GSV Ventures co-founded by Deborah Quazzo and Michael Cohn, has raised $180 million in its second fund, specifically focused on scaling edtech startups globally. Presently, the enterprise manages $277 million in cumulative assets, including its closed debut fund in 2016.
The newly secured fund will support GSV to invest in 13 core holdings, with an average check size of $15 million. The organization reserves nearly $20 million per position for follow-on-capital. It plans to invest in seed, Series A and then late growth-stage opportunities.
Edtech undoubtedly gained more attention when learning changed from in-person to online due to the pandemic lockdowns. However, GSV Ventures is a perfect example of underground work and investment before people know it. The first fund had three of its largest positions in Coursera when it is planning to go public this year. Also, Course Hero, valued at $1.1 billion last year and ClassDojo, eventually hit profitability after eight years of focusing on client growth rather than monetization.
GSV Ventures believed initially in Nearpod, but its exit for $650 million in an all-cash deal in February 2021. Quazzo, who contributed her angel portfolio into this fund, says the agreement gives the enterprise 10 exits under its belt to date.
The venture capital firm started almost simultaneously with other exclusively-edtech funds launched, including Reach Capital, Learn Capital and Owl Ventures. All these funds have all close new capital in the wake of the viral pandemic, with $165 million, $132 million and $585 million, respectively.
The major change between the GSV Venture’s debut fund and Fund II is the opportunity that Quazzo seeds internationally. With fund 1, there was only an investment in the US, and Fund II has holdings in Capetown, Croatia, Jordan, and Quazzo confirms six incoming investments split between India and Indonesia.
Quazzo said, “There are crucial businesses built in these markets with a mission to democratize and improve the delivery of learning at scale to all people.” Till this moment, GSV Venture’s portfolio has 37% female founders and 43% people of color.
With four-year gap between Fund I and Fund II, the venture’s ability to support edtech startups with an ambitious trajectory has been well noted. GSV Venture’s third fund, which mid-raise, will have its first close in the coming months.
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