Stride Funding Raises $ 12 Million to Help Students Fund Their Education

Stride Funding, a Boston-based fintech startup, raised $ 12 million in start-up funding to help students supplement their student loans with income sharing agreements.

The funding round was led by Firework Ventures with participation from Juvo Ventures, Graham Holdings, GSV Ventures, Slow Ventures and Sinai Ventures. Several angel investors, including industry and academic leaders, and serial entrepreneurs, also participated in the round. Brigette Lau, founding partner of Firework Ventures, spoke about the company’s participation in the tour, saying:

“We are thrilled to support an amazing entrepreneur who is driving impact by realigning EdTech and FinTech. We see Study Now, Pay Later products as the future of education funding because they provide much-needed protection for students, while aligning school and investor incentives with student outcomes. Stride is purposefully shaping this space and we’re excited to join them on this journey! “

Stride Funding was founded in 2018 by Tess Michaels, a Harvard Business School student at the time, with a mission to help students pay for their education more easily and affordably, improving their economic prospects upon graduation. . The startup achieves this by using revenue sharing agreements, income-linked loans, and deferred tuition agreements (DTAs), which provide more flexibility than traditional loans. Michaels said of this mission:

“Stride is based on the fundamental belief that equitable funding for education should be based on the potential and opportunities of students, not their backgrounds. We help young adults underserved by traditional credit markets access educational programs that improve their economic and career outcomes. Closing our Series A is an important milestone, but we are just beginning our quest to make the $ 130 billion private student loan market fairer, more flexible, and most importantly – an avenue for economic mobility. “

According to Education Data Initiative, 43.2 million American students have accumulated more than $ 1.75 trillion, a value that is growing 6 times faster than the country’s economy. Of all the debtors, over 35 million found themselves in the need to seek debt relief because they were unable to manage the payments. Stride Funding believes that by providing alternatives to traditional student loans, it can help prevent the collapse of financial systems while helping students achieve their college dreams without being tied to life-long debt.

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