Platzi Raises $62 Million Series B to Reskill Latin American Professionals
Platzi's Approach to Scaling Online Learning
Freddy Vega, CEO of Platzi, proposes that edtech platforms could benefit from adopting strategies seen in the video game industry for scaling their online communities.
Drawing Parallels with Video Games
Consider League of Legends as an example. The game doesn't necessitate players to engage with its content at fixed times or locations. Instead, it facilitates organic connections between individuals who are simultaneously learning and playing. Vega, together with co-founder Christian Van Der Henst, is developing Platzi, an online learning institution focused on Latin American professionals, based on a comparable principle.
A Critique of Traditional Online Learning
Platzi offers a blend of pre-recorded lessons, weekly live sessions, and opportunities for concurrent learning with fellow students. Vega expressed concern that current online learning practices may be creating negative experiences.
“Many individuals are becoming disillusioned with online learning, associating it with platforms like Zoom and cohort-based models that demand synchronous participation,” Vega stated. “The foundation for cohort-based learning is questionable, primarily serving business convenience.”
Securing Series B Funding
This perspective, while potentially controversial given the rising popularity of cohort-based learning, has clearly resonated with investors. Platzi recently announced the successful completion of a $62 million Series B funding round. Prosus led the investment, with contributions from Foundation Capital, Y Combinator, 500 Startups, FJ Labs, FundersClub, and others.
Future Investment Plans
The newly acquired capital will be allocated to enhancing content creation and expanding Platzi’s enterprise solutions. This offering assists other companies in tracking and evaluating employee progress through coursework on the platform.
A key priority is broadening the educational scope to assist more young professionals, including high school students, in securing employment with leading tech companies in Latin America.
Popular Course Offerings
Currently, the most sought-after courses on Platzi are in web development, advertising, and marketing. The platform has also established a school dedicated to soft skills.
Over 60% of students enrolling in technical courses supplement their studies with courses focused on effective communication and collaborative teamwork, though this is not a requirement.
Addressing Latin America's Economic Shift
“Latin America is projected to experience a decline in its primary revenue streams, namely oil and coal, over the next decade,” Vega explained. “Many economies in the region are heavily reliant on natural resources.”
Navigating the Bootcamp Landscape
The demand for skilled professionals in Latin America positions Platzi to address challenges faced by other bootcamps. Lambda School has undergone rebranding and business model adjustments, while Flockjay has implemented staff reductions and transitioned to a B2B SaaS approach.
To date, more than 2.5 million students have utilized Platzi’s resources.
Affordability and Accessibility
Approximately 60% of Platzi’s students currently pay $300 annually for access to the course materials. This amount is equivalent to, or less than, the monthly income of 50% of students after graduation.
While anticipating salary increases, the co-founder aims to further reduce this financial burden. “Students currently need to dedicate one month’s salary to cover the cost of Platzi,” he noted. “My goal is to make it more affordable within the next two years.”