“When it comes to education, the venture capital model is broken.”
That’s Nick Hammerschlag talking. He is president of the Entangled Group, a new education focused venture capital firm that aims to fix what it views as a VC funding scene that isn’t working for education. So he launched Entangled, which is putting VCs to work to make education in America better.
“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, Said Hammerschlag in a statement. His initiative announced today that it received $15 million in Series B funding to invest in new educational solutions. The funding round was led by Hereditas Capital Management and TDM Partners, along with Hammerschlag’s firm, Rethink Education.
Entangled draws upon hands-on experience working with higher education facilities with employers, through its consulting team to identify demand for new and developing solutions. Earlier this year, Entangled launched PathStream, along with Facebook, to close skills gaps with talents from community colleges, and ReUp, which helps colleges bring in adults with some college credits but no degree. A company, Instructure, purchased one of its recent initiatives, Practice, which incorporates video-based skill platforms.
Entangled has also contributed to several other education focused startups: Andela, piloted by 2U founder Jeremy Johnson, helps employers develop tech talent in Africa. Raise.me, a microscholarship platform (with Owl Ventures and Redpoint), and Guild Education (along with Bessemer Venture Partners and Redpoint), which helps employers provide frontline employees with educational benefits, including college tuition assistance.
“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, said Paul Freedman, CEO of Entangled Group.