Nexford University Secures $10.8M Pre-Series A Funding

Addressing Challenges in Higher Education

Globally, the higher education sector is grappling with two significant issues: the rising cost of tuition and the disconnect between academic curricula and employer needs. Financial constraints prevent many individuals from accessing or completing university education across continents, including Africa, Europe, and the United States.

Simultaneously, a substantial gap exists between the theoretical focus of many traditional universities and the practical skills demanded by the modern workforce. Universities often prioritize academic theory over hands-on application.

The Rise of Alternative Credential Providers

In recent years, a growing number of alternative credential providers have emerged, aiming to equip students with the skills necessary for successful employment. Nexford University is a prominent example of this trend.

The platform has recently secured $10.8 million in a pre-Series A funding round, demonstrating investor confidence in its innovative approach.

Funding Details

Global Ventures, a Dubai-based venture capital firm, spearheaded the new investment round. Additional participation came from Future Africa’s education-focused thematic fund, angel investors, and family offices.

Investors from ten different countries – including the U.S., U.K., France, Dubai, Switzerland, Qatar, Nigeria, Egypt, and Saudi Arabia – also contributed to the funding.

To date, Nexford has raised a total of $15.3 million, building upon an initial $4.5 million seed funding round completed two years prior.

Nexford University’s Mission

Founded in 2019 by Fadl Al Tarzi, Nexford University is a technology-driven institution designed to address both affordability and relevance in higher education. It aims to provide accessible, high-quality education to a wider audience.

According to CEO Al Tarzi, the platform offers “the best of both worlds,” combining practical, immediately applicable skills with the flexibility to continue working while studying. The learning experience is structured as a “learning as a service” model.

Flexible Learning Options

Nexford University empowers students to learn at their own pace. Upon acceptance into a degree or course program, students determine the speed at which they progress through the curriculum.

The curriculum is designed to ensure that all learning is directly applicable to students’ current or future jobs.

Program Offerings

Nexford currently offers undergraduate degrees in fields such as business administration, 360° marketing, AI and automation, building a tech startup, business analytics, business in emerging markets, digital transformation, e-commerce, and product management.

Graduate programs include business administration, advanced AI, e-commerce, hyperconnectivity, sustainability, and world business.

Affordable Tuition Structure

Nexford’s tuition model differs significantly from traditional universities, operating on a monthly subscription basis. Accredited degrees range in cost from $3,000 to $4,000, payable in monthly installments.

For example, in Nigeria, an MBA is available for approximately $160 per month, while a bachelor’s degree costs around $80 monthly. Importantly, students who complete their programs faster pay less overall due to the installment structure.

Experiencing Education with Nexford University

Nexford University diverges from conventional academic institutions by eschewing standardized, theoretical assessments. According to Al Tarzi, the institution utilizes a competency-based educational approach, where student proficiency is demonstrated through practical project completion.

For example, an accounting student might be tasked with constructing a Profit and Loss statement, scrutinizing balance sheets, and pinpointing errors for correction. The platform subsequently presents diverse scenarios featuring companies with varying revenue and expense levels. The objective? To perform analysis and derive key ratios to assess profitability and other unit economic factors.

While operating within the edtech sector, Al Tarzi refrains from categorizing Nexford as solely an edtech company. Functioning as a licensed and accredited online university, Nexford incorporates substantial automation throughout its operations and provides students with support from both faculty and career advisors.

Beyond degree conferral, Nexford actively facilitates graduate placement through collaborations with partner employers.

Nigeria faces a significant employment gap, and despite high unemployment rates, finding exceptionally qualified entry-level candidates proves challenging. Consequently, Nexford has established partnerships where employers sponsor employees or prospective employees for upskilling and reskilling initiatives.

Sterling Bank, a Nigerian financial institution, serves as a prime example. Many Nigerian banks routinely hire graduates and subject them to extended training programs. Sterling Bank retains candidates who demonstrate strong performance during these intensive programs, often lasting eight weeks.

Nexford’s collaboration with Sterling Bank involves funding tuition for high school graduates. These students gain part-time placements at Sterling during their first year of study with Nexford. Upon completion of their degree, they receive full-time employment offers from the bank.

“This arrangement reduces Sterling’s training expenses, and our tuition is comparable to the cost of their traditional student training. Furthermore, students begin tuition repayment upon securing employment, creating a mutually beneficial outcome.”

Nexford University currently serves learners in 70 countries, with Nigeria representing its largest market. The university also maintains strategic partnerships with industry leaders such as Microsoft, LinkedIn Learning, and IBM, providing access to tools, courses, and programs designed to enhance the learning experience.

A key benefit of this educational approach is its preparation of individuals for remote employment opportunities. Nexford is actively developing its virtual skills grid, aiming to connect individuals with remote jobs irrespective of their geographical location.

“Sub-Saharan Africa is projected to experience a shortage of approximately 100 million university places by 2026, driven by rapid youth population growth outpacing the expansion of educational infrastructure. Even with accelerated university construction, meeting this demand would be improbable. This shortfall extends to the job market. We anticipate that the Nigerian economy, for instance, will not generate sufficient employment opportunities. Our goal is to empower individuals to secure remote positions globally, eliminating the need for migration.”

Last year witnessed a 300% growth in Nexford’s revenues. The company anticipates tripling its enrollment figures this year, as stated by the CEO.

Nexford prioritizes the design of student curricula based on a thorough analysis of employer requirements. Al Tarzi emphasizes the company’s commitment to a data-driven approach, continually asking, “How can we determine the skills employers worldwide seek and maintain the relevance of our curriculum?”

“We have developed proprietary technology that allows us to analyze job postings and other data sources, utilizing AI to interpret these datasets and construct a curriculum based on these insights. Essentially, we begin with the desired outcome in mind,” he explains.

The company remains dedicated to enhancing its technology. It seeks to refine its skills analysis capabilities and automate more functions to improve the user experience. The recent funding will be allocated to these improvements, as well as regional expansion efforts, particularly in Asia, and continued investment in growth and product development. Specifically, the university plans to launch partner programs with additional employers worldwide to streamline both placement and upskilling/reskilling processes.

Successfully integrating technology with the traditional university model presents a considerable challenge. The former prioritizes efficiency, user-centricity, and product development, while the latter often exhibits rigidity and lags behind rapid innovation. While the edtech sector has experienced growth, many startups attempt to bypass industry constraints by launching applications or MOOCs. Nexford’s approach – operating as a degree-granting, licensed, accredited, and regulated university – is more complex, yet offers substantial potential.

Iyin Aboyeji, General Partner and CEO of Future Africa, recognizes this. This understanding is a key factor in Future Africa’s decision to make Nexford its first investment from its forthcoming fund focused on the future of learning, and fuels his belief that the company will revolutionize higher education in Africa.

“During the pandemic, while numerous Nigerian universities faced closures due to labor disputes, Nexford was already delivering an innovative and affordable online higher education model tailored to a skills-based economy.”

Noor Sweid, General Partner at Global Ventures, views Nexford University as addressing the disparity between talent supply and the demands of the modern digital economy. “We are delighted to collaborate with Fadl and the Nexford team as they work to broaden access to high-quality higher education in emerging markets,” she stated.