Class, a virtual class that integrates with Zoom, today announced that it raised $105 million through SoftBank Vision Fund II. The startup, which has been around for 10 months, has raised $146 million in venture funding so far. This is more than the capital raised by Michael Chasen's public company Blackboard.Class, which is still in its infancy but has a valuation of $804million, is fast approaching unicorn status. GSV Ventures and Emergence Capital are also investors in Class. They led the pre-seed round of Class, along with top U.S. edtech fund Reach Capital, Owl Ventures. Insight Partners, Insight Capital and Learn Capital.Class, previously Class for Zoom, provides management and instruction tools that enhance the video conferencing experience. Class has been exclusively integrated with Zoom videoconferencing giant since its launch. This videoconferencing giant rose to prominence in the first months of the pandemic, and is still a major player in synchronous communication. This is part of a series of Zoom enhancements and alternatives that has been launched in the last year. It currently serves over 250 customers.Class's approval of the SoftBank stamp means that Class has made two statements today: One, it takes global expansion seriously and two, I would argue, it signals that it isn't just looking to acquire Zoom.Globalization of EdtechSoftBank loves to support a winner in one industry and to invest millions to ensure it is able to expand its reach into international markets. Clearco, formerly Clearbanc was acquired by the Japanese conglomerate. This money will help the alternative financing startup expand beyond the United States, Canada, and Europe. SoftBank funds startups with international appeal, which I believe is the case at this stage.Class is no exception. Chasen explained that international demand has been strong since Class's seed round. Before Class had made general availability, schools from Japan, Europe, and the Middle East reached out to Chasen. Chasen now focuses on making those who are on the waitlist customers with Class general availability on Mac, Windows and iOS.It will expand internationally by building local teams in countries such as the UK, Ireland, EMEA and Latin America. To its 200-member team, the startup expects to add 100 more team members around the globe.Chasen estimates that Class will receive 65% of the funding to support internationalization, and the rest will go towards product development. One criticism of Class is the fact that it offers the same experience for a second-grade class as it does for a higher-ed one. Chasen agreed with Chasen that the startup should add more detail to its product, perhaps gamification for K-12 or exam proctoring to higher education in future versions.V1 provides what we consider the minimum amount of online teaching tools, he stated, noting features like grade trackers and testing. We need a product that is universally compatible with all markets. In the future, we will make improvements that are specific to each market.Users are still paying for it. Class stated that the company's revenue increased almost 4X in a quarter over a quarter in 2021.Zoom Benefits for FriendsThere is a numbing effect when there are big rounds or flashy valuations. However, the recent Class raise could dispel any doubts about whether it is preparing for a Zoom acquisition.TechCrunch spoke with Chasen for the first time when he stated that Zoom was more focused on scale than the kind of in-depth specialty that Class would like to offer.The company was still in good standing with Zooms early investors. It also acted in multiple markets as a Zoom reseller, which suggests that consolidation is not too far off. It is clear that Class sees itself as an independent business. Startups don't just raise nine-figure funding rounds, unless they are ambitious to become more than an integration.Class could use some of these millions to continue its position as the preferred choice for schools and institutions looking for a Zoom-friendly environment. According to the Class careers page marketing is its main focus for hiring. Six open positions are available in the company's marketing team. These include an international marketing manager as well as a content marketing manager.Engageli is the class closest competitor. It last raised $33 million in Series A funding in May 2021. Jamie Farrell, cofounder and chief operating officer of Engagelis, has left the company in February 2021 to join another edtech startup. The company also doesn't seem to be aggressively hiring via online job boards. Although the details are not definitive, Engageli could face greater competition in bandwidth and marketing now Class has new capitalization and a growing global team of employees.
