edly, an income share agreement (ISA) marketplace, has closed its seed financing round which was led by Mistral Venture Partners.
Capital from the round will be used to accelerate its market development and further its efforts in education finance.
The edly marketplace offers liquidity to schools through its capital market of accredited ISA investors. The edly-listed programs comprise of millions of dollars in ISAs from issuers including Holberton Scholl and Bottega.
Through its calculator, schools can see how choice of terms can create an attractive tuition funding alternative for students, it claims.
Edly is also on a mission to improve education affordability, accessibility, and quality, it said. For this, it is offering an alternative to private student loans which are more affordable and flexible, ensure there is a minimum threshold of income before a student makes repayments, and ensure there is a ‘reasonable’ cap on the total number of payments a student would need to make.
Mistral managing partner Code Cubitt said, “edly ISAs are by definition more affordable and strongly preferred by students as an alternative to private student loans. edly ISAs link the cost of education to the value it creates, incentivizing schools toward more responsible, student-centric behaviour. We’re proud to back Chris Ricciardi, Chuck Trafton and the entire edly team at this critical phase of market development.”
As part of the deal, Cubitt will join the company’s board of directors along with Mistral principal Pablo Srugo and independent private investor Daniel R. Gilbert.
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