Hot on the heels of last week’s $220 million acquisition of Deltak.edu by John Wiley & Sons and just a few months after the latest massive raise by 2tor, All Campus is announcing its first round of institutional capital and spin-off from Alloy Education.
All of these deal data points reflect the underlying move of not-for-profit colleges and universities online and prospective online students’ newfound awareness of the distinction between these schools and the various online proprietary schools. Indeed, upwards of 500 traditional schools have now moved online and recent data from EduVentures suggests not-for-profits (private and public) now capture a majority of the online education market, with for-profits’ share declining to less than 40%.
I have written previously on the broader market opportunity on my website and aside from my involvement with All Campus, I have also assisted Orbis Education in their recent raise from LLR Partners. All Campus operates in the same online partnership services space, or what some have termed School as a Service, but with a differentiated model from Deltak.edu, 2tor, Embanet and Academic Partnerships.
Two years ago, All Campus noted that while these legacy players work with perhaps 100 not-for-profit colleges and universities, there are another 400 such schools that have moved online on their own, taking advantage of new open source and SaaS based solutions that have lowered the cost and complexity of online learning. However, while these schools now have solutions for online instruction and scheduling, they still lack the expertise and funding to recruit and enroll meaningful numbers of online students. As All Campus’ founder Joe Diamond observed, “you now have 500 stores open for business, but the challenge remains in getting consumers in the door.”
Joe and his team focus on this end of the student value-chain and as such, their school clients are able to retain nearly twice the level of partnership economics.
All Campus was incubated within Alloy Education, a company with over twenty-five years of expertise in advising over 500 traditional schools around traditional marketing for traditional students. Now as a standalone company, All Campus will continue to focus on online marketing for non-tradition students. And with this funding, they can continue to expand their more targeted and equitable partnership model from its initial base of six not-for-profit clients.
The company raised approximately $6 million from a group of investors led by the New York-based growth equity fund Noson Lawen Partners and including Dr. Michael Markovitz, the founder of Argosy Education (and a panelist at our second Educelerate event!). His unique insights into this dynamic market are informed by a 30 year career as an education entrepreneur. It is also expected that the partners at Noson Lawen will bring their deep experience within the media industry to bear on the All Campus business and financial model.
Indeed, while All Campus has proven its ability to work with institutions that have already moved online on their own, it will be interesting to see if they can work with the several thousand schools that are still navigating their (shrinking) options in terms of LMS and SIS solutions. It will also be interesting to note what happens as the contracts of the legacy players come due and their school partners see the superior economics available through this more targeted offering.
Note Bene: the author has an investment in All Campus.