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On Friday (21 August), virtual education platform Lambda School announced that it has raised $74m for its online coding and computer science courses. The Series C investment round was led by Gigafund, which has previously backed Elon Musk’s SpaceX. Lambda School’s CEO and co-founder, Austen Allred, said that the funding comes at an urgent time, with the economic impact of the Covid-19 pandemic and a forced “reckoning” in education.
“This new financing will support our mission to unlock student potential, regardless of circumstance, by developing career-oriented educational jobs with computer science degree and reducing the financial risks to pursuing a better career,” he added. The virtual school’s computer science courses run for up to 18 months and cost $30,000. The school is currently running two courses covering data science and full-stack web development.
Lambda School’s unique offering over other coding bootcamps is that it only asks students to pay back tuition after they secure an annual income of $50,000 or more. The company provides some support to students through career coaches and job search trainers who help students source jobs and prepare for interviews.
“Our approach has remained the same since day one: invest in students, align incentives and lower barriers that prevent students from reaching their full earning potential,” Allred said.
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