- Stride Funding (formerly AlmaPact) announced it raised a seed equity funding round led by GSV Ventures along with Slow Ventures, Sinai Ventures, and Strada Education as co-investors
Stride Funding (formerly AlmaPact) announced it has raised a seed equity round of funding led by GSV Ventures along with Slow Ventures, Sinai Ventures, and Strada Education as co-investors.
“Human capital is the most valuable asset in our economy. Graduate school is a powerful lever for career and economic mobility, but too many students are deterred by debt from making investments in their futures. We fund students as if they are startups,” said Tess Michaels, Stride founder and CEO. “The recent venture funding demonstrates the confidence that investors have in our mission – to help students fulfill their full potential while creating a compelling new asset class for investors.”
The College Board has reported that graduate students represent about 40% of the total student loan debt, which totals an estimated $37.6 billion in debt.
And Stride will use the funding to accelerate the development of the first widely distributed Income Share Agreements (“ISA”) for graduate school — which enables graduates to share a percentage of their future income in exchange for tuition funding.
ISAs better align the cost and value of education since future payments automatically adjust to students’ income. And by definition, ISA holders can never owe more than they can afford.
“Tess is a passionate and talented entrepreneur with experiences at world-class financial and educational institutions, and we are delighted to invest in her company. She has assembled an experienced team, and through financial innovations like Income Share Agreements, Stride will expand access to education, and generate social and economic benefits for its stakeholders. I am very pleased to join the Board of the Company,” added GSV Ventures Founder and Managing Partner Deborah Quazzo.
Stride’s executive team includes professionals with experience at Goldman Sachs, JP Morgan Chase, SoFi, and Morgan Stanley. And Stride’s board of advisors is composed of several serial entrepreneurs and industry leaders.
“The $1.5 trillion US education funding system is ripe for innovations, and Stride is positioned to lead the way,” explained Sam Lessin, the founding partner of Slow Ventures. “Stride examines the past performance and future potential of each student and tailors rates within specific academic programs based on outcomes. The team offers support to students like career guidance, networking, and employer connections to enhance their skills and earnings. Because ISAs tailor payments to individual financial circumstances, students become more resilient to economic uncertainties. This new way of funding higher education will attract more students and new pools of capital.”
