GSV Ventures, co-founded by Deborah Quazzo and Michael Cohn, has raised $ 180 million in its second fund, exclusively focused on supporting edtech startups around the world. The startup now manages $ 277 million in cumulative assets, including its first fund which closed in 2016.
The new fund will allow GSV to invest in 13 core securities, with an average check size of $ 15 million. The company sets aside up to $ 20 million per position for follow-on capital. It will invest in seed, series A and end-of-growth opportunities.
While edtech has certainly been brought to light by the impact of the pandemic on the adoption of distance education, GSV Ventures is a case study of what happens when you invest in a category before you. it is not a generalist. The first fund had three of its largest positions in Coursera, which plans to go public this year; Course Hero, valued at $ 1.1 billion last year; and ClassDojo, which ultimately broke profitability after spending eight years focusing on customer growth rather than monetization.
The company was also an early adopter of Nearpod, which came out for $ 650 million in an all-cash deal in February 2021. Quazzo, who contributed his portfolio of angels to the fund, says it gives the fund. company 10 outings to date.
GSV Ventures started around the same time as other edtech-only funds launched, such as Reach Capital, Learn Capital, and Owl Ventures. These funds all closed new capital as a result of the coronavirus, with $ 165 million, $ 132 million and $ 585 million, respectively.
The biggest change between GSV Ventures’ first fund and Fund II is the opportunity for Quazzo to sow internationally. Fund 1 had only one investment outside the United States, and Fund II already has holdings in Cape Town, Croatia, Jordan, as well as, confirms Quazzo, six inbound investments split between Indonesia and India.
“There are some very important companies being built in these markets with a mission to democratize and improve the delivery of learning at scale to all,” Quazzo told TechCrunch. To date, the GSV Ventures portfolio has 37% founders and 43% people of color.
Although there has been a four-year gap between Fund I and Fund II, GSV’s ability to support edtech startups with an ambitious trajectory has not gone unnoticed. Its third fund, already halfway up, will have its first close in the coming months.