Galvanize stimulates $18m

Galvanize, a two-year old startup hub based in Denver, has raised $18m in a series A round led by University Ventures Fund. The company will continue its expansion and is positioning itself as a for-profit school.

Galvanize’s vision is to become a for-profit school, an education company that teaches entrepreneurship and technology skills. Tuition fees for a six-month intensive software development course at Galvanize start at $20,000 although the company offers a monthly payment plan. The students also get a money-back guarantee that their education will quickly land them a well-paying job (48 of its 49 graduates so far have secured relevant jobs). On top of this, students have the opportunity to work with the startups in Galvanize’s incubator – the company’s long-term plan is to build a self-sustaining cycle of students who start companies and hire future students.

The cash injection will fund expansion of the company’s education programmes in San Francisco and Denver, as well as at its existing location in Boulder. The company is currently building a second and larger location in Denver and has plans for future sites including Fort Collins and New York City. . It has already hired a curriculum director and staff to oversee its different locations.

Galvanize is also aiming to make large investments in its education business in the coming weeks and months, via its Galvanize Venture Fund I which will likely surpass $9m.

University Ventures is a venture capital firm backed by Germany-based media conglomerate Bertelsmann and the University of Texas Investment Management Company. It invests only in education-related companies.

Jim Deters, CEO and co-founder, said: “Behind everything we have done at Galvanize has always been an education business. Think of Galvanize as providing layers of learning, and the entrepreneurs there set the context for it. You cannot really learn to build a business from books; you just cannot.”