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- Lambda School
Lambda School Valuation, Funding & Investors
Lambda School is valued at $150M as of March 2019.
Last Lambda School valuation
$150M
Series B · Mar 2019
Last Lambda School funding round
$74M
Series C · Aug 2020
Cumulative funding Lambda School raised
$122M
across 5 funding rounds
Key investors in Lambda School
Y Combinator
GV
Notable Capital
Stripe
Tandem Capital
Liquid 2 Ventures
About Lambda School
Lambda School is an outcomes-based coding bootcamp that trains students for software engineering roles through an income share agreement model where tuition is deferred until employment. The program spans 9 to 12 months of full-time instruction in full-stack development, data science, and backend engineering, with a curriculum updated quarterly to align with employer needs. Established in 2017 and headquartered in San Francisco, it has graduated over 10,000 alumni placed at companies like Microsoft, Amazon, and Spotify, achieving a 78% job placement rate within six months.
Founded
2017
HQ
Website
Status
Privately held
Customer focus
B2C
Revenue model
Subscription
Valuation
$150M (Mar 2019)
Sectors
Lambda School Valuation
Lambda School is currently valued at $150M, based on its Series B in March 2019.
The $30M round was led by Bedrock, with participation from Sound Ventures, Y Combinator, GV, Vy Capital and Notable Capital.
Lambda School valuation by funding round
| Date | Stage | Valuation |
|---|---|---|
| Mar 2019 | Series B | $150M |
Lambda School Funding History
Lambda School has raised a total of $122M across 5 funding rounds.
Lambda School's first fundraising round was a $100K pre-seed round in August 2017. The most recent completed round was a $74M Series C in August 2020.
Lambda School funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Aug 2020 | Series C | Gigafund (lead); Stripe; Y Combinator; GV; Neo; Tandem Capital; LAUNCH; Notable Capital | $74M | - | Lambda School, an online coding bootcamp offering computer science courses in data science and full-stack web development with an income share agreement (ISA) model where students pay tuition only after securing a job earning above a threshold, raised $74 million in a Series C round on August 21, 2020, led by Gigafund with participation from GV, GGV, Neo, Quiet Capital (noted in some sources as Notable Capital), Stripe, Tandem Capital, and Y Combinator. This brought total funding to approximately $122 million. Gigafund's Stephen Oskoui joined the board. The company, previously backed by GV in a $30 million Series B in January 2019 at a $150 million post-money valuation (led by Bedrock Capital) and earlier rounds including a $14 million Series A and $4 million seed, did not disclose the Series C valuation but confirmed it exceeded the prior $150 million mark. Funds were allocated to refine curriculum, expand programs, improve graduate employment support, and meet surging demand amid the pandemic, with plans to regrow headcount from 160 staff, including more instructors. CEO Austen Allred expressed hope that this would be the final raise, aiming for profitability and long-term sustainability, as the company was not yet profitable despite turning down larger offers. Lambda had faced challenges, including layoffs of 19 employees in April 2020 and regulatory issues, but secured approval from California's Bureau for Private Postsecondary Education shortly before the announcement, though without ISA support for new California students. The investment aligned with Gigafund's focus on decade-long builders like SpaceX, betting on Lambda's potential to disrupt expensive education through its outcome-based model, despite criticisms likening ISAs to indentured servitude. This round positioned Lambda among prominent edtech fundraises, following Springboard's $31 million, amid rising demand for tech training. |
| Mar 2019 | Series B | Bedrock (lead); Sound Ventures; Y Combinator; GV; Vy Capital; Notable Capital | $30M | $150M | Lambda School, founded in 2017, is an online computer science academy offering a six-month course with an income share agreement (ISA) model: no upfront fees, but graduates pay 17% of income for two years if earning at least $50,000 annually, capped at $30,000 total. The ISA model aligns incentives by tying payments to job outcomes, differentiating from traditional tuition or predatory for-profits, and Lambda owns the ISAs directly. The company participated in Y Combinator in 2017, raised a $4M seed round, followed by a $14M Series A in October 2018 led by GV and Stripe, and then a $30M Series B in January 2019 led by Bedrock Capital with participation from GV, Vy Capital, GGV Capital (noted in some sources), Sound Ventures, and Y Combinator. This Series B valued Lambda School at a $150M post-money valuation. The funding was aimed at scaling operations, expanding course offerings into cybersecurity, nursing, and medicine, building hiring networks, and entering new markets including Europe (launched January 2019) and Canada in the first half of 2019. At the time, Lambda enrolled around 1,000 to 1,500 students, with 83% of graduates hired within six months at a median starting salary of $70,000 at companies like Uber and Nordstrom. CEO Austen Allred noted the company could achieve profitability quickly if halting growth, emphasizing outcome-driven expansion. |
| Oct 2018 | Series A | GV (lead); Social Starts; Stripe; Bow Capital; AAFM | $14M | - | Lambda School raised $14 million in a Series A funding round around August/October 2018, led by GV with participation from Stripe, bringing total funding to $18.1 million. The company operates an online coding school offering 30-week full-time or 12-month part-time training programs to produce software engineers, using an income-share agreement model where students pay only after earning at least $50,000 annually, capped at a total repayment. Funds were allocated to offer more new courses and expand the academy. At the time, Lambda School had 700 students enrolled and over 75 graduates hired, with 83% placement from early cohorts and an average salary increase of $47,000 for hires. |
| Feb 2018 | Seed | Tandem Capital (lead); Y Combinator (lead) | $4M | - | Lambda School raised $4 million in a seed round on February 3, 2018, led by Tandem Capital and Y Combinator with 21 total investors. The funding supported expansion of its income-share agreement model for online coding bootcamps, covering costs for thousands of students. The company offered synchronous full-time six-month computer science and machine learning courses, with tuition financed via income-share agreements capped at $30,000 repayment after securing a developer job paying at least $50,000 annually, or upfront payment of $20,000. By early 2018, Lambda School had graduated its first class of 20 students. |
| Aug 2017 | Pre-seed | Y Combinator; Liquid 2 Ventures | $100K | - | - |
Who has invested in Lambda School?
15 investors have backed Lambda School across its funding rounds, including Y Combinator, GV, Notable Capital, Stripe, Tandem Capital and Liquid 2 Ventures.
Lead investors include Gigafund, Bedrock, GV, Tandem Capital and Y Combinator.
Lambda School Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| 4 | Lead | Aug 2017 | ||
| 3 | Lead | Oct 2018 | ||
| 2 | Participant | Oct 2018 | ||
| 2 | Lead | Feb 2018 | ||
| 2 | Participant | Mar 2019 | ||
| 1 | Participant | Mar 2019 | ||
| 1 | Participant | Oct 2018 | ||
| 1 | Participant | Aug 2017 | ||
| 1 | Lead | Aug 2020 | ||
| 1 | Participant | Aug 2020 | ||
| 1 | Participant | Oct 2018 | ||
| 1 | Lead | Mar 2019 | ||
| 1 | Participant | Oct 2018 | ||
This data is available for Pro users. Sign up to see all 15 Lambda School investors. Start Free Trial | ||||
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Start Free TrialInvestments by Lambda School
Lambda School has invested in 1 company to date.
Latest investment by Lambda School was on April 22nd 2021. Lambda School invested in Ophelia in their $15M Series A round.
Latest Investments by Lambda School
| Description | Ophelia is a New York City-headquartered telehealth provider delivering medication-assisted treatment for opioid use disorder. Founded in 2019, the service prescribes buprenorphine via video consultations paired with behavioral coaching. Ophelia operates in 40 U.S. states, emphasizing patient autonomy and privacy without mandatory rehab attendance. |
| HQ Country | |
| HQ City | New York City, NY |
| Deal Date | 22 Apr 2021 |
| Round | Series A |
| Raised | $15M |
| Investors | General Catalyst; Menlo Ventures; Y Combinator; Harry's; Carbon Health; Refactor; Allbirds; Warby Parker; PillPack; Operator Partners |
| Valuation | undisclosed |
| EV/Revenue | |
| EV/EBITDA | |
This data is available for Pro users. Sign up to see all Lambda School investments and their VC round multiples. Start Free Trial | |
Lambda School Competitors
Lambda School competitors include listed companies like DSC Investment and Morgan Stanley Emerg Mkts, and private ones like Allocations, Leverage Edu, Yimi Counseling and Career Dose Pvt Ltd.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Private | $5M | - | $150M | - | ||
| Private | $11M | - | $150M | 13.6x | ||
| Private | - | - | $150M | - | ||
| Publicly listed | $28M | $16M | $150M | - | ||
| Private | - | - | $150M | - | ||
| Publicly listed | $22M | - | $148M | - |
Lambda School Public Comps
Lambda School is still privately-owned, but its public comps include DSC Investment, Morgan Stanley Emerg Mkts, Flerie, Mercia Asset Management, Triple Point Venture VCT, Sparta Invest, GalaxyEdge Acquisition, DAOL Investment, Legacy Education and I-Scream Media.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $28M | $16M | 6.2x | - | 11.0x | - | |||
| $22M | - | 6.8x | - | - | - | |||
| - | ($80M) | - | 12.1x | (1.5x) | (20.9x) | |||
| $46M | ($7M) | 2.6x | 2.6x | (17.0x) | 11.3x | |||
| $4M | - | 41.0x | - | - | - | |||
| $3M | ($7M) | 29.1x | - | (13.1x) | - | |||
| - | ($45K) | - | - | (3520.1x) | - | |||
| $252M | - | 3.4x | - | - | - | |||
This data is available for Pro users. Sign up to see all Lambda School competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Lambda School
| When was Lambda School founded? | Lambda School was founded in 2017. |
| Where is Lambda School headquartered? | Lambda School is headquartered in San Francisco, CA, United States. |
| Is Lambda School publicly listed? | No, Lambda School is a private, VC-backed company. |
| What is Lambda School's valuation? | Lambda School was last valued at $150M in its Series B in March 2019. |
| How much funding has Lambda School raised? | Lambda School has raised $122M across 5 funding rounds. |
| What was Lambda School's last funding round? | Lambda School's last funding round was a $74M Series C in August 2020, led by Gigafund. |
| Who are Lambda School's investors? | Lambda School's investors include Y Combinator, GV, Stripe, Tandem Capital, Notable Capital, Sound Ventures, Social Starts, Liquid 2 Ventures, Gigafund, Neo and 5 others. |
| Which companies are comparable to Lambda School? | Companies comparable to Lambda School include Allocations, Leverage Edu, Yimi Counseling, DSC Investment, Career Dose Pvt Ltd and Morgan Stanley Emerg Mkts. |
| How many companies has Lambda School invested in? | Lambda School has invested in 1 company, including Ophelia. |
| What was Lambda School's last investment? | In April 2021, Lambda School invested in Ophelia's $15M Series A alongside General Catalyst, Menlo Ventures, Y Combinator and 7 other investors. |
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