MasterClass

Pre-IPO

A platform where celebrities share their experience and users get closer to their idols

Mark Price
$38.60 0% a year
Annual Price chg.
0%
Valuation
$2.85B
Funds Raised
$461M
Last Round
$225M 2021
Round Date
2021, F

About the Company

MasterClass is a streaming platform with training courses from world-famous experts and celebrities. The project was founded with the motto “Everyone should have access to genius.”

On the platform you can learn from the most famous professionals in their field: cook with Gordon Ramsay, make movies with Martin Scorsese or James Cameron, play tennis with Serena Williams.

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The service works on a subscription. There are more than 150 courses available on the platform, and each month this number is growing. The learning process is organized in the form of Hollywood-quality video lessons, after which a user can do the homework and share the results with other students.

Business Growth Phase

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Market Opportunities

The global E-learning market size is projected to grow $370B by 2026, from $226B in 2020, at a CAGR of 8.5% during 2021-2026. The pandemic has contributed to the market expansion by increasing interest from both students and investors.

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MasterClass content is aimed at a wide audience – it is both informative and entertaining. Online entertainment market is projected to reach $652.5B by 2027 with annual growth of more than 20%.

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In spring 2021, MasterClass held another successful investment round. The company plans to invest the accumulated funds in its global expansion – to offer classes in Spanish, French and German. MasterClass also plans to allocate a separate direction for work in the B2B segment. This will open up new opportunities for MasterClass: according to forecasts, the corporate online learning market will grow by 13% annually and will exceed $37B by the end of 2025.

Financials and Valuation

Over 8 investment rounds, MasterClass has raised a total of $461.4M from 35 investors, including Fidelity Management, UTA Ventures, Baillie Gifford and others. In May 2021, as part of the Series F round, MasterClass raised $225M at a valuation of $2.75B.

The company's growth will be driven by international expansion, the opening of the new business segment that targets the B2B market and the launch of new courses on the platform. The presence of stars on the platform will help MasterClass promote its public placement.

Risks

MasterClass competes with many players in the market. On the one hand, these are online training platforms: Coursera, Udemy, Udacity. On the other hand, the company also competes with various media content producers, including such streaming platforms as Netflix, Disney Plus, HBO Max, Spotify’s music platform, and the audiobook and podcast service Storytel, etc.

The company constantly invests in the production of video content. This makes the business less profitable than traditional online learning platforms and slows the company’s break-even.

MasterClass’s success depends heavily on its ability to attract celebrities and experts, and problems in finding them can lead to lower revenues and the loss of clients.

Low liquidity: investing in private companies at the pre-IPO stage is an opportunity to make money over a few years. If you exit early, the price may be significantly different from the purchase price or the selling process may take more than 1 month.