UniversityNow today announced that it has raised $17.3 million in Series B funding led by University Ventures and Bertelsmann, AG. Current investors, including Kapor Capital, Novak Biddle Venture Partners and Greylock Partners, also contributed to the round. To date, UniversityNow has raised $21.5 million.

The funding will enable UniversityNow to expand the program offerings at New Charter University, the innovative, highly affordable university it launched in March, and grow its network of partner schools. It will also enable UniversityNow to expand its operations in order to serve more students. As part of the investment round, Daniel Pianko, partner at University Ventures, and David Meyer, VP of Product at UniversityNow, have joined UniversityNow's Board of Directors.

Recently, the Next Generation Learning Challenges (NGLC) announced that New Charter University is the recipient of a $300,000 competitive grant for having developed a breakthrough model for college completion. NGLC is a collaborative partnership led by EDUCAUSE, the leading organization for information technology in higher education, and funded primarily by the Bill & Melinda Gates Foundation.

Gene Wade, Co-Founder and CEO of UniversityNow, said, "The U.S. higher education system is poised for change. The cost of a college degree is skyrocketing with no end in sight. As a result, college is financially out of reach for many potential students, especially working adults. While they are the fastest growing segment of the American higher education market, working adults are also the group enduring the greatest increase in student loan debt, in part because they are the least likely to qualify for federal and state grant aid. UniversityNow is uniquely positioned to offer these non-traditional students the opportunity to earn an accredited, high-quality college education that won't leave them saddled with debt."

Launched earlier this year, UniversityNow is building a network of accredited, affordable universities that leverage its innovative learning platform to reduce the cost sufficiently so that students can afford to pay out of pocket. At New Charter University, for example, tuition is $796 per term (or $199 per month) for as many courses as students can successfully complete, books included. In addition, New Charter University's courses and technology platform are open to the public and can be accessed for free by prospective students without enrolling.

New Charter University's online, competency-based education model enables students to learn at their own pace, wherever and whenever they want. Instead of being tied to a fixed schedule where college credit is earned based on "seat time," students advance based on their demonstrated mastery of course material. Under this proven model, students can earn a college degree from an accredited institution at a fraction of the cost of the alternatives.

"Higher education is the key to the economic success of nations and individuals. In the U.S., the system is beginning to undergo a radical transformation due to the competing pressures to reduce costs while satisfying the rapidly increasing demand for college degrees," said Daniel Pianko, partner at University Ventures. "Low-cost models, such as those offered by UniversityNow, will reshape the system by making higher education accessible and affordable for everyone."

"The change most needed in higher education is a re-imagining of the student experience. UniversityNow is committed to doing just that," said Dr. Sal Monaco, UniversityNow's SVP of Education. "With its low-cost, pay-as-you-go financial model and world-class, adaptive learning platform, UniversityNow is best positioned to provide an exciting, technology-driven social learning environment centered on student success that will set the new standard for online higher education."

About UniversityNow

Headquartered in San Francisco, CA, UniversityNow (www.unow.com), is a company that seeks to address the challenges of college cost, access, and completion rates by operating high-quality, affordable, private universities that leverage the latest advances in technology and pedagogy. UniversityNow's mission is to help ensure that high quality post-secondary education is available to people everywhere.

UniversityNow's investors include University Ventures, Bertelsmann AG, Kapor Capital and Novak Biddle Venture Partners, groups that focus on investing in technology-driven companies. Additional investors include Floodgate Capital, Greylock Partners, Charles River Ventures, SV Angel, and 500 Startups, all of whom are leading consumer Internet investors.

About University Ventures

University Ventures (UV) is the premier investment firm focused exclusively on the global higher education sector. UV pursues a differentiated strategy of 'innovation from within'. By partnering with top-tier universities and colleges and then strategically directing private capital to develop programs of exceptional quality that address major economic and social needs, UV expects to set new standards for student outcomes and advance the development of the next generation of colleges and universities on a global scale.