Class Secures $12.25 Million to Enhance Remote Learning

Class, an edtech company specializing in seamless integration with Zoom, has successfully raised $12.25 million in a new funding round. This investment welcomes Salesforce Ventures, Sound Ventures, and renowned Super Bowl champion Tom Brady as new stakeholders.

Strategic Investment and Company Growth

According to CEO and founder Michael Chasen, the investment initiative was sparked by direct outreach from Marc Benioff, CEO of Salesforce. Salesforce Ventures established a $100 million Impact Fund in October 2020, shortly after Class’s initial launch, specifically to support edtech companies and cloud-based businesses focused on positive impact.

Regarding Tom Brady’s involvement in the edtech sector, Chasen explained that the athlete has a history of technology investments and, being a father of three, is deeply committed to advancing education.

Shared Parental Perspective

Chasen further elaborated, “Both Tom Brady and I are fathers to three children, and like all parents, we recognize the value of incorporating effective teaching and learning tools within the Zoom platform.”

Funding History and Future Plans

To date, Class has accumulated $58 million in funding within a year. This includes a $30 million Series A round in February 2021 and a $16 million seed round in September 2020. The current raise, being smaller than the Series A, suggests a strategic focus on attracting key investors rather than solely addressing financial needs.

The newly acquired funds will be allocated to expanding Class’s reach to K-12 schools and higher education institutions globally. The software recently became available on Mac, and is preparing to exit beta on Windows, iPhone, Android, and Chromebook within the coming weeks, as stated by Chasen.

This broader public launch will facilitate the onboarding of the approximately 7,500 schools that have already expressed interest in adopting Class.

Addressing Post-Pandemic Demand

A significant challenge for Class, and similar e-learning startups, lies in demonstrating sustained utility beyond the pandemic. Despite the historically slow adoption rate of software within institutions due to bureaucratic processes, Chasen reports that both higher education and K-12 sectors are actively budgeting for these types of tools.

Class’s pricing structure varies from $10,000 to $65,000 annually, contingent upon the student population size.

Customer Base and Market Position

“We haven’t encountered any budgetary constraints in any school,” Chasen noted in February. “Higher education was already moving towards online learning and is now progressing to the next phase, while K-12 is taking its initial steps.” Currently, Class serves over 125 paying clients, evenly distributed between K-12 and higher education, with 10% utilizing the platform for corporate training.

Competitive Landscape

Class is not alone in its efforts to redefine the Zoom-based learning experience. Several companies are targeting the same market of students and educators seeking alternatives to standard video conferencing, which often present a basic gallery view and chat function. Notable competitors include Engageli, Top Hat, and InSpace.

The Future of Digital Learning

Each of these startups is pursuing a unique approach, but all must address a fundamental question: Can digital learning become a preferred method of instruction and knowledge retention, rather than simply a temporary substitute, once the pandemic subsides?

The recent funding news indicates a strong belief in Class’s potential to answer this question affirmatively. The company has rapidly expanded its team from two to over 150 employees and contractors in just nine months.