Instructure Secures $30 Million in Series D Funding
SALT LAKE CITY, June 5, 2013 /PRNewswire/ -- Instructure today announced it has raised $30 million in Series D funding, which brings Instructure's lifetime funding total to $50 million. Bessemer Venture Partners (BVP) led the round with participation from existing investors. The funds will be used to accelerate adoption of Canvas, Instructure's popular learning management system (LMS), used by colleges, universities, K-12 school districts and the company's expanding role in the Massive Open Online Course (MOOC) movement. Instructure's current list of investors includes EPIC Ventures, OpenView Venture Partners and Tomorrow Ventures.
"We are excited to receive this important infusion of capital from our partners, who recognize the disruptive role Instructure is playing in democratizing education," said Josh Coates, CEO at Instructure. "We're building the foundation of a company that will one day access the public markets. We have a long-term vision for education, and we're committed to making it a reality."
Instructure officially launched Canvas in February 2011 after gathering feedback from educators and iterating on the development of the product. Canvas is an enterprise-level, cloud-native software platform that teachers and students use to manage every aspect of the learning experience for in-person and online courses, including posting and submitting assignments, private and group communication and integrating with popular apps and social media channels. Since its launch, Instructure has attracted more than 6 million teachers and students from 425 institutions and booked more than $90 million in contracts.
In November 2012, Instructure announced its response to the MOOC phenomenon by launching Canvas Network, which has delivered more than 40 open online courses offered by institutions ranging from Ivy League institutions to community colleges. Canvas Network allows Instructure customers like Brown University, Ball State University and the University of Central Florida, which has been pioneering online learning for two decades, to make their courses open to the public and to experiment with a variety of class sizes and teaching styles.
In conjunction with the funding news, Instructure announced the appointment of BVP partner Byron Deeter to its board of directors. Deeter is a former cloud computing founder and CEO, and a proven advisor in growth strategy. He brings invaluable experience and business acumen that he acquired while preparing for and executing the IPOs of Eloqua and Cornerstone OnDemand. Deeter also serves on the board for Box, SendGrid Twilio, Criteo, Adap.tv and other up-and-coming tech companies that have flourished from his leadership and influence.
"BVP is excited to invest in one of the true cloud computing and mobile leaders in the education technology market," said Byron Deeter of BVP. "We are compelled by Instructure's unprecedented growth, high student usage and opportunities to expand into adjacent markets. We believe Instructure could become the standard platform for the future of education."
Instructure is strategically positioned to build on the rapid revenue growth it achieved while effecting the first true disruption of the LMS market in public and higher education. The company has thrived under the leadership of CEO Josh Coates. He became Instructure's first investor in 2008 after the sale of his data startup, Mozy, to EMC Corporation for $76 million.
"We backed Josh Coates at Mozy and completely disrupted the online backup market," said Nick Efstratis, managing director at EPIC Ventures. "Josh and team have set out again to disrupt a new market in education. EPIC is excited to continue to support a great team and fully committed to Instructure's vision of improving global education."
Instructure is a technology company committed to improving education. We provide instructors and students with modern tools and resources that empower and simplify the learning experience. Instructure offers Canvas, the open, easy-to-use, cloud-native learning management system, as well as Canvas Network, an index of open, online courses by educators everywhere — from Ivy League institutions to community colleges. To keep learning, visit www.instructure.com.
About Bessemer Venture Partners:
With $4 billion under management, Bessemer Venture Partners (BVP) is a global venture capital firm with offices in Silicon Valley, Cambridge, Mass., New York, Mumbai, Bangalore and Herzliya, Israel. BVP delivers a broad platform in venture capital spanning industries, geographies and stages of company growth. From Staples to Skype, VeriSign to Yelp, LinkedIn to Pinterest, BVP has helped incubate and support companies that have anchored significant shifts in the economy. More than 100 BVP-funded companies have gone public on exchanges in North America, Europe and Asia. See www.bvp.com or follow BVP on Twitter: @bessemervp.
About EPIC Ventures:
Founded by Zions Bank in Salt Lake City in 1994, EPIC Ventures is a premier venture firm focused on early stage technology investments in Internet infrastructure, software and services and advance materials. EPIC helps to create companies, not just fund them. EPIC is focused on the Western States as well as opportunities presented in Boston and NYC. EPIC typically syndicates its investments with the most well-known investors in the United States. EPIC's Fund IV is actively investing in creating the country's future information economy. For more information, please visit www.EPICvc.com.
About OpenView Venture Partners:
OpenView Venture Partners is an expansion-stage venture capital fund based in Boston that is focused on high-growth software, Internet and technology-enabled companies. Through its staff of seasoned operating executives, who collectively bring several decades of technology and management experience to the firm, OpenView is able to help portfolio companies quickly go to market and optimize their product, organization and operational functions. Founded in 2006, the firm invests globally and has approximately $440 million in total capital under management.
TomorrowVentures is a seed and early-stage venture capital firm focused on developing innovative ideas that have the power to change the way we live, interact and thrive. Founded in 2009 with a unique approach to venture capital and an extensive, diverse base of experience and expertise, we add value far beyond capital. Our goal is to grow companies capable of transforming technology, lifestyle and philanthropy. TomorrowVentures is headquartered in Palo Alto, California. Learn more at www.tomorrowvc.com.
Copyright © 2013, Instructure, Inc. All rights reserved. Instructure, Canvas and their respective logos are registered trademarks or trademarks of Instructure, Inc. in the United States and/or other countries. Other brands and names may be claimed as the property of others.
Brad Plothow, Method Communications
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