Category: Views

  • President Biden Proposes Two Years of Free Community College

    President Biden Proposes Two Years of Free Community College

    IBL News | New York

    President Biden announced on Wednesday a new $1.8 trillion plan — the American Families Plan — that would provide, among other things, two years of free community college for all Americans. There are over 950 community colleges in the U.S. A total of 30 states already cover tuition at community colleges or universities.

    The plan also would cover the tuition of low and middle-income students attending over 800 existing historically Black colleges and universities, tribal colleges, and other minority-serving institutions.

    Additionally, it would up the maximum Pell Grant for students in financial need by $1,400, bringing the award to $8,295 a year.

    These safety net programs would benefit institutions and students with the fewest financial resources.

    Altogether, the Biden Administration would spend $302 billion over 10 years as part of his American Families Plan:

    • $109 billion for two-year colleges,
    • $80 billion addition for Pell Grants,
    • $62 billion for retention and completion efforts,
    • $39 billion for two free years at minority-serving institutions for most students.

    The plan is less ambitious than Biden’s campaign promise of making public four-year colleges tuition-free for many Americans and doubling the Pell grant.

    The American Council on Education said that the community college plan could “easily revolutionize access to higher education in the United States.” Other reactions in higher education have been largely positive.

    However, the plan won’t be easy to get through Congress, as it is likely to face opposition from the Republican Party.

  • Coursera Rallies 36% on Its Debut, Giving the Company a Whopping Valuation of $5.8 Billion

    Coursera Rallies 36% on Its Debut, Giving the Company a Whopping Valuation of $5.8 Billion

    IBL News | New York

    Coursera stock rose 36% Wednesday, closing at $45 a share, on its first day of trading on the NYSE (New York Stock Exchange).

    This surge gave the online learning platform a whopping market valuation of $5.86 billion, despite the company is still unprofitable.

    On Tuesday, Coursera priced its 15.73 million shares of the IPO at $33 a share, at the high end of Coursera’s expected range of $30 to $33.

    In its offering, the company raised nearly $520 million at an implied $4.3 billion valuation.

    Prior to its debut, Coursera was last valued in the private market at $3.6 billion.

    As shown in the picture above, Coursera’s founders and CEO rang virtually the opening bell of the New York Stock Exchange today, as the whole event was online, due to the pandemic.

    Jeff Maggioncalda, CEO at Coursera said to EdSurge that the new influx of money would be used to build more AI-based teaching.

    “We are always building more AI into the teaching experience and the learning experience,” he said. “On the learning side, that means more personalized learning. On the teaching side, [it means] improved student-success dashboards that predict every student’s grade every day and predict the chance that students stop [out of] the degree program.”

    The stock trades under the ticker symbol “COUR.”

     

    [Written by Mikel Amigot]

    Coursera CEO on IPO: this was a ‘good time’ for public debut

    News about Coursera at IBL News

     

     

  • Has Coursera’s Freemium Push Been Worth it? Analysts Examine the Company’s IPO Prospectus

    Has Coursera’s Freemium Push Been Worth it? Analysts Examine the Company’s IPO Prospectus

    IBL News | New York

    Coursera’s S-1 IPO filing, a 240 pages document that contains a trove of unknown data continues to be analyzed inside the higher ed community.

    Dhawal Shah, founder and CEO at Class Central and one of the most influential writers in the higher ed industry, said: “So to me, this S-1 feels like the series finale of a TV show I’ve been following for ages: all the plots and subplots have been resolved. I finally get to discover whether my theories and speculations over the years were correct.”

    Joshua Kim, educator and columnist at Inside Higher Ed, wrote that the SEC filing of Coursera is “all about risk communication”. “The worry, I think, is that publicly exposing our institutional risk factors would be too risky. Talking about how things could go wrong for our school could end up being a self-fulfilling prophecy.”

    One of the most remarkable points is the fact that the company is still unprofitable (with a net loss of $67 million, up 46% from the previous year’s $46.7 million) despite the pandemic’s general lift to its business and customer base and its gigantic fundraising.

    This questions whether the company’s freemium model used to get a large top-of-funnel pool of free users has been worth it.

    A big question is if the company is too dependent on universities (4,000 of them) as a revenue generator at a moment when institutions are discovering that they can attract an equal number of leads and can use similar technology [the Open edX platform is open-source].

    The enterprise business side — which encompasses Coursera for Campus — has been an easy business, with significant growth in recent years, from $48.3 million in 2019 to $70.8 million in 2020, and with 387 paid enterprise customers. The conclusion is that there is much potential for future growth.

    In the IPO filing, Coursera recognizes that its business model operations are volatile and unpredictable.

    “Our recent, rapid growth may not be indicative of our future growth and we expect our revenue growth rate to decline compared to prior years. (…) “We have incurred significant net losses since inception, and anticipate that we will continue to incur losses for the foreseeable future.”

    “We may need to change the contract terms, including our pricing model, for the course content and credentialing programs offered on our platform, which in turn would impact our operating results.”

    Beyond this, the risks associated with Coursera, as a Delaware public benefit corporation, are significant, as Joshua Kim reflects in his column.

     

  • edX’s Courses Will Be Included in Microsoft Viva’s ‘Employee Experience Platform’

    edX’s Courses Will Be Included in Microsoft Viva’s ‘Employee Experience Platform’

    IBL News | New York

    edX will be part of the Microsoft Viva initiative, making its low-cost, self-paced courses and programs available to employees that use Microsoft Teams and other tools. This way, corporations will be able to contract for bulk licenses for seats in edX through Teams.

    Coursera, Pluralsight, Skillsoft, LinkedIn Learning, Microsoft Learn, and other content providers will be part of Microsoft Viva’s educational library, as well. Microsoft Viva includes LMSs as Cornerstone On Demand, SAP SuccessFactors, and Saba.

    “Our collaboration with Microsoft Viva Learning puts the life-changing tool of education into the hands of millions of more potential learners,” said Adam Medros, co-CEO and President at edX.

    “With the launch of Microsoft Viva, we are bringing learning directly to workers, putting people and teams at the center,” explained said Chuck Friedman, CVP, Employee Experience at Microsoft Corp. “Integration with key partners will add robust content libraries and bring learning into employees’ flow of work.”

    Announced on February 4th, Microsoft Viva is a new employee knowledge and learning platform—or Employee Experience Platform—that integrates with Microsoft 365 and Microsoft Teams productivity and collaboration tools. It is a service designed for the pandemic and post-pandemic times that redefines how employees remotely work.

    Satya Nadella, CEO at Microsoft, justified the initiative by stating: “Every organization will require a unified employee experience from onboarding and collaboration to continuous learning and growth. Viva brings together everything an employee needs to be successful, from day one, in a single, integrated experience directly in Teams.”

  • Docebo LMS, Valued at $2.23 Billion, Sells More Shares. Its Founder to Pocket $7.5M

    Docebo LMS, Valued at $2.23 Billion, Sells More Shares. Its Founder to Pocket $7.5M

    IBL News | New York

    Toronto-based Docebo LMS (TSX: DCBO; Nasdaq: DCBO) announced on Friday the pricing of its marketed secondary public offering of common shares in the U.S. and Canada. It will be a price of $49.67 per share for proceeds of $100 million. The offering comprises 2,013,288 common shares.

    One of the sellers is its Founder and CEO, Italian entrepreneur Claudio Erba, with 150,996 shares [In the picture above]. If the offer is successful, he will receive $7.5 million of the proceeds. The other two shareholders are Intercap Equity Inc (1,811,920 shares) and Alessio Artuffo (50,332 shares).

    The offering is expected to close this week, on January 26.

    The selling shareholders have also granted the underwriters the option to purchase up to 301,993 additional common shares, representing in the aggregate 15% of the total number of common shares to be sold.

    Last year, Docebo showed explosive growth in the stock of 387%, from the pricing of $10.30 per share to $67.77 on January 22. In 2020, it attracted big customers such as Uber, Walmart, and AWS. For fiscal 2021, its revenue is expected to grow 44.7%.

    Currently, its market value is $2.23 billion—similar to Instructure’s Canvas LMS, which was taken off the market last year.

    The Motley Fool recommended yesterday the DCBO stock to buy in 2021, along with two other technology companies (Kinaxis and Lightspeed POS).

     

  • The Biden Administration Extends the Pause on Student Loan Payments for Eight Months

    The Biden Administration Extends the Pause on Student Loan Payments for Eight Months

    IBL News | New York

    In one of his first actions as President, Joe Biden asked yesterday the Education Department to extend a pause on federal student loan payments through at least September 30.

    This way, Biden continues a moratorium that began last March as part of a virus relief package. Borrowers owe a collective $1.5 trillion. On average, students owe between $200 and $299 every month, an amount that for many is simply untenable; about one in every five borrowers is in default, according to the U.S. Department of Education.

    This extension on federal student loans was among 17 actions President Biden signed on his first day in office.

    Biden’s order didn’t include the mass debt cancellation that some Democrats asked him to orchestrate through executive action. He said that action should come from Congress.

    The order excludes over 7 million borrowers whose federal loans are held by private companies or universities.

    During his inaugural address, Biden highlighted the need of getting children back to school during the pandemic. “We can teach our children in safe schools,” he said.

    On the other hand, Dr. Miguel Cardona, Head of Connecticut’s Public Schools, was confirmed for the position of Education Secretary.

    Dr. Cardona, who spent two decades of his career in education as a public school teacher, offers a direct juxtaposition to the Trump administration’s former Education Secretary Betsy DeVos.

    Cardona’s parents are from Puerto Rico and lived in public housing when they moved to Connecticut.

    Cindy Marten, a University of Wisconsin La Crosse graduate, was picked to serve as the Deputy Secretary of Education. She has served as the superintendent of the San Diego Unified School District since 2013. Marten was a classroom teacher for 17 years prior to being appointed superintendent.

    To these nominations, analysts highlighted the fact that the new First Lady, Dr. Jill Biden, is an educator at heart. She is a community college instructor and bestselling author.

    Her profile on The White House website, posted yesterday, said: “As First Lady, Dr. Biden continues her work for education, military families, and fighting cancer. She is a professor of writing at Northern Virginia Community College.”

    “Teaching isn’t just what I do, it’s who I am,” she stated.

  • Apple, Google, and AWS Kick Parler Off—the Social Media App Used by Trump’s Supporters

    Apple, Google, and AWS Kick Parler Off—the Social Media App Used by Trump’s Supporters

    IBL News | New York

    Apple, Google, and AWS/Amazon kick Parler off their platform this weekend, arguing that it has not sufficiently examined its users’ posts, allowing “dangerous and harmful content” that incites violence and lawless action.

    For example, a post, written by L. Lin Wood, a lawyer who had sued to overturn Mr. Trump’s election loss, posted on Parler on Thursday morning: “Get the firing squad ready. Pence goes FIRST.” The post was viewed at least 788,000 times.

    Another message—from a user called @Ronglaister—stated: “Sounds like war! It would be a pity if someone with explosives training were to pay a visit to some AWS Data Centers – the locations of which are public knowledge.”

    Parler—the alt-tech micro-blogging service and alternative to Twitter—has a significant user base of Donald Trump supporters, as well as users banned from mainstream social networks.

    Over the past months, it became one of the fastest-growing apps in the U.S. This Saturday, Parler was listed as the Number 1 in the App Store. Yesterday, it was fighting for its survival, according to its CEO, John Matze, as the service could soon go offline for not being able to find a new hosting service.

    “Big tech really wants to kill competition” and “completely remove free speech of the internet,” he said in a statement online and in several interviews. John Matze also revealed that “every vendor from text messages to email providers to our lawyers all ditched us too on the same day”. [Watch the interview below].

    After President Trump was kicked off Twitter, Parler was a logical choice to become his next megaphone.

    In a letter to Parler on Saturday, AWS/Amazon said that it had sent the micro-blogging company 98 examples of posts promoting violence that were still active. “It’s clear that Parler does not have an effective process to comply with Amazon’s rules.”

    On Friday, Apple gave Parler 24 hours to clean up its app or face removal from the App Store. On Saturday, Apple told the company its measures were inadequate and blocked iPhone owners from downloading the Parler app. (Users who already have installed the app will still be able to use it, as long as it is online.)

    “We have always supported diverse points of view being represented on the App Store, but there is no place on our platform for threats of violence and illegal activity,” Apple said in a statement.

    Several social media startups have promised to offer “unbiased” and “free speech” to Trump supporters, such as Gab.com / MeWe, Rumble, DuckDuckgo, Brave Browser, Telegram, Dlive, CloutHub, and MyMilitia.

    De-Platforming Trump

    On the other hand, several Silicon Valley companies announced they were cutting off President Trump and his supporters from using their services, in light of last Wednesday’s riot at the U.S. Capitol.

    So far, the firms that are de-platforming the President are the following: Stripe, Snap, Pinterest, Spotify, TikTok, Shopify, PayPal, Reddit, Facebook, Twitter, AWS/Amazon, Apple, and Google.

  • Twitter Permanently Suspends President Trump’s Account

    Twitter Permanently Suspends President Trump’s Account

    IBL News | New York

    Twitter permanently suspended yesterday President Trump’s @realDonaldTrump account “due to the risk of further incitement for violence.”

    In a blog-post explaining its decision, Twitter argued that the two latest Donald Trump’s tweets “were likely to inspire others to replicate the violent acts that took place on January 6, 2021, and that there are multiple indicators that they are being received and understood as an encouragement to do so.”

    The two mentioned tweets were posted by the President on Friday, January 8th:

    “The 75,000,000 great American Patriots who voted for me, AMERICA FIRST, and MAKE AMERICA GREAT AGAIN, will have a GIANT VOICE long into the future. They will not be disrespected or treated unfairly in any way, shape, or form!!!”

    Shortly thereafter, the President tweeted:

    “To all of those who have asked, I will not be going to the Inauguration on January 20th.”

    San Francisco, California—based Twitter acted after Facebook, Snapchat, Twitch and other platforms placed limits on the President. Facebook warred Trump from using its service for the remainder of his term.

    Cutting off  Trump from his favorite method of communicating directly with the public, Twitter caused a big disruption in the direct access of the President to the public and the press.

    Donald Trump—with 79.5 million followers—regularly tweeted dozens of times a day. He was the eighth-most followed account on the platform. Former President Barack Obama has the most followers at over 127 million, followed by Justin Bieber, Katy Perry, Rihanna, Cristiano Ronaldo, Taylor Swift, and Lady Gaga.

    De-platforming Trump came as a surprise. When mentions of the possibility that social media companies would be banning him, he repeatedly replied, “They’ll never ban me.”

    Donald Trump Jr. was the only one on the President’s entourage responding. He tweeted: “We are living Orwell’s 1984. Free-speech no longer exists in America. It died with big tech and what’s left is only there for a chosen few.”

    Axios: All the platforms that have banned or restricted Trump so far

  • Higher Ed Institutions Function Only at 75% Capacity. This Gap Costs $50 Billion

    Higher Ed Institutions Function Only at 75% Capacity. This Gap Costs $50 Billion

    IBL News | New York

    Higher Education in the United States is only functioning at 75% capacity—leaving as many as 5 million empty classroom seats each year, says a report by Lumina Foundation. This is the result of the fact that in the last 10 years, higher education capacity has grown 26% while enrollment has only grown by 3%.

    On average, schools with fewer than a thousand students are down to 59% utilization.

    This imbalance between supply and demand has been deepened by the 2020 pandemic’s impact.

    Underutilization—from empty classrooms to vacant labs to unused dorms—translates into higher costs for students and risks the future of higher education. Overall, it costs students, institutions, and states around $50 billion annually, according to a study completed by EY Parthenon.

    “Institutions whose enrollments are flat or decreasing must adapt to the reality of today’s demographics and stop acquiring land, building more dorms, hiring new faculty, and stop constructing rock walls for the 2% of students who might find them interesting,” write Brad Kelsheimer and Courtney Brown, from the Lumina Foundation.

    Lumina encourages higher ed institutions to reinvent themselves, rethinking who they serve (i.e., adults), what they provide (i.e., employment-aligned credentials), and how they deliver.

    Being more relevant and accessible to adults seems a good opportunity given that 90 million working-age adults have no credentials beyond a high school diploma.

    Another piece of advice to reduce costs and increase efficiencies is to develop collaborations and partnerships between schools, like consortia, or shared service agreements between schools.

  • Over Two Billion Children and Young People Lose Out on Education Due to No Internet Access

    Over Two Billion Children and Young People Lose Out on Education Due to No Internet Access

    IBL News | New York

    Around 1.3 billion school-aged children aged 3-17 do not have an Internet connection at home.

    There is a similar lack of online access for 759 million young people aged 15-24. It means that over 65% are unconnected at home. This digital gap prevents them to acquire the skills needed to compete today and isolates them from the job market.

    “Lack of internet access, in the event of school closures, such as those currently experienced by millions due to COVID-19, is costing the next generation their futures,” said Henrietta Fore, UN Children’s Fund (UNICEF) Executive Director.

    Today, a quarter of billion students worldwide are affected by school closures due to the pandemic, relying on remote learning.

    The UNICEF-ITU report How Many Children and Youth Have Internet Access at Home? indicates that only 16% of the poorest households have Internet at home.

    UN officials consulted by IBL News highlighted that This digital divide is perpetuating inequalities.