Improving Student Persistence and Credit Mobility Through Course Sharing: Why We Invested in Acadeum

This article was originally published on LinkedIn.

Over 40 million Americans currently possess some college credit, but no degree. A growing number of students are being left behind in a world where post-secondary education continues to be vital for quality employment and economic advancement.

Research suggests a lack of access to courses and inflexible class scheduling are two of the biggest drivers of high stop-out rates, with a third of students unable to get the courses they need when they need them. With institutional budgets under tremendous pressure, many colleges and universities increasingly lack the resources to provide the flexible and diverse course options that students require.

Such limitations, coupled with students’ rising expectations for more flexible learning options, not only lead to high stop-out rates, but also loss of credits during transfers. Nearly 40% of students will transfer institutions at least once in their college careers, as they navigate financial challenges and a lack of flexibility. However, states lack clear and equitable statewide articulation agreements, leaving institutions without clear guidelines for determining course equivalency. Consequently, students lose an average of 43% of credits upon transfer.

This harsh reality contributes to the fact that only one in six students transferring from community colleges complete their bachelor’s degree within six years of starting college. It's also important to note that these issues disproportionately affect traditionally marginalized groups, amplifying the urgency to address these challenges in our postsecondary education system.

Acadeum, ECMC Group's Education Impact Fund’s latest investment, has built the market leading technology platform to directly address the above challenges. Leveraging its network of 460+ institutions, Acadeum matches a vast catalog of existing, high-quality courses from regionally accredited institutions with learners who often struggle to access the classes they need to persist and graduate on time. Moreover, institutions using Acadeum operate under a consortial course sharing framework that, unlike course transfer which can be a “complex and costly maze” to navigate, offers the guarantee of credit, final course grade and the utilization of financial aid. Students can use the course sharing platform to repeat a course, catch up due to health withdrawals or leaves of absence, and complete necessary prerequisites.

Acadeum also allows colleges and universities to expand their academic offerings to include cutting-edge, stackable microcredentials in high-demand career fields, taught by industry experts. This strengthens the value of education provided by these institutions and makes them more aligned with immediate workforce needs.

With increasing student demand for flexible, career-relevant course offerings and the number of institutions in precarious financial positions rising by 70% over the last decade due to declining enrollments, the potential for Acadeum's growth and impact is now. Institutions understand they need to invest in new solutions that boost demand, cut costs, and increase revenue to ensure long-term financial stability; Acadeum does just that.

Beyond addressing an acute problem in the post-secondary ecosystem with clear market catalysts, we’re particularly excited to be investing in Acadeum for the following reasons:

Demonstrated Learner Outcomes, Particularly with Underserved Populations: Acadeum has helped thousands of students earn over 50,000 credits with industry-leading completion and pass rates maintained across all student demographics. Additionally, the platform currently serves over 100 Minority Serving Institutions (MSIs) and HBCUs, with nearly 40% of the students on Acadeum’s platform being minorities. Specifically, Acadeum helped the 21-member SREB HBCU-MSI consortium share nearly 1,500 seats across member schools to provide availability to over 775 courses necessary for completing degrees on time.

Experienced, Mission-Aligned Leadership: The Acadeum team’s deep domain experience and nuanced understanding of the postsecondary education ecosystem combined with their ambitious vision has impressed us since our first meeting. David Daniels, Acadeum’s CEO, has an exceptional track record, comprehensive industry knowledge, and a genuine commitment to accessible, high-quality education. This alignment of expertise and mission ensures that Acadeum is well-positioned to effect real change within the sector.

Category Leader: Acadeum powers the largest global course-sharing platform. These institutions and clients span across US and international higher ed, K12 (i.e. dual enrollment), and workforce (i.e. working learners taking courses sponsored by their employer). Unlike its competitors that largely focus on streamlining existing transfer processes or require time-consuming custom integrations, Acadeum is taking a network approach to expand student course access and efficiently facilitate the sharing of institutional resources thereby paving a more direct and affordable pathway to graduation.

Strategic Alignment with ECMC Foundation's Transfer and Credit Mobility Initiative: ECMC Foundation supports mission-aligned projects that promise equitable transfer of credits and timely credential and degree completion, especially for students from underserved groups. Given the complexity of US postsecondary education—especially when it comes to student transfer—college and university leaders are increasingly turning to technology partners, such as Acadeum, to help them better serve the educational needs of their students.

With the new $12M in funding, Acadeum will extend product development and continue their expansion into the K12, international, and workforce development markets. Acadeum is looking to add more brilliant people to its team, so please reach out if you’re interested in joining.

We’re looking forward to joining the Acadeum board and partnering with the team, and our fellow mission-aligned investors at Green Street Impact Partners, Pearson Ventures and Rethink Education. Congratulations to David Daniels, Joshua Pierce, Luis Felipe Rincon, Stephanie Gantos Dickson, and the rest of the Acadeum team for what you have been able to accomplish thus far and a successful Series B!