Tom Brady and Salesforce Ventures pour millions into Class, a Zoom-friendly edtech startup
Class, an edtech startup that integrates exclusively with Zoom to make remote teaching more elegant, has raised $12.25 million in new financing. The round brings Salesforce Ventures, Sound Ventures and Super Bowl champion Tom Brady onto its capital table.
CEO and founder Michael Chasen said that Marc Benioff, the CEO of Salesforce, approached the company about investing in Class. Salesforce Ventures launched a $100 million Impact Fund in October 2020, a month after Class launched, to back edtech companies and cloud enterprises businesses with an impact lens.
As for Tom Brady entering the edtech world, Chasen said that the famous football player has made tech investments in the past and, as the father of three is passionate about helping people through education."
Tom Brady and I are both fathers to three kids and like all parents, we get the need to add teaching and learning tools to Zoom," Chasen added.
Class has now raised $58 million in less than a year, with a $30 million Series A in February 2021 and a $16 million seed round in September 2020. Today's raise is less than its Series A round, which signals it was likely more done strategically to bring on investors than out of necessity.
The money will be used to help roll out Class to K-12 and higher-ed institutions across the world. The startup's software publicly launched on the Mac a few months ago, and will exit beta for Windows, iPhone, Android and Chromebook in the next few weeks, Chasen said. The larger public launch will help scale the some 7,500 schools that have shown interest in adopting Class.
The big hurdle for Class, and any startup selling e-learning solutions to institutions, is post-pandemic utility. While institutions have traditionally been slow to adopt software due to red tape, Chasen says that both of Class' customers, higher ed and K-12, are actively allocating budget for these tools. The price for Class ranges between $10,000 to $65,000 annually, depending on the number of students in the classes.
Class adds $30 million to its balance sheet for a Zoom-friendly edtech solution
We have not run into a budgeting problem in a single school," Chasen said in February. Higher ed has already been taking this step towards online learning, and they're now taking the next step, whereas K-12, this is the first step they're taking." So far, Class has more than 125 paying clients with even-split between K-12 and higher ed, and 10% of customers using it for corporate teams.
It's not the only startup that is trying to reinvent Zoom University. A number of companies are trying to serve the same market of students and teachers who are fatigued by current video conferencing solutions which - at best - often look like a gallery view with a chat bar. Three companies that are gaining traction include Engageli, Top Hat and InSpace.
While each startup has its own unique strategy and product, the founders behind them all need to answer the same question: Can they make digital learning a preferred mode of pedagogy and comprehension - and not merely a backup - after the pandemic is over?
As that question continues to get explored, today's news shows that Class isn't having any trouble recruiting people to believe the answer is yes. In just nine months, the company has gone from two to more than 150 employees and contractors.