About Union Square Ventures
Union Square Ventures is a venture capital firm that focuses on early-stage, growth-capital, late-stage, and startup financing.
- New York, New York, United States
- 11-50
- Venture Capital
- Early Stage Venture, Late Stage Venture, Seed, Venture
- www.usv.com
About Top Hat
Top Hat’s interactive software helps college professors quickly activate classrooms by engaging students over their own devices.
- Toronto, Ontario, Canada
- 251-500
- Series E
- Private
- tophat.com
Our Investment in Top Hat
Recognizing the Problem with Textbook Prices
Even back when I was in graduate school, I found the price of textbooks to be high and their quality to vary widely.
Now that I have children taking college courses, I was shocked to find textbooks that cost over $200 and are still large physical objects that have to be lugged around!
The high prices and lack of innovation are the result of a market structure which has become highly concentrated among just a few textbook publishers.
That’s why I am excited to announce that USV has led a new round of financing for Toronto-based Top Hat, which last year launched a content marketplace for higher education.
Top Hat’s Innovative Approach
I first met Mike, the founder & CEO of Top Hat, shortly after he had started the company. He told me about his exciting vision for bringing innovation to the higher education market.
But then he said he was getting going by replacing Clickers. For starters I didn’t know what those were as they had come after my time in college.
Once I figured out what a Clicker was, I admittedly thought going after those was, well, boring. But Mike was right and I was wrong.
Starting with classroom engagement turned out to be the perfect basis for establishing a large footprint in higher education. We stayed in touch as Top Hat grew and then last year the team successfully used their user base to launch a content marketplace.
The Potential of the Content Marketplace
While it is still early there are many positive signs about the potential for the content marketplace that remind us of other successful marketplaces we have invested in over the years such as Etsy and Science Exchange.
In addition to individual professors adding content by themselves there are also new behaviors emerging and we are particularly excited about collaboratively developed content.
Much work remains to be done but the company is now well funded to execute on that.
Conclusion
Our investment comes from the USV Opportunity Fund, which we set up in part for this type of situation where we have developed a relationship with an entrepreneur over time.
Also worth noting is that Toronto continues to impress us with its quality and diversity of companies.
We now have five investments there, placing Toronto third as a location in the USV portfolio after New York and San Francisco.
You can read the rest of “Why we invested in” collection here:
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