By Hamza L - Edited Sep 30, 2024
Degreed has positioned itself as a leader in the corporate learning and talent management industry, offering a comprehensive Learning Experience Platform (LXP) that facilitates workforce upskilling and reskilling. With over 400 clients across 209 countries and 6.5 million active users, including one in three Fortune 50 companies, Degreed has demonstrated significant market penetration and growth potential.
The company's innovative approach to lifelong learning and skills development sets it apart in the competitive EdTech landscape. Degreed's platform integrates various learning resources, from online courses to informal learning activities, creating a unified access point for professional development. This unique offering, combined with powerful analytics and skill measurement tools, has attracted high-profile corporate customers such as Boeing, Bank of America, and NASA.
Investors may find Degreed attractive due to its strong financial backing from reputable investors like AllianceBernstein, GSV Ventures, and Sapphire Ventures. The company's revenue growth is also promising, with annual revenue reported to be "right around $100 million" as of April 2021. Additionally, Degreed's recent acquisitions, such as Learn In, demonstrate its commitment to expanding its product offerings and market reach.
However, potential investors should also consider the competitive nature of the EdTech industry and the ongoing need for innovation to maintain market leadership. While Degreed has shown impressive growth, it operates in a rapidly evolving sector where new technologies and competitors could emerge quickly.
Overall, Degreed's strong market position, innovative platform, and growth trajectory make it an intriguing investment opportunity for those interested in the future of corporate learning and skills development. As with any investment, thorough research and careful consideration of both potential rewards and risks are essential.
As Degreed is not publicly traded, traditional stock purchasing methods are not available. However, we at Linqto offer accredited investors the opportunity to invest in Degreed through our platform. Here's a step-by-step guide on how to buy Degreed stock through Linqto:
1. Verify Your Identity: To ensure the security of your account and comply with financial regulations, you'll need to provide a government-issued ID, such as a passport or driver's license, along with a self-photo. This process helps us maintain a safe and compliant investment environment.
2. Accreditation: As an accredited investor, you'll need to indicate your status on our platform. This step is crucial for compliance with financial regulations and ensures that you have the financial sophistication to understand the risks associated with private investments like Degreed.
3. Explore Available Shares: Once your account is set up, you can browse the available shares of Degreed on our platform. We provide detailed information about the company, including its innovative Learning Experience Platform (LXP) and its impressive client base, which includes one in three Fortune 50 companies.
4. Make Your Investment: When you're ready to invest, you can fund your investment through various methods, including bank transfers, ACH, wire transfers, or digital wallets. One of the advantages of investing through Linqto is the ability to start with a relatively small minimum investment of just $2,500, making it accessible for many accredited investors to participate in Degreed's potential growth.
5. Manage Your Investment: After making your investment, you can easily monitor and manage it through our platform or mobile app. This feature provides you with control over your investment and potential liquidity options, allowing you to stay informed about Degreed's progress in the corporate learning and talent management industry.
By following these steps, accredited investors can gain access to Degreed's pre-IPO stock, potentially benefiting from the company's innovative approach to lifelong learning and skills development. Remember, while Degreed has shown impressive growth and has a strong market position, investing in private companies carries risks, and it's essential to conduct thorough research and consider your financial goals before making any investment decisions.
While direct investment in Degreed through Linqto's platform is an option for accredited investors, there are alternative ways to gain exposure to the corporate learning and talent management industry. These alternatives can provide indirect benefits from the growth of companies like Degreed and the broader EdTech sector.
One approach is to invest in Exchange-Traded Funds (ETFs) that focus on the education technology sector. For example, the Global X Education ETF (EDUT) tracks companies involved in digital learning and education technology. While Degreed isn't directly included in this ETF, it provides exposure to similar companies operating in the same space, potentially benefiting from industry-wide growth trends.
Another option is to consider mutual funds specializing in technology or specifically EdTech companies. Funds like the New Horizons Fund or the Technology Opportunities Fund often include holdings in innovative education and workforce development companies. These funds are managed by professionals who research and select companies they believe have strong growth potential in the sector.
Investors might also look at larger, publicly traded companies that operate in similar markets or have partnerships with Degreed. For instance, companies like Workday (WDAY) or Cornerstone OnDemand (CSOD) offer related services in the human capital management space and could benefit from the same market trends driving Degreed's growth.
For those interested in a broader approach, investing in technology-focused index funds can provide exposure to the overall tech sector, which includes EdTech and corporate learning platforms. Funds like the Vanguard Information Technology ETF (VGT) or the Technology Select Sector SPDR Fund (XLK) offer diversified exposure to technology companies, some of which may be involved in or benefiting from the digital transformation of corporate learning.
It's worth noting that while these alternatives can provide exposure to the industry, they may not offer the same potential for high growth as a direct investment in a pre-IPO company like Degreed. However, they typically come with lower risk and are more accessible to a wider range of investors.
Lastly, for those particularly interested in the skills development and corporate learning space, keeping an eye on Degreed's partners and clients could provide investment ideas. Companies that utilize Degreed's platform, such as Boeing, Cisco, or Intel, may see benefits in their workforce development and could potentially outperform in their respective sectors.
Remember, while these alternatives can provide exposure to the industry, they don't offer direct investment in Degreed. Each option comes with its own set of risks and potential rewards, and it's crucial to conduct thorough research and consider your financial goals before making any investment decisions.
While Degreed has established itself as a leader in the corporate learning and talent management industry, it operates in a competitive landscape with several notable players. Here are some of Degreed's key competitors:
1. Coursera (NYSE: COUR)
• A leading online learning platform offering courses, specializations, and degrees from top universities and companies worldwide
• Serves both individual learners and corporate clients through Coursera for Business
• Went public in March 2021, demonstrating strong market interest in EdTech companies
• Reported $415.3 million in revenue for 2021, showcasing significant growth potential in the online education sector
2. Udemy (NASDAQ: UDMY)
• Offers a vast marketplace of online courses taught by expert instructors across various subjects
• Provides Udemy for Business, a corporate learning solution competing directly with Degreed
• Went public in October 2021, further validating the EdTech market's potential
• Reported $518.2 million in revenue for 2021, indicating strong market traction
3. Cornerstone OnDemand
• A cloud-based learning and talent management software provider
• Offers a comprehensive suite of HR solutions, including learning, performance, and recruitment
• Was acquired by Clearlake Capital Group in 2021 for $5.2 billion, highlighting the value placed on HR tech companies
• Serves over 6,000 customers and 75 million users globally, demonstrating significant market penetration
4. LinkedIn Learning (formerly Lynda.com)
• Part of Microsoft's LinkedIn platform, offering a wide range of professional courses
• Leverages LinkedIn's vast professional network for enhanced learning experiences and career development
• Benefits from Microsoft's resources and integration with other productivity tools
• While specific revenue figures aren't disclosed, LinkedIn's overall revenue grew 37% year-over-year in Q2 2023, indicating strong performance in its business segments
These competitors, like Degreed, are capitalizing on the growing demand for corporate learning and skills development solutions. Each offers unique features and market positioning, contributing to a dynamic and innovative EdTech landscape.
As we've explored, investing in Degreed presents an intriguing opportunity in the rapidly evolving corporate learning and talent management industry. With its innovative Learning Experience Platform (LXP), impressive client base including one-third of Fortune 50 companies, and strong financial backing, Degreed has positioned itself as a leader in the EdTech sector.
For investors looking to diversify their portfolios with emerging industry leaders, private market opportunities like Degreed can be an attractive option. However, it's crucial to consider both the potential benefits and risks associated with investing in pre-IPO companies.
While direct investment in Degreed stock is not available through traditional public markets, accredited investors can gain access through platforms like Linqto. Our platform offers a unique opportunity to invest in promising private companies with lower minimum investments than typically required in private markets.
Alternatively, investors can gain exposure to the broader EdTech and corporate learning sector through ETFs, mutual funds, or by investing in publicly traded companies operating in similar spaces. These options may offer lower risk profiles but potentially less direct exposure to Degreed's growth potential.
It's important to note that the corporate learning and talent management industry is highly competitive, with players like Coursera, Udemy, and LinkedIn Learning vying for market share. This competitive landscape underscores the importance of thorough research and careful consideration of Degreed's unique value proposition and growth prospects.
By considering private market investments alongside more traditional options, you can potentially:
- Diversify your investment portfolio
- Gain exposure to cutting-edge companies and technologies
- Participate in the growth stories of innovative businesses like Degreed
Remember, investing in private companies carries unique risks and potential rewards. It's crucial to conduct thorough research and carefully consider how these investments align with your overall financial strategy and goals.
If you're interested in learning more about private market investment opportunities, including potential access to companies like Degreed, we invite you to explore Linqto's offerings. Our team of investment specialists is available to provide more information and guide you through the process of private market investing, helping you make informed decisions in this exciting and dynamic sector.
While specific profitability information is not publicly available, Degreed's revenue was reported to be 'right around $100 million' as of April 2021. The company has shown significant growth, with a 326% increase in active users since June 2019. However, profitability in high-growth tech companies can vary as they often prioritize expansion over short-term profits. Investors should research the most current financial information for a clearer picture of Degreed's profitability status.
Degreed's exact valuation and market cap are not publicly disclosed as it is a private company. Valuations for private companies can fluctuate based on various factors, including funding rounds and market conditions. In 2020, Degreed raised $32 million in a funding round led by Owl Ventures, but the valuation at that time was not revealed. For the most accurate and up-to-date information on Degreed's worth, potential investors should consult with financial advisors or the company directly.
Degreed's headquarters is located in Pleasanton, California, United States. The company was founded in 2012 and has since grown to serve over 400 clients across 209 countries. While headquartered in California, Degreed operates globally, with a team of over 600 employees spread across six continents as of 2020. This global presence allows Degreed to serve its international client base effectively.
Yes, accredited investors can potentially buy Degreed stock pre-IPO through platforms like Linqto. We offer the opportunity to invest in Degreed with a minimum investment of $2,500, making it accessible for many accredited investors to participate in Degreed's potential growth before it goes public. However, it's important to note that investing in pre-IPO companies carries unique risks and requires careful consideration of your financial goals. Read more about Degreed stock
Currently, there is no official announcement or confirmed date for Degreed's IPO. The company's strong market position and growth could make it a potential candidate for going public in the future, but any discussions about an IPO remain speculative at this time. Read more about Degreed IPO news for the most up-to-date information on the company's potential public offering plans.
The information provided above is based on online discussions and is not intended as investment advice. Linqto does not endorse or guarantee the accuracy of this information, and we strongly recommend conducting your own research or consulting with a professional advisor before making any investment decisions. Linqto cannot be held liable for any investment outcomes resulting from the use of this information.