“Education is the key to economic mobility. Now more than ever students need outcome-driven funding options to de-risk the cost of education,” said Tess Michaels, Founder and CEO of Stride Funding.
DALLAS (PRWEB) July 16, 2020
Education funding startup, Stride Funding Inc., announced that it has raised additional venture funding and has secured additional investment capital for its Income Share Agreement (ISA) Fund. The new round of venture funding was led by New U Venture Partners, anchored by Western Governors University, while the ISA investment capital was committed by multi-billion dollar impact investors. The company also announced an exclusive strategic partnership with CampusDoor, a leading education finance technology provider.
“Education is the key to economic mobility. Now more than ever students need outcome-driven funding options to de-risk the cost of education,” said Tess Michaels, Founder and CEO of Stride Funding. “The recent venture funding demonstrates the confidence that investors have in our mission—to help students fulfill their potential through aligned incentives across students, schools, and investors.”
Stride was founded in 2018 and began issuing ISAs to students across the higher education landscape in 2019. Despite the volatile macro landscape caused by the current public health crisis, Stride has experienced an uptick in student demand as students seek funding partners committed to their personal success. Michaels added, “Since our founding, Stride has invested in students and provided more than just financial support—offering meaningful educational and career resources to nurture their career journeys.”
Stride will use the new funds to accelerate development of the first widely distributed ISA, allowing students to ‘share’ a percentage of their future income in exchange for education funding over a set number of years—better aligning the cost and value of education. Andre “Dre” Bennin, Managing Partner of New U Venture Partners said, “We are pleased to partner with Stride Funding whose Income Share Agreements expand access to education and generate social and economic benefits for its stakeholders. They embody a mission-driven business with a talented and driven team.”
The announcement also marks a milestone for the ISA landscape, as the exclusive partnership between Stride and CampusDoor underscores their collective commitment to creating scalable, outcome-based funding options for students, at a time when traditional lenders are reducing their footprint. CampusDoor is a pioneer in student loan originations and views this partnership as a major step forward. CampusDoor CEO Steve Winnie noted, “Stride has been and will continue to be a strong partner for us as we collectively shape the ISA space. We are excited to partner with them to offer students the best funding experience driven by a student-first approach.”
Michaels echoed the excitement. “We have partnered with CampusDoor to enhance and streamline the student application process, while ensuring the rigor required to originate ISAs in a transparent and compliant manner. CampusDoor is the best-in-class and we look forward to growing the ISA space together.”
Stride Funding Inc. is a mission-driven company that helps students hit their stride with flexible educational funding. Unlike loans that lock students into rigid repayment structures, Stride offers affordable repayments based on income. Stride’s executive team bring experience from SoFi, Goldman Sachs, JP Morgan Chase, Wells Fargo, and IBM. GSV Ventures, Slow Ventures, Sinai Ventures, and Strada Education participated in its last funding round in September 2019.
Learn more at https://www.stridefunding.com
About New U Venture Partners (NUVP)
NUVP is a venture fund, anchored by Western Governors University (WGU), formed to catalyze a global initiative to develop the innovation that will redefine a post-secondary education that supports the future of work, improves quality, expands access, and optimizes outcomes for the next century. WGU’s mission is to improve quality in education and expand access to educational opportunities for all individuals.
Learn more at https://www.newuventures.com
CampusDoor provides innovative student loan solutions, systems, and processing to lenders enabling them to help their customers pay for college and refinance existing education debt. CampusDoor was founded in 1995 to deliver loans to students and their families via web-based application systems. The company pioneered the first on-line private student loan application with a live underwriting and response system and has continued to lead the industry in expertise and technology.
Learn more at https://www.campusdoor.com
VP, Business Development, Stride Funding