Education, a company focused on connecting employees with employer-funded learning programs, has successfully completed a $150 million Series E funding round. This financial injection was led by a consortium of investors including Bessemer Venture Partners, Cowboy Ventures, D1, Emerson Collective, General Catalyst, GSV, Harrison Metal, ICONIQ, Redpoint, and Salesforce Ventures.

The valuation of the company following this funding event has reached $3.75 billion. These newly acquired funds will be strategically allocated to bolster Guild’s coaching staff and broaden its learning marketplace.

Expansion Plans and Focus on Accessibility

A key component of Guild’s growth strategy involves expanding access to short-term certificate programs. Furthermore, the company intends to significantly increase its engagement with Historically Black Colleges and Universities (HBCUs). This investment arrives during a period of increasing recognition for the importance of lifelong learning within the edtech sector.

However, Guild’s CEO and co-founder, Rachel Carlson, cautioned against viewing lifelong learning as a straightforward solution. She expressed skepticism regarding the cyclical nature of attention towards critical issues within Silicon Valley.

Addressing the Skills Gap and Workforce Challenges

Carlson highlighted a significant challenge: a substantial skills gap within the American workforce. She estimates that approximately 3 million cashiers may face job displacement, alongside 2.5 million women who have left the workforce and 3 million baby boomers retiring prematurely due to insufficient skills.

Considering additional vulnerable groups, such as students from low-income backgrounds or rural areas, Carlson believes the current focus on lifelong learning often fails to address the underlying issues.

“A critical problem requires urgent attention,” she stated, emphasizing the need for a national awareness of the skills deficit.

Guild’s Three-Tiered Approach

Guild Education operates by connecting three key stakeholders: employees, employers, and educational institutions. The platform collaborates with major employers like Walmart, Chipotle, and The Walt Disney Company, alongside affordable universities, bootcamps, and various learning providers.

This model provides students with a diverse marketplace of learning options, empowering them to select the skills most relevant to their future career goals.

For example, Walmart’s Guild landing page promotes the affordability of education for its employees, showcasing the potential impact of the company’s educational benefits on career advancement.

Walmart employees contribute $365 annually towards tuition, equivalent to $1 per day, while Chipotle fully covers tuition costs for its employees.

A Business Model Focused on Employer Partnerships

By facilitating connections between employers and learning providers, Guild generates revenue through a percentage of tuition fees. This approach allows employers to retain talent and offer a valuable employee benefit: access to paid education.

While specific revenue and profitability figures remain undisclosed, Carlson confirmed that Guild’s revenue has more than doubled since the onset of the COVID-19 pandemic in March of last year.

Currently, over 4 million Americans have access to Guild’s services through their employers.

Navigating a Competitive Landscape

The up-skilling market is highly competitive, featuring platforms such as Udemy, Coursera, and Degreed. However, Guild distinguishes itself by focusing on supporting currently employed individuals in maintaining their employability.

As Carlson articulates, Guild’s mission is to transition individuals from their present jobs to opportunities in the future job market.

Despite the intense competition, the co-founder is confident that Guild’s unique approach positions it favorably within the evolving landscape of lifelong learning and employment trends.

“Our platform generates data that provides a comprehensive understanding of the working adult learner, surpassing that of any other organization in the country,” Carlson explained. “We possess a more detailed view of the intersection between education and employment data.”