Udacity provides online courses and popularized the concept of "Nanodegrees" in tech subjects such as AI, programming, autonomous driving and cloud computing. After early struggles to find a profitable model, the company pivoted toward enterprise and government upskilling and says that shift has pushed it toward profitability and cash‑flow positivity. Udacity reports Q3 bookings up 120% year‑over‑year and average run rates up 260% in H1 2020, and expects enterprise and government customers to account for about 80% of its business. Customers include five of the world’s top seven aerospace companies, three of the Big Four professional services firms, the world’s leading pharmaceutical company, Egypt’s IT Industry Development Agency, and three of the four branches of the U.S. Department of Defense. The company still offers direct-to-consumer courses, has pledged 100,000 free programming classes as part of the Pledge to America’s Workers, and plans to build out a sales team to pursue enterprise deals. Udacity was founded nearly a decade ago by three robotics specialists including Sebastian Thrun and its CEO Gabe Dalporto joined in 2019. Udacity offers career-focused online certificate programs, most prominently its Nanodegree credentials. It develops course content in partnership with technology companies including Google, Facebook and Amazon to prepare students for technology-sector roles. The company said it will use new funding to invest in expansion and the internationalization of its education business. In the financing reported, Udacity raised a significant growth round that establishes a new valuation benchmark. The round gives the company a post-money valuation of $1.0 billion, reflecting market confidence in its product and growth plans. Udacity is a MOOC provider that has shifted toward industry-built, vocational training through its nanodegree programs. It launched a nanodegree in partnership with AT&T and is a founding member of the Open Education Alliance, which promotes industry-recognized skill credentials. The company charges roughly $200 per month for nanodegree programs, with typical certification timelines of six months to a year. Udacity reports nearly three million enrollments from 119 countries and says its typical student is a 24–34-year-old who is under-employed. The firm plans to roll out more nanodegree programs worldwide with about 20 partners slated to offer courses. To support that expansion it has just raised new capital to scale its industry-focused curriculum and global reach. Udacity offers free university‑level courses through a platform that includes a learning management system, a built‑in programming interface for coding challenges, and a social discussion forum. Its classes emphasize active problem‑solving rather than lectures and are modeled like a game. At the time of the article it offered 15 classes, had over 753,000 students signed up, and had placed 20 graduates into full‑time positions. Udacity monetizes optional certified exams and earns referral fees from job placements. The company is partnering with technology firms (including Google, Microsoft, Autodesk, Nvidia, Cadence and Wolfram Alpha) to provide course material and instructors. With new funding it plans to build its technology platform—adding mobile applications and adaptive learning—and to scale classes and industry graduate referral programs. It is also experimenting with partially physical/partially virtual classes for subjects that require lab work.

Total raised

$230M

Funding rounds

4

Latest round

Debt Financing

Latest activity

Nov 2020