Female-led Firework Ventures backs Stride Funding in Series A raise

FinTech Stride Funding has secured $12m from a Series A financing round led by Firework Ventures.

Other participants in the round were Juvo Ventures, Graham Holdings, Slow Ventures, GSV Ventures and Sinai Ventures. There was also involvement from a number of unnamed industry and academic leaders.

Founded in 2018, Boston-based Stride Funding offers a flexible way for individuals to pay for their education with Income Share Agreements.

Income Share Agreements offer students an alternative to traditional student loans. With an Income Share Agreement, graduates pay a small, fixed percentage of their future earned income over a 5 year term following graduation.

Stride claims that since its seed round, it has increased the capital committed to fund students 50-fold to over $50m

Stride CEO Tess Michaels said, “Stride is powered by the fundamental belief that equitable education financing should be based on students’ potential and opportunity, not their past. We help young adults underserved by the traditional credit markets gain access to educational programs that improve their economic and career outcomes.

“Closing our Series A is a significant milestone, but we are just getting started on our quest to make the $130 billion private student loan market more equitable, flexible, and above all – a runway for economic mobility.”

Firework Ventures founding partner Brigette Lau added, “We are pleased to back an extraordinary entrepreneur generating impact by realigning EdTech and FinTech. We view Study Now, Pay Later products as the future of educational funding, as they provide much-needed downside protection to students, while aligning the incentives of schools and investors with student outcomes. Stride is purposefully shaping this space and we’re thrilled to join them in this journey.”

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