Maryland-based edtech firm 2U Inc files for $100M IPO
2U Inc, an educational technology firm that works with colleges and universities to create online learning programs, has filed for an initial public offering of up to $100 million with financial regulators in the US, Reuters reported.
Based in Landover, Maryland, 2U's cloud-based online learning platforms help address the need of not for profit educational institutions in the areas of student enrollment, support, education and other services, the report said. In its website, the company claims, "Our cloud-based software-as-a-service platform allows our partners to educate and engage students globally. 2U's dynamic course content, blended experiences and live face-to-face classes offer students around the world the chance to achieve their highest potential."
According to the documents filed with the US Securities and Exchange Commission, the lead underwriters for the share sale are Goldman Sachs & Co and Credit Suisse Securities (USA) Llc. The company which was established in 2008 is making a bet on the demand for Internet-based post-secondary education programs that are now becoming widely accepted by students, schools and employers, the report said.
Citing figures from the US Department of Education, the company said the US saw a 37% increase in the enrollment of post-secondary degrees in the ten years through 2010. This figure is expected to attain a 13% growth to 23.8 million by 2021, the report said.
According to 2U, its revenue went up 49% to $83.1 million last year. Its clients include the University of Southern California, Georgetown University, among others. In that same period, however, its net loss also increased from $23.1 million to $28 million, the report said.
Backed by investors which include Redpoint Ventures and Highland Capital Partners, 2U said it plans to list on the Nasdaq under the ticker "TWOU." It added that proceeds from the share sale will be deployed towards its marketing efforts, technology investments as well as for its existing services and programs, the report said.
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