Budapest-based programming school Codecool has closed an investment round of €7 million supported by its new venture capital partner Integral Venture Partners and earlier investors Lead Ventures and PortfoLion Capital Partners.

In total the company has raised €12.5 million to date and that latest round is its third.

Codecool was founded by Hungarian businessmen in 2014 and operates campuses in Hungary, Romania and Poland. It a full-stack IT course with a job guarantee, as well as three to four-month online IT courses.

The company said it plans further expansion and product development, with the programming school opening two new campuses in central Europe this year. Codecool said by 2025 it intends to open more than 10 campuses, teach thousands of graduates a year, and offer dozens of corporate training programmes.

József Boda, Codecool’s chief executive, said: “The investment enables us to continue our European expansion. We’re planning to enter two new markets this year – we consider Austria, Serbia and Bulgaria. Expansion, however, does not only mean increasing the number of our schools. Further developing our corporate re- and upskilling courses are also in our focus. Our experience shows that executives are increasingly open to train or reskill their existing employees, as it is often time-consuming and costly to find new experts with appropriate skills on the labour market.”

Integral Venture Partners’ investment executive Ádám Szalai, added: “Codecool supports a fundamental, long-term macro and labour market trend – the promotion of digitalisation and the increasing significance of programming skills – through a unique and flexible business model. This model puts equal emphasis on the training of high-quality coders, and the fast and effective satisfaction of corporate demand for human resources. These, together with the regional coverage and the expansion plans make this company especially attractive for Integral Group and its investors, as education is one of our key focus fields.”

Ábel Galácz, chief executive of Lead Ventures, commented: “In offering 12-month long intensive and practice-oriented programming courses, Codecool has currently no competitor in the Hungarian market. The method is proven – 98% of the more than 1,000 Codecool graduates have already landed an IT job.”

Zsolt Mihály, investment manager of PortfoLion Capital Partners, said: “As the very first institutional investors of Codecool, we have known the team for years now, and our trust in them has always been very strong. They were able to react quickly and effectively during the pandemic, which is the essential characteristic of a successful scale-up. And they are a key player in ed tech, which is one of the hottest sectors today. Impacted by the recession, a lot of people feel the need, or are even actually forced in some unfortunate cases to start new careers and further develop their skills. Consequently, we strongly believe in further growth.”

Financial advice for the funding round was provided by Clairfield International.

Date published: 15 March 2021

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