The student loan crisis throughout the United States has left the venture capitalists looking for the novel approaches to provide financial back up to higher education, but still can the similar systems designed for aiding coders in Silicon Valley to get jobs at Google help underserved students in the developing countries be a part of the global work force?
Similar to the buzzy San Francisco startup named Lambda School, the Microverse is a coding school that uses ISAs or Income Share Agreements by allowing the students to learn now and pay later with a fixed percentage of the future salary. The Microverse is not aiming to compete with the Lambda School heavily for the students of the United States; however, they are looking more heavily at the courting students in the developing nations. Currently, the startup has students from 96 countries, including Cameroon, Nigeria, Kenya, Brazil, Mexico, and India – according to the CEO, Ariel Camus.
Worldwide, the pitch of bringing the ISA model has attracted investor interest. Also, the startup tells the TechCrunch that it has already closed $3.2 million in seed funding from venture capitalists, including Y Combinator and General Catalyst.
Lambda School, along with its ilk, has excited some investors, and there has also been a lot of scrutiny and some questions on whether quickly scaling to venture-sized returns or building revenue by selling off the securitized ISAs ends up by pushing these startups towards cutting corners.
Camus said that the average starting salary for them – its, of course, lower and that’s expected, and the only way they could offer as better learning experience as Lambda or any other campus-based education in United States with the salaries that will be generally lower.