\Public & Academic News/ Alt-MBA school Jolt raises $14.1m to triple number of campuses As MBA applications decline, investors are putting their money behind new types of professional development companies. By Maija Palmer 13 January 2020 \Public & Academic Tony Blair’s son secures UK’s biggest ever edtech raise By Freya Pratty 19 January 2021 \Public & Academic News/ Alt-MBA school Jolt raises $14.1m to triple number of campuses As MBA applications decline, investors are putting their money behind new types of professional development companies. By Maija Palmer 13 January 2020 Jolt, the Israeli startup challenging the traditional MBA market with cheaper, more flexible course, is planning to more than triple the number of campuses it runs after raising $14.1m from Balderton Capital. The pay-by-month business school offers students live lessons delivered by business leaders via video link. Students sit physically in custom-made, high-tech classrooms, while the lecturers dial in. Students can mix and match from 80 course units, completing them at their own pace. The programme is aimed at students who already have university degrees and around two to three years of work experience. A typical course (called a NAMBA or “not an MBA”) costs £175 a month, or £4,500 in total, making it a fraction of the price of a traditional MBA. An average UK MBA is around £30,000; at top business schools such as Harvard costs are in excess of £60,000. “Higher education is in a bubble in which a staggering $2.3tn is invested every year in something that works for a small minority of people,” said Roei Deutsch, chief executive of Jolt. “Data shows more than three quarters of graduates believe many higher education programs are no longer fit for purpose.” “Society is clearly ready for an alternative — an alternative that will happen, with or without us.” Jolt, founded in 2015, is not the only MBA alternative to have emerged. Founders Academy, backed by the Founders Forum in London, has just started its alternative MBA course, a completely free nine-month programme that trains people to be managers of startup and scaleup businesses. Alternative education providers such as Coursera, Lambda School and Make School all attracted big funding rounds in the US last year. Applications to traditional business schools, meanwhile, have been declining for the last five years. Khemarint Son, treasury analyst at Starling Bank who did the Jolt course, said: “I considered doing an MBA, however, costs and time were the biggest factor in deciding not to go down that route. I was attracted to Jolt as they had classes that I felt could help make an impact on my career immediately.” Son said he also liked being taught by people who had current business experience. “The Jolters looked like cool people coming straight from the industry with real-life experience and not just academic background.” Jolt has trained more than 5,000 students since 2017. Preliminary evidence collected by the company suggests that students who take the course for at least three months are promoted to more senior positions faster than students taking conventional MBAs. So far Jolt has three campuses in London as well as seven in Israel and is planning an expansion into the US. The company, which has captured 10% off the Israeli business education market, is planning to open 25 new campuses across the three countries in 2020. The company has so far raised a total of $23.3m from investors. Want the best of Sifted in your inbox? Our newsletter brings you the latest, greatest stories on startup Europe. Sign up Terms of Use Related Articles Not everyone can become an entrepreneur in Europe By Marie Mawad in Paris Click here to read more Only 21% of tech unicorns are led by women, report shows By Freya Pratty Click here to read more Black entrepreneurs receive just 0.24% of capital in the UK By Freya Pratty Click here to read more Systemic barriers for minority business owners persist, report shows By Freya Pratty Click here to read more Get the best of Sifted in your inbox By entering your email you agree to Sifted’s Terms of Use Sign up to \Future Proof Sifted’s weekly \Corporate Innovation roundup email By entering your email you agree to Sifted’s Terms of Use Most Read 1 Member \Fintech Meet the TransferWise ‘mafia’: The employees turned entrepreneurs 2 Member \Corporate Innovation Exclusive: Barclays pulls plug on flagship payments app Pingit 3 \Startup Life Staff love working from home. Bosses… not so much 4 Member \Venture Capital Early investors in UiPath on track to make a 220,000% return 5 \Venture Capital Investors love data. So why not dig into sustainability metrics? Join the conversation Subscribe Notify of new follow-up comments new replies to my comments
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