ConnectEDU, a college and career planning platform filed for Chapter 11 bankruptcy protection Monday night.
According to the filing the company is unable to pay debt owed to over 200 creditors, estimating assets of $1 million to $10 million and liabilities between $10 million to $50 million.
ConnectEDU offers different tools and services to students, supporting them to find the right college and careers based on their skills and interests with the help of academic advisors.
On Monday 55 of the 65 employees received notice of their termination including the company’s CEO Evan Nisonson. Nisonson joined ConnectEDU in May 2013, replacing former CEO Craig Powell. This management change came along with the departure of several board members which could have been an early sign for this week’s bankruptcy points out EdSurge.
Last September ConnectEDU received a $500k grant from the Bill and Melinda Gates Foundation to build a platform for students to collaborate on Common Core standards for literacy.
Founded in 2002, ConnectEDU raised between $28 million to $50 million reports EdSurge.
ConnectEDU is the second edtech company that turned out to be a bad investment for the Gates Foundation. Just last week inBloom closed down after getting into hot water over student data privacy issues.
If the bankruptcy of ConnectEDU is just due to bad management or college and career planning being a weak market is too early to tell as two other edtech startups in the space, Parchment and Collegefeed, have just announced new features for their platforms.
- ConnectEDU Follows Gates Foundation Grant with Ch. 11 Bankruptcy | BostInno
- ConnectEDU Files for Bankruptcy | EdSurge
- HEDLINE: Collegefeed Launches Platform for University Career Centers | EDUKWEST
- HEDLINE: Parchment College Match offers Personalized Applications | EDUKWEST