The textbook business is changing fast, and someone’s going to profit from all the disruption. Clearly, venture capitalists are hoping it will be Chegg.
The Santa Clara, Calif.-based provider of textbook rentals and other online services for students, has raised more than $200 million since 2007 from backers including Gabriel Venture Partners, angel investor Mike Maples, Kleiner Perkins Caufield & Byers, Foundation Capital, Insight Venture Partners, Pinnacle Ventures, TriplePoint Capital and Ace Limited. Now, according to a Friday filing with the Securities and Exchange Commission, it’s adding $25 million more.
“The funding is led by existing investors to fuel the growth of the business,” said Angela Pontarolo, Chegg’s communications manager, in an email.
The filing lists partners at Primera Capital, Hong Kong-based Ace Limited, Kleiner Perkins Caufield & Byers, Gabriel Venture Partners, and Insight Venture Partners as directors. Chegg had raised part of the round as of October, according to the filing. It issued both equity and common stock issued in connection with last year’s acquisition of Zinch, a site for connecting students with colleges and scholarships.
Chegg has been on an acquisition spree for the past couple of years, snapping up startups in the textbook and higher education spaces. In addition to Zinch, last year it purchased Student of Fortune, an online tutorial market, Notehall, a provider of lecture notes, and 3d3r Software Studio, a software design company, in an apparent talent acquisition. Prior acquisitions include Cramster, a homework site, and CourseRank, a site for choosing courses.