Dear Friends and Colleagues,
We are thrilled to share an exciting update regarding one of our portfolio companies, EdCast.
BUILDING TECHNOLOGY THAT ENABLES A CULTURE OF LEARNING
Cornerstone OnDemand, a leading developer of cloud-based talent management software solutions, completed the acquisition of EdCast. Since its founding, EdCast has been one of the premier learning experience platforms (“LXP”). The company’s award-winning technology platform powers a contemporary skilling experience for working learners. As a result, global Fortune 2000 corporations and government organizations have leveraged the platform to help their employees reach their full potential by providing content, learning, and knowledge they need, when they need it, and in the flow of work.
Avathon led and invested in EdCast’s $35M Series D financing round in November 2019. You can read our initial investment perspective here. Since that time, EdCast has generated significant growth. The company expanded its go-to-market infrastructure, more than doubled its enterprise partnerships, and launched a host of cutting-edge product functionalities. Today, the platform serves tens of millions of users around the world.
We’re confident that the merger of EdCast and Cornerstone will not only enhance the growth opportunities and capabilities of each company, it will also unlock new avenues that allow corporations, governments, and employees to navigate the future of work. It has been exciting to witness Karl Mehta and his team navigate a quickly evolving market with a customer-first mindset, grit, and empathy. We know they will continue to drive innovation and impact in partnership with Cornerstone and Clearlake Capital.
In that spirit, we elected to take some of our consideration in stock in Cornerstone and are excited to extend our ownership period in the leading talent management software provider in the market today.
EdCast was Avathon’s eighth platform investment and fourth sale event. This follows last year’s announcement of the sale of Reading Plus, a research-based software reading intervention and practice company for students in grades 3 – 12 to DreamBox Learning.
The Avathon Capital Team