New York-based Noodle, which helps US universities create online and hybrid programmes, has raised $50 million in Series C funding in a round led by BlackRock, with participation from existing investors including Owl Ventures. Barclays acted as the exclusive placement agent.
Noodle stated the funds will be used for helping its university partners by investing in acquisitions and innovation that help their partners keep marketing and student support costs low, and enable them to move beyond degree programmes to compete in the lifelong learning market.
Noodle added that its managed programmes, which have been registering students, on average, for 15 months, will produce $400 million in lifetime revenue for its university partners.
William Abecassis, head of innovation capital at BlackRock, said: “We are excited to be leading this investment, driven by our belief that higher education is undergoing a significant digital transformation, and our confidence in Noodle’s proven team, impressive track record, and compelling mission.”
Alex Pavlovich, head of education technology at Barclays, added: “This Series C financing is a testament to the continued success and growth of the fee-for-service model pioneered by Noodle. Barclays is proud to lead this important transaction.”
Noodle’s chief executive John Katzman commented: “Since its inception, Noodle has been transforming the online education market, first by offering a more attractive revenue model than traditional OPMs and, more recently, by launching a more compelling lifelong learning model for universities and students alike. This fundraise will allow us to further this market disruption as we continue to seek new ways to empower universities to use technology to drive down costs, raise capacity and increase student/faculty engagement.”
Last year, Noodle raised Series B funds totalling more than $30 million, led by San Francisco-based ValueAct Spring Fund, followed by the Lumina Foundation and existing investors. In total, the company has raised more than $125 million of equity capital since its inception.
Date published: 12 October 2021