Edtech startup Vemo Education announced the close of $7.4 million in seed financing, led by University Ventures and NextGen Venture Partners. Route 66 Ventures, Third Kind Venture Capital, Haystack Fund, and Task Force X Capital also participated in the offering.
Vemo works with higher education institutions to develop and deploy income-based financing programs that align the cost of a student’s education with its value. The company’s goal is to provide thoughtful, consumer-friendly alternatives to high-cost and burdensome student loans, changing the way students pay for higher education. According to the company, Vemo Education facilitated $23 million of income share agreements, including Purdue University’s “Back a Boiler” program, during the 2016 to 2017 academic year.
In its announcement, the company said the funding will allow Vemo Education to hire for growth, accelerate investment in its technology platform, and expand market development.