AAA Masterclass amasses $225m in series F funding

Masterclass amasses $225m in series F funding

Masterclass, the US-headquartered online education provider backed by corporate investors Bloomberg, Endeavor and Novel Group, secured $225m yesterday in a series F round led by investment and financial services group Fidelity.

Investment managers Baillie Gifford and Balyasny Asset Management, investment firm Eldridge and venture capital firms IVP, New Enterprise Associates (NEA), Javelin Venture Partners and Owl Ventures also took part in the round. It valued the company at $2.75bn, sources told CNBC.

Founded in 2015, Masterclass has signed up a host of celebrity partners including Natalie Portman, Samuel L Jackson, Gordon Ramsay, Serena Williams and David Lynch to teach video classes in their specialised subjects that are available through a monthly subscription service.

The cash will go to growing content production along with a planned expansion into new countries, the recruitment of new team members and the launch of an enterprise-focused product.

The round’s valuation is more than triple that of the $800m valuation at which Masterclass last raised money, in a $100m series E round in May 2020 also led by Fidelity and backed by NEA, Owl Ventures, IVP, Atomico, NextEquity Partners and 01 Advisors.

Masterclass had secured $15m in a 2016 series B round featuring Bloomberg Beta, the venture capital firm sponsored by media group Bloomberg; WME Ventures, on behalf of what is now talent and entertainment agency Endeavor; and Novel TMT Ventures, which is backed by telecoms firm Novel Group.

NEA led the 2016 round, which included Advancit Capital, Downey Ventures and various individuals. Evolution Media, IVP, Atomico, Javelin Venture Partners and Harrison Metal are also among the company’s backers, and Novel TMT and Bloomberg Beta returned for its $35m series C in 2017.

David Rogier, founder and chief executive of MasterClass, said: “Over the past several years we have seen a surge in subscriber growth as people are driven to fulfil their desire for lifelong learning outside of the confines of traditional education.

“MasterClass enables that, with our incredible roster of instructors, cinematic production capabilities and singular focus on restoring the joy of learning.

“We are grateful to our investors for their support and this new funding, which will enable us to enhance our global offering for subscribers and capture the meaningful market opportunity we see.”

By Robert Lavine

Robert Lavine is special features editor for Global Venturing.