Holberton Raises $20M to Transform into EdTech SaaS Company

Holberton Secures $20 Million Series B Funding

Holberton, an educational startup initially established as a coding school in San Francisco, has announced a $20 million Series B funding round. The investment was spearheaded by Redpoint eventures.

This funding round saw participation from existing investors including Daphni, Imaginable Futures, Pearson Ventures, Reach Capital, and Trinity Ventures. It brings the total funding raised by Holberton to $33 million.

Navigating Recent Challenges

The announcement arrives following a challenging 2020 for Holberton, impacted significantly by the disruption of in-person learning due to the pandemic.

Initially, Holberton aimed to provide a comprehensive software development education, comparable to a traditional college experience, without upfront tuition costs. Students agreed to contribute a portion of their future salaries to the school through a deferred tuition agreement, capped at $85,000.

Regulatory Scrutiny and Program Adjustments

In early 2020, California’s Bureau for Private Postsecondary Education (BPPE) ordered Holberton to halt operations. This action stemmed from the introduction of a new, unapproved program.

This program, a nine-month training course combined with a six-month employment period, required students to pay the full $85,000 tuition. Following a review, the BPPE permitted Holberton to continue its other programs.

Furthermore, some students voiced concerns regarding the quality of education received.

Expansion Despite Difficulties

Despite these hurdles, Holberton continued its expansion efforts. New campuses were launched in Mexico and Peru.

Notably, the number of schools within the Holberton network doubled from nine to eighteen during 2020.

Shift in Operational Strategy

On December 17, 2020, Holberton voluntarily relinquished its operating license in California. The preceding day, the company announced the permanent closure of its San Francisco campus, which had been suspended since March due to the pandemic.

Holberton co-founder Sylvain Kalache explained that the school would be better positioned to fulfill its mission by collaborating with local partners who possess a deep understanding of their respective markets.

Evolving into an "OS of Education"

Holberton now positions itself as an “OS of Education,” offering franchised campuses and educational resources.

In January, California’s attorney general dismissed the fraud allegations leveled against the school. Kalache stated that this resolution allows Holberton to refocus on its core mission: providing affordable and accessible education to aspiring software engineers globally.

Investor Confidence and Future Outlook

Investors clearly share this optimistic outlook.

“They’ve proven successful in breaking down barriers of cost and access while delivering a world-class curriculum,” stated Manoel Lemos, managing partner at Redpoint eventures. “With the concept of ‘OS of Education’ as a service, they provide customers with all the tools they need for success.”

Lemos further explained that customers include impact investors, educational institutions, and corporations seeking to enhance training programs.

Collaboration with Universities

Julien Barbier, Holberton founder and CEO, revealed that the company is now partnering with universities. The goal is to integrate hands-on education into traditional academic methodologies.

Barbier emphasized the benefits for all stakeholders: schools, students, and teachers, who can concentrate on instruction rather than project evaluation.

Growth Projections and Expansion Plans

Holberton anticipates a significant increase in student enrollment, projecting 5,000 students this year, compared to 500 in 2019.

The network is expected to expand with new schools in the U.S., Europe, Latin America, and Africa. The company also reports growing demand for its “OS of Education” tools, including auto-grading systems and online programs.

Holberton Tulsa recently announced plans to double the size of its physical campus.

Focus on SaaS and Educational Tools

“Raising funds is helping us support and accelerate our vision of creating this ‘OS of education,’” Barbier explained. “Many educational entities need help and tools to better support their students and their staff.”

He added that the company is now operating as a SaaS provider, offering its tools and content to businesses, universities, and nonprofits for scalable education and training programs.