SAN FRANCISCO — Lambda School has raised $74 million in a Series C funding round led by Gigafund, an Austin-based fund known for its large investments in companies like SpaceX.
Lambda School lets you take classes online and doesn’t charge you until you get a job that pays $50,000 or more. Lambda’s model is built on Income Share Agreements (ISAs) – students pay no tuition upfront, and agree to pay back 17% of their income post-graduation for two years, but only once they’re making $50,000 or more. And if students don’t find a high-paying job after 60 months of deferred payments, they don’t have to pay anything.
In conjunction with the funding, Gigafund co-founder and managing partner, Stephen Oskoui, will join our board. This new financing will support our mission to unlock student potential, regardless of circumstance, by developing career-oriented educational programs and reducing the financial risks to pursuing a better career.
“My co-founder and I built Gigafund on the investment approach we used together at Founders Fund, focusing on ambitious entrepreneurs with a multi-decade vision for their companies,” says Stephen Oskoui, co-founder and managing partner at Gigafund. “We back the world’s most transformative entrepreneurs and look forward to Lambda School leading the revolution in education that we’ve all been waiting for.”