Noodle, a New York-based EdTech startup that creates online and agile programs that elevate campus-wide teaching and technology, recently announced that it has raised $50 million in Series C funding.
The round was led by funds and accounts managed by BlackRock, and joined by several existing investors including Owl Ventures. Barclays acted as the exclusive placement agent.
The latest investment will allow Noodle to continue to activate hyper-growth for its university partners by investing in acquisitions and innovation that help them keep marketing and student support costs low, and enabling them to move beyond degree programs to compete in the lifelong learning market, according to a press statement.
Founded in 2014 by John Katzman, Noodle's online and hybrid programs enhance student-faculty engagement, raise capacity and resilience, lower operational costs, and leverage opportunities for collaboration between institutions. Noodle's network of universities, higher education leaders, providers, and students accelerate innovation and efficiency in learning design, marketing, recruitment, technology, student and faculty support, and clinical placement.
Speaking about the company and the latest funding, CEO of Noodle John Katzman said,
"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."
Noodle claimed that since January 2019, it has launched as many online programs with elite schools and universities as have all of its competitors combined. So far in 2021, it has signed 66% of all degree partnerships with domestic top-200 universities.
Responding to the investments, William Abecassis, Head of Innovation Capital, 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, Barclays said this Series C financing is a testament to the continued success and growth of the fee-for-service model pioneered by Noodle.
Noodle had raised Series B funds totaling more than $30 million in 2020 led by San Francisco-based ValueAct Spring Fund, followed by the Lumina Foundation and existing investors. With all prior rounds, the company has now raised over $125 million of equity capital since its inception. The same year, Noodle also acquired key assets of HotChalk, a leading Online Program Manager (OPM), absorbing HotChalk's portfolio of programs, the Creative Communications Associates (CCA) marketing agency, and their acclaimed marketing, enrollment, and technology teams.