Degreed Pulls In $42M Series C Round
SAN FRANCISCO, CA, Degreed, a career-long learning platform, raised $42 million in Series C funding.
According to the San Francisco Business Times, fast-growing tech company Degreed raised $42 million to expand its team and try to double the pace of its product development, the company said Tuesday.
San Francisco-based Degreed, founded in 2012, aims to help individual users and large businesses find and track learning, with the goal of providing a universal way to measure and certify people's skills across a broad range of topics.
The Series C round brings Degreed's total funding to $75 million. It declined to share its valuation. The new round was co-led by Owl Ventures and Jump Capital. Founders Circle and returning investors GSV Acceleration Fund and Signal Peak also participated in the round.
The funding comes on the heels of what the company said is major growth, signing 50 new customers in the past six months. Degreed said it has more than 150 enterprise-wide customers now, including names like eBay, Tesla, Airbnb, Intel, Bank of America, Unilever, General Mills, and The Home Depot. Its revenue has grown 100 percent year over year for the last three years, it said, though it would not disclose specific revenue numbers.
The infusion of cash comes amid a leadership switch at the company, too: Degreed co-founder and CEO David Blake will become executive chairman of the board, and Degreed COO Chris McCarthy will become the new CEO. Blake told the Business Times the change will allow him to focus more on Degreed's products while letting McCarthy drive the business growth as the company is looking to double the rate at which it builds products.
To support that, Degreed plans to add around 100 people by the end of the year to its current staff of 150, with many of the additional hires expected to join the San Francisco and Salt Lake City, Utah, offices. Degreed is also looking to expand globally as it signs a growing number of Fortune 1000 customers with staff spanning regions like Canada, Latin America, Australia, Europe, and India.
The idea for Degreed came from Blake seeing a gap in how people talk about their skills. If someone is asked about their education, they typically only answer with where they went to college, he said.
"That is a reflection of the fact that even as a knowledge worker in a knowledge economy you can't tell me what you know right now," he said. "We really believe the market wants to speak the language of skills but can't, and so it is left to speak the language of college degrees."
A growing number of companies are buying into the system because it gives them a way to answer what skills their employees have, what skills they still need, and how to close any skills gaps, Blake said.
"We want all of the ways you can learn and all of the ways you can demonstrate your learning to be reflected on Degreed," he said.
In addition to tracking a user's learning, Degreed can provide its own ranking of people's strength on a skill along eight levels, from beginner to master. To receive certification, users must provide three statements that demonstrate their expertise, describe their experience with a skill, and provide three references with first-hand knowledge of the user's experience with a certain skill. While it is free for individual users to track their learning, it costs $129 for certification in one skill and $399 for "unlimited membership," which lets users receive certification in as many skills as they want over their lifetime.
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