2U has filed a $100 million IPO

Posted Feb 23, 2014

2U is a company that sells software to universities for hosting online classes. 2U has filed for an IPO, but has not yet disclosed the share price details. 2U is looking to raise $100 million from the IPO.

2U does not offer online degrees. The company sells the technology, which is a cloud service that lets universities offer online classes and degrees.

One of the reasons why 2U is doing very well is because university contracts are massive. 2U offers agreements that last around 10 to 15 years. According to BusinessInsider, 2U does not have that many customers yet. The company lists around 8 universities that use their platform for offering semester classes such as Northwestern University and University of Notre Dame. There are another nine schools that offer full online graduate degrees like USC and Berkeley.

2U raised around $100 million in venture funding since being founded in 2008. The company now only has around $7 million in cash in the bank as of December 2013.

2U reported their revenues for the last three years: $29.7 million in 2011, $55.9 million in 2012, and $83.1 million in 2013. The company saw net losses of $24.9 million (2011), $23.1 million (2012), and $28 million (2013). Adjusted EBITDA was $22.5 million (2011), $18.8 million (2012), and $21.2 million (2013).