Upskilling platform Degreed has raised $153 million in Series D funding. The investment, which was co-led by Sapphire Ventures and Riverwood Capital, values the company at $1.4 billion.
The funding will be used to accelerate product development, enhance data infrastructure, fuel global expansion, and pursue strategic acquisitions.
Dan Levin, former COO of Box, will succeed Chris McCarthy as CEO of Degreed. McCarthy will remain in a strategic advisory capacity and sit on Degreed’s Board of Directors.
After almost eight years at Degreed, McCarthy is stepping down as CEO. McCarthy led Degreed through a period of growth with compound annual revenue growth of 76% and an 800% increase in enterprise value during his three and a half years as CEO.
“When the Degreed Board and I put this transition plan in place last year, the goal was to be as successful as we were in 2017 when co-founder David Blake made me the CEO. After a months-long process, we’re thrilled to have someone of Dan’s caliber driving the next phase of our growth.” said McCarthy. “Dan’s extensive experience scaling high-growth companies aligns with our future trajectory. He’s not only a great operator, but an exceptional leader and coach who is deeply connected to Degreed’s mission.”
“I am delighted to join the Degreed team. Chris and the entire company have done an amazing job delivering a service that over one-third of Fortune 50 companies use every day to retain, reskill and develop their most valuable employees. The workforce of the future will need to build and activate new skills on a continuous basis, and we are uniquely positioned to help them do just that,” said Levin.
“Organizations are changing their approach to talent and skills post-COVID-19,” said Kat Kennedy, President and Chief Experience Officer of Degreed. “Despite billions of dollars of investment in HCM, talent and learning systems, most workers still don’t see a clear path to career growth at work. And most businesses still don’t have effective ways to sense and respond to shifting demand for workforce skills. Degreed is helping to solve that by integrating skills intelligence with all of the ways people learn and grow on-the-job — all in one simple, fluid experience.”
“Investing in skills, culture, and career growth has become a critical differentiator for employers,” said Jeff Parks, Co-Founder and Managing Partner at Riverwood Capital. “Under Chris’ leadership, Degreed has transformed the learning experience and upskilling conversation. We are thrilled to build on that vision in partnership with Dan and this incredible team, and are focused on the next phase of their scalability journey and supporting their mission to equip people with the skills they need to redefine their careers, their companies, their fields, and the world.”
The total funding round including equity and debt reached $183 million and included participation from current investors Signal Peak Ventures, Owl Ventures, GSV Ventures, Founders Circle, Contour Investment Partners, Section Partners, and Alliance Bernstein, as well as new investor Firework Ventures.
Arya has been a part of the Content & Research Team at Hrnxt.com. She is a keen observer of economic developments, emerging businesses, people in business and keeps a tab on latest happenings in the business environment.