Lambda School raises $74M for its virtual coding school where you pay tuition only after you get a job
Lambda school is a virtual program training students globally in core coding skills to place them in high paying technology jobs following the program. Students in Lambda school do not pay for the program upfront but rather only after they have landed and are paid by a job obtained through the Lambda School program. In this way, Lambda School creates incentive alignment and drives forth greater accessibility for diverse groups seeking to break into tech.
Annually, 20K individuals graduated from bootcamps in the United States and Canada alone. These bootcamps, in contrast to Lambda School, charge ~12k upfront and require participants to relocate and cover their own expenses for an extended period of time. Not many individuals have this level of discretionary income and flexibility to complete such bootcamps. Even assuming these 20K individuals represent 10% of the market, Lambda School can still go after the remaining 90%, i.e. 180K people. Even a slim 5% of this market would represent 9K annual paying grads, paving the way to creating a billion dollar business in just a couple years time.
Lambda School created and executed a program that truly successfully helps students with no prior educational or professional experience in tech learn all core programming skills to set them up for high paying tech jobs at top companies in the world. They tapped in and connected through a superior program, brand, and community working in tandem with each other to serve a rapidly growing and hungry market eager to leave low paying jobs and start their lives anew. Moreover, Lambda School has found creative ways to grow and increase the caliber of top of funnel students to drive retention and increase placement and salary following initial placement. For example, interested participants are able to test free courses to get a sense of the pace and style of the instruction and allow Lambda School to evaluate student ability outside of the traditional application.
Austen was a part of the S17 Y Combinator batch. He was a founding team member at Stubtopia, social lead at Stryde, co-founder of Grasswire, and senior growth manager at LendUp. Soma invested at the seed round. The company has raised $48m in capital from Bow Capital, GV, GGV, Bedrock Capital and Pioneer Fund.