Madrid-based StudentFinance, a global career mobility fintech platform for reskilling and upskilling the global workforce, announced on Wednesday that it has raised €39M in a Series A round of funding to provide skills-based training in Europe.
The startup has now raised total funding of €44.7M to date.
The round was led by Iberis Capital (equity) and SmartLenders Asset Management (debt), with support from Armilar Venture Partners, Mustard Seed Maze, Giant Ventures, and Seedcamp.
The round also saw participation from UK angel investors Ed Vaizey, the longest-serving Culture & Digital Economy Minister, Tom Blomfield, founder of Monzo, and Martin Villig from Bolt.
Diogo Chalbert Santos, partner at Iberis Capital, says, “StudentFinance has pioneered a new model to address one of the most pressing societal challenges, the digital skills gap. By removing the hurdle of financing courses up-front, they are democratising access to the skills that are in highest demand.”
Building the fintech infrastructure for economic prosperity
According to a statement from StudentFinance, the World Economic Forum predicts that we will need to retrain one billion people by 2030 and Accenture estimates an $11.5T loss in global GDP if we fail to produce the necessary skills.
StudentFinance creates AI models to identify the “most” in-demand skills in various sectors, qualifies the top educational institutions addressing those skills shortages, and then provides flexible funding options to those looking to advance their education through those programmes.
Launched in 2020 by Marta Palmeiro and Mariano Kostelec, the startup partners with education providers, ranging from bootcamps, certificate providers to Masters degrees, offering both a success-based financing model and fixed instalments.
Users only begin to make repayments once working and generating more than a minimum income level. The risk is shared among StudentFinance, the student, and the educational institution because it is a success-based strategy focused on job outcomes.
Currently, the startup operates across several countries in Europe, including the UK, Spain, Portugal, Germany, and Finland.
StudentFinance has already collaborated with training programmes from Ironhack for web development and data analytics, AiCore for machine learning, Capslock for cyber security, Mastered for virtual reality programmes, and Le Wagon for data science.
Through more than 50 education companies, the startup says it has assisted thousands of individuals in enrolling in more than 250 upskilling programmes.
Capital utilisation
StudentFinance says that the funds will be used to launch its operations in the UK and Germany, after receiving authorisation from the FCA and the German financial regulators last year.
The startup also looks to further expand its offering in the Spanish market, having partnered with the European Investment Fund.
Co-founder Mariano Kostelec says, “The demand for workforce upskilling has never been greater. We’re on a mission to plug this gap across Europe while empowering individuals to level-up their careers.”
“Our platform is currently over-subscribed so, with the new funds, we’re looking forward to helping as many people as possible embark on training courses to upskill. We aim to expand our coverage to build the workforce for the future, in particular in areas such as technology, AI and climate change,” adds Kostelec.
StudentFinance wants to work with corporations to enable employee upskilling at scale so that they can future-proof their workforce.
The startup’s potential avenues include supporting the automotive industry’s transition to electric vehicles, advancing the energy sector’s goals for a net zero economy, and facilitating wider application of AI technologies.
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