MentorWorks Education Capital, which offers income-share agreements and career development to college students, has raised $1.25 million in a round led by New U Venture Partners.
MentorWorks Education Capital provides ISA financing, which enables college and non-traditional students to complete their education without incurring up-front tuition costs. ISAs are an alternative to loans with students having their tuition paid and then paying a percentage of their future income for a fixed period, up to a maximum cap without incurring interest.
Karthik Krishnan, co-founder and chief executive of MentorWorks, said: “We are pleased to receive this additional funding from NUVP and our other investors. NUVP will be a key partner in supporting our mission to address affordability and accessibility to education for underserved students. We are thankful to NUVP and our other investors for their support and guidance.”
Joel Camacho, vice-president at NUVP, added: “The innovative alternative financing approach that MentorWorks supports as an ISA provider closely aligns with our mission. By investing in MentorWorks’ infrastructure and operations, we can significantly increase the access to post-secondary educational opportunities in a more equitable manner.”
NUVP is a newly-formed venture capital fund anchored by Western Governors University, with the mission of backing companies in the digital learning and future of work sectors.
Date published: 29 September 2020