SAN FRANCISCO — Education venture studio, Entangled Group, has scored a Series B investment of $15 million led by global investors Hereditas Capital Management and TDM Partners of Hong Kong and leading education investor Rethink Education.
“When it comes to education, the venture capital model is broken,” said Nick Hammerschlag, president of Entangled Group and former member of the investment teams at growth equity firm General Atlantic and Openview Partners. “We’re creating businesses from the ground-up through a collaborative approach, at a moment where the intersection of education and employment is experiencing unprecedented dynamism.”
Entangled Group’s unique model draws upon hands-on experience working with colleges and universities, as well as employers, through its consulting team to identify demand for new and emergent solutions. Earlier this year, the firm launched PathStream in collaboration with Facebook to close skills gaps with untapped talent from community colleges. Entangled-backed ReUp Education helps colleges re-enroll adults with some college credit but no degree. In 2017, the firm exited Entangled-created startup Practice, the video-based skill development platform acquired by Instructure (INST).
“The frustrations of education entrepreneurs and investors represent two sides of the same coin. Investors tend to shy away from the complexity of a market typified by resistance to change and hyper-fragmentation. Entrepreneurs, in turn, struggle to find investors who appreciate both the magnitude of not just the challenge, but opportunity, in education,” said Paul Freedman, CEO of Entangled Group. “We’ve flipped the venture model on its head by creating businesses in response to — and in collaboration with — customers, instead of building solutions in search of problems.”