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Startups

A New Startup by Ex-Duolingo Exec Raises $13M to Target Affordable Education

19 Nov, 2024
A New Startup by Ex-Duolingo Exec Raises $13M to Target Affordable Education

Three former Duolingo executives are setting their sights on making higher education more affordable and accessible with a new venture tentatively called Outsmart Education. Co-founded by Jorge Mazal (CEO), Gina Gotthilf (CMO), and Daniel Falabella (CPO), the startup has secured $13 million in seed funding. Investors include Khosla Ventures, Karman Ventures, Latitud Ventures, Lightspeed Ventures, and angel contributors like Airbnb's Lenny Ratchinsky and 20Growth. The funds will fuel hiring and product development as the company refines its strategy.

The motivation behind Outsmart stems from Mazal's personal struggles with financing his education. As an undergraduate international student in the U.S., he juggled jobs, scholarships, and other means to afford tuition. Later, his pursuit of two master’s degrees at Harvard and Wharton left him with $250,000 in debt. “I had to take a part-time job picking up trash in my apartment complex just to make ends meet,” Mazal shared, highlighting systemic issues in higher education affordability.

Outsmart’s mission is ambitious: to revolutionize access to college-level education, addressing affordability, accessibility, and personalization. Although the company is operating in stealth mode and hasn’t disclosed its specific plans, the founders’ track record speaks volumes. Each co-founder brings extensive experience from industry-leading companies. Mazal previously held roles at MyFitnessPal, Lucid, and Zynga, while Gotthilf contributed to Tumblr's growth, and Falabella held senior positions at Dropbox and Lucid Software.

This effort arrives at a time when families across the U.S. grapple with rising college costs. For the 2024-2025 academic year, tuition at private colleges increased by 5.5%, and public institutions saw a 2% rise. Meanwhile, the total student loan debt in the country has ballooned to $1.6 trillion. The urgency to innovate within this space is clear.

Ethan Choi, a partner at Khosla Ventures, expressed optimism about Outsmart’s potential, stating, “Education has completely transformed my life and will impact my family for generations. What they’re doing could be world-changing.” While Outsmart's exact positioning within the education technology ecosystem is yet to be revealed, its focus on addressing systemic barriers differentiates it from existing platforms like Tuition Tracker, which compares college costs, and College Rover, which matches students with suitable colleges.

The Outsmart team believes their approach will surpass current alternatives. “We aim to be better than the higher-ed options out there in every dimension,” Mazal asserted. By combining their expertise and resources, they aim to challenge entrenched norms in higher education and offer a scalable, impactful solution to a global challenge.



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