Vemo Education Raises $7.4 Million in Seed Funding to Tackle College Affordability and Help End the Student Debt Trap
- September 11, 2017
- Posted by: Kerry Schneider
- Category: Income Share Agreements (ISAs), Investors, Vemo, Vemo Partners
From: PR Newswire
By: Vemo Newsroom
VIENNA, Va., Sept. 11, 2017 /PRNewswire/ — Vemo Education, the first company to help postsecondary institutions develop, launch, and implement income share agreements (ISAs), announced today that it has recently closed $7.4 million in seed funding. Led by University Ventures and NextGen Venture Partners, with participation from Route 66 Ventures, Third Kind Venture Capital, Haystack Partners, and Task Force X Capital, the funding will allow Vemo Education to hire for growth, accelerate investment in their technology platform, and expand market development.
With student loan debt exceeding $1.4 trillion, defaults skyrocketing, and loan aversion causing too many Americans to underinvest in their higher education or forego college, policymakers, higher education leaders, and students are increasingly focused on income share agreements, a progressive financing alternative to student loans that reduces risk for students and increases college affordability. Vemo Education’s platform creates a turnkey solution for colleges and universities to offer ISAs as an alternative to loans. In the 2016-2017 academic year, its first, Vemo Education facilitated $23 million of income share agreements, including Purdue University’s “Back a Boiler” program.
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