Disrupting the Traditional Education Model: Campus Raises $55 Million in Venture Funding
Tade Oyerinde, the founder of Campus, a fully accredited online community college, faced numerous challenges when he first sought funding for his startup. Unlike for-profit education companies like Coursera and Udacity, which had received backing from venture capitalists (VCs) in the past, Oyerinde was attempting to gain support for a more traditional two-year college. Moreover, he was seeking funding during a time when higher education was grappling with declining enrollment and rising tuition costs.
Despite these obstacles, Oyerinde believed it made sense to approach VCs for funding. One reason was that Campus ran on CampusWire, an online learning software that Oyerinde had developed prior to launching the college. This software-enabled approach made the college more lean and efficient compared to traditional institutions. Furthermore, Oyerinde saw his venture as a disruptive force in a legacy industry, which he believed would resonate with VCs looking for high-risk, high-reward opportunities.
However, securing funding was not easy. Initially, Oyerinde made the mistake of trying to pitch his startup to as many investors as possible. It was only when he shifted his approach and targeted investors with an interest or experience in the community college space that he began to see progress in his fundraising efforts.
Some of Campus’s first investors were Sam Altman, the founder of OpenAI, and Jason Citron, the founder of Discord. Both Altman and Citron had spent time at community colleges and understood the need for innovation in this sector. Oyerinde connected with Citron through Charles Hudson of Precursor Ventures while building CampusWire, and Citron participated in Campus’s seed round. Citron later introduced Oyerinde to Altman, who also invested in the startup.
One reason why Altman and Citron were drawn to Campus was its ability to adapt its curriculum to meet the rapidly evolving demands of the tech industry. Unlike traditional community colleges, which often struggle to keep pace with technological advancements, Campus’s ties to Silicon Valley and startup culture allowed it to stay on the cutting edge. Oyerinde emphasized that traditional community colleges may not be able to adapt quickly enough to meet the changing landscape, creating a need for a more adaptive and tech-focused learning experience.
Campus has successfully raised over $55 million in venture funding. This includes a $29 million Series A round led by Altman and Citron in May 2023, as well as a recent $23 million Series A extension round led by Founders Fund in April. The startup’s ability to secure funding in an unfavorable climate for the edtech sector is noteworthy. While edtech startups experienced a boom during the pandemic, attracting over $38 billion in investments in 2020 and 2021, funding has significantly declined since then. In 2024, the sector is expected to see its lowest funding total in years. Established edtech players like Byju’s have also faced challenges, with their valuations decreasing.
Despite the hurdles, Oyerinde remains optimistic. Fundraising has become easier for Campus, with the startup now attracting inbound interest. Oyerinde attributes this change to the fact that Campus is truly innovative in a legacy category that has seen little disruption. This kind of disruption aligns with VCs’ appetite for transformative ventures.
Oyerinde envisions Campus as fundamentally changing the way people learn in America and eventually the world. He believes that Silicon Valley remains the go-to place for funding moonshots, and Campus exemplifies this spirit of innovation and ambition. By disrupting the traditional education model and leveraging technology, Campus aims to create a more efficient, accessible, and successful learning experience for students.