Coursera

Coursera Inc.
	File:Coursera logo.svg Coursera logo
Company type	Public Benefit Corporation
Industry	Online education
Founded	2012; 14 years ago
Founder	Andrew Ng, Daphne Koller
Headquarters	Mountain View, California, United States
Area served	Worldwide
Key people	Jeff Maggioncalda (CEO)
Products	Massive open online courses, professional certificates, degree programs
Website	www.coursera.org

Coursera Inc. () is a multinational American provider of massive open online courses, established in 2012 by Stanford University computer science professors Andrew Ng and Daphne Koller. The platform collaborates with academic institutions and organizations to offer online courses, professional certifications, and degree programs spanning a wide array of disciplines.

On February 2, 2021, Coursera earned the B Corporation certification from B Lab and converted to a Public Benefit Corporation, underscoring its dedication to generating positive social impact.

By 2023, more than 300 universities and corporations were delivering courses through Coursera, with its offerings expanding to nearly 7,000 courses by 2024.

History

Established in 2012 by Stanford computer science professors Andrew Ng and Daphne Koller, Coursera began by providing their Stanford courses online in late 2011 before the founders left the university to launch the company. Initial collaborators included Princeton University, Stanford University, the University of Michigan, and the University of Pennsylvania.

In 2014, Coursera received the Webby Award for Education, acknowledging its pioneering role in online education platforms.

In March 2021, Coursera submitted paperwork for an IPO, disclosing revenue close to $293 million for the fiscal year ending December 31—a 59% increase compared to 2019. Despite revenue growth, net losses expanded to $66.8 million in 2020. The company allocated significant funds toward marketing efforts, investing $107 million that year to broaden its market presence and international reach.

Finances

Between 2019 and 2020, Coursera's revenue rose from $184 million to $294 million; however, net losses totaled $66 million due to intensified marketing expenditures. In the first quarter of 2021, revenue climbed to $88.4 million—a 64% rise year-over-year—with net losses amounting to $18.7 million ($13.4 million on a non-GAAP basis). Consumer segment revenue increased by 61% to $51.9 million; enterprise segment revenue grew by 63% reaching $24.5 million; and degree program revenue surged by 81% to $12 million.

By the third quarter of 2021, Coursera reported revenues of $109.9 million, marking a 33% increase from the prior year. Gross profit stood at $67.7 million, reflecting a margin of 61.6%, while net losses were $32.5 million, representing 29.5% of revenue. The company had not yet attained profitability.

Funding

Coursera's initial financing round raised $16 million from investors including Kleiner Perkins Caufield & Byers and New Enterprise Associates (NEA). In 2013, GSV led a $63 million Series B round, followed by NEA leading a Series C round exceeding $60 million in 2015. The Series D round in 2017 brought in $64 million at an $800 million valuation. The Series E funding round in 2019 generated $103 million from SEEK Group, Future Fund, and NEA, resulting in a valuation surpassing $1 billion.

In July 2020, Coursera obtained $130 million through Series F funding, lifting its valuation to around $2.5 billion. The company went public on March 31, 2021, pricing shares at $33 each and valuing Coursera near $4.3 billion. The IPO raised approximately $519 million via the sale of about 14.7 million common shares—including roughly 1.1 million shares sold by existing shareholders. Prior to the IPO, revenue for 2020 had increased by 59%, reaching nearly $294 million.

Business model

In September 2013, Coursera revealed it had generated $1 million in revenue from verified certificates that confirm course completion. That same year, the platform introduced paid course options featuring verified credentials. By October 2015, Coursera had secured $146.1 million through venture capital funding.

Starting January 2016, Coursera implemented fees for grading and assessments within most Specializations, while offering financial aid to qualifying learners. In July 2016, the company launched Coursera for Business, aiming at the high-value corporate e-learning sector in the United States, which was estimated at $12 billion. Notable clients include L'Oréal, Boston Consulting Group, and Axis Bank. By October 2016, Coursera shifted to a subscription model for Specializations, charging monthly fees that varied depending on the subject matter.

In January 2017, Coursera for Governments & Nonprofits was introduced, establishing collaborations with organizations like the Institute for Veterans & Military Families and governments in countries such as Egypt, Mongolia, Singapore, Malaysia, Pakistan, and Kazakhstan. Jeff Maggioncalda took over as CEO in June 2017, bringing leadership experience from managing a publicly traded company.

By March 2018, Coursera expanded its offerings to include fully online degree programs granting bachelor's and master's degrees across multiple disciplines.

As of 2020, less than 10% of learners pay for courses; the majority access free content. Around 60% of students enrolled in degree programs initially engage with free courses. Coursera functions as a "managed marketplace," curating course selections, enforcing quality standards, and regulating pricing. Revenue distribution awards universities 60% of income from degree programs and splits earnings evenly with instructors for certificate courses in technology and business fields.

Strategic partners

By December 2019, Coursera had established partnerships with over 200 organizations spanning 29 countries, predominantly working with universities, colleges, corporations, and government bodies. Prominent academic collaborators include the University of São Paulo (Brazil), University of London (UK), Indian School of Business, Yonsei University (South Korea), Ajman University (UAE), Yale University, University of Illinois, and University of Pennsylvania. A significant milestone was Google's launch of a Professional Certification program on Coursera that recognizes its certificates as equivalent to a four-year college degree. This development has strengthened Coursera's position and accelerated growth in professional education markets.

Courses

Courses on Coursera generally last between four and twelve weeks and involve one to two hours of video lectures weekly. They incorporate quizzes, peer-reviewed assignments, optional Honors components, and occasionally final projects or examinations. On-demand courses allow learners to progress at their own pace; by May 2015, there were 104 such offerings available. Additionally, guided projects offer brief practical experiences lasting two to three hours.

According to the 'Coursera Impact Report 2020', the platform's five most popular courses cover contact tracing, digital marketing, project management, Python programming, and social psychology. Specializations from DeepLearning.AI—founded by Andrew Ng—including the AI for Good Specialization have attracted considerable media attention.

Degrees

Since 2017, Coursera has broadened its offerings to include complete master's degree programs. Early options featured a Master’s in Innovation and Entrepreneurship (MSIE) from HEC Paris and a Master of Accounting (iMSA) from the University of Illinois. Currently, the platform provides a Master of Computer Science in Data Science and an MBA (iMBA) through the University of Illinois. Additionally, standalone MBA-related courses, such as those focusing on digital marketing, are available. More recently, Coursera incorporated a Master of Science in Cyber Security from the University of London and introduced a Bachelor of Science in Marketing to its catalog.

Professional certificate

Top industry leaders like Google, IBM, and Meta have launched professional certificate programs aimed at meeting workforce demands in fields such as data analytics, IT support, digital marketing, UX design, project management, and data science. Google alone offers upwards of 1,172 courses on Coursera, covering areas including Generative AI, Cybersecurity, and E-commerce, with more than 100,000 scholarships granted. These certificates hold recognition from Google and over 20 partners as comparable to four-year degrees, thereby boosting career prospects and skill acquisition.

Pricing and Fees

Coursera’s pricing structure can be intricate. As of 2023, learners can audit more than 2,900 courses free of charge; however, this option does not include certificates, grades, or instructor feedback. Upgrading to paid versions grants access to these additional features upon successful completion. Certain courses, projects, and specializations are exclusively available through paid enrollment, often beginning with a seven-day free trial period. This adaptable pricing approach caters to varied learner preferences while generating revenue via premium content.

Impact

In 2020, Coursera introduced "Science Matters: Let's Talk About COVID-19," developed in collaboration with the Jameel Institute at Imperial College London. It emerged as the platform’s most enrolled course that year, attracting over 130,000 participants. The curriculum featured contributions from prominent researchers such as Professor Helen Ward and Dr. Katharina Hauck alongside other experts from Imperial College.

Outreach and sponsorship programs

During the COVID-19 crisis, Coursera partnered with organizations to sponsor more than 115 certification courses aimed at assisting individuals impacted by unemployment, wage reductions, or career changes. This effort sought to improve workforce capabilities through accredited certifications and concluded on December 31, 2020. Nonetheless, numerous free courses remain accessible for audit without charge.

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