CampusLogic’s new $120 million growth investment will help the education technology company expand its student financial success platform.
The Phoenix-based company provides financial tools and resources to help the 15 million students who attend colleges and universities understand the processes that often create barriers to student enrollment, engagement and retention, CampusLogic CEO Gregg Scoresby told Crunchbase News.
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“We come in with tools before they start financial planning, as well as while they are already funding their education. Eventually, we plan to move into the repayment space to help them after they graduate,” Scoresby said. “We replace the paper, pencil and manual interactions with software to make things mobile and easy to use.”
Dragoneer Investment Group made the minority investment in the company, CampusLogic’s largest since being founded in 2011. This brings the company’s total funding to date to $192.8 million, according to Scoresby.
As part of the investment, Christian Jensen, partner at Dragoneer Investment Group, will join CampusLogic’s board of directors. He said in a written statement that the company is providing a personalized way for students to access financial aid, while also giving higher education institutions the tools to manage the process digitally.
“A rapidly increasing number of schools are realizing that the days of requiring students to mail or fax critical financial aid paperwork or visit a central office location for assistance and advising are behind us,” he added.
The new investment will help CampusLogic fund future strategic acquisitions and product development, especially in the area of micro-scholarships, with a goal of acquiring a new company or offering a new product every year, Scoresby said.
Earlier this month, the company acquired RaiseMe, a San Francisco-based platform helping students earn those micro-scholarships from higher-ed institutions. Financial terms of the deal were not disclosed. In addition, CampusLogic acquired Funderbolt in 2019 and Cegment in 2017.
Growthwise, CampusLogic is sustaining average annual growth rates of nearly 40 percent, and now has more than 750 college and university customers. The company is also gaining market share in what Scoresby hopes will help eliminate financial barriers for students.
A 2018 LendEDU survey found that 55 percent of students struggled to find the money to pay for college and 51 percent dropped out of college due to financial reasons. In addition, Scoresby said the global pandemic has made dropping off documents at a physical financial aid office “a non-starter.”
“We don’t want financial barriers for students to get an education,” Scoresby said. “There are not enough tools available to help students research how to borrow less or responsibly, as well as find resources other than student debt.”