MasterClass

MasterClass runs a subscription platform of pre-recorded video courses taught by recognized figures in their fields, covering writing, cooking, sport, music, film, business and other subjects. David Rogier started the company in October 2014 as Yanka Industries while a student at Stanford, with Aaron Rasmussen joining as co-founder and chief technology officer. The platform launched under the MasterClass name on May 12, 2015, with early classes from Serena Williams and Dustin Hoffman. The company is based in San Francisco and Rogier is chief executive.

After seed rounds of $4.5 million and $1.9 million, New Enterprise Associates led a $15 million Series B in February 2016. IVP led a $35 million Series C in 2017, joined by GSV Acceleration and returning investors NEA, Javelin Venture Partners, Bloomberg Beta and Advancit Capital, bringing total funding to $56.4 million. IVP also led an $80 million Series D in September 2018, with Javelin Ventures, NEA, Advancit Capital, Atomico and Evolution Media participating. Fidelity Investments led a $100 million Series E in May 2020. Fidelity led again in a $225 million Series F in May 2021, with Baillie Gifford, Eldridge, IVP and NEA participating, at a valuation of $2.75 billion.

At the Series F, CNBC reported the valuation was more than triple the June 2020 figure, that some pandemic weeks saw sales ten times the prior year, that an annual subscription cost $180 and that about one third of subscribers were outside the United States. Part of the money went to a business-to-business offering for employers and to classes in Spanish, French and German. In June 2022 the company cut about 20% of its roughly 600 staff, citing the worsening macroeconomic environment and a goal of reaching self-sustainability faster. MasterClass remains private and has not announced a funding round since 2021.

MasterClass shows how pandemic demand repriced consumer subscription companies. NEA entered at the 2016 Series B and IVP at the 2017 Series C, when total funding was under $60 million; Fidelity led the two pandemic-era rounds that took the valuation to $2.75 billion. Eleven years after launch the company has not gone public or been acquired, so no backer has a disclosed exit, and the 2022 layoffs signaled a shift from growth toward profitability.