Earlier this month, language-learning platform Duolingo raised $45M at a valuation of $470M in a growth round led by Google Capital. In other words, just 4 years after being founded Duolingo is valued at over 2.5-times the market capitalization of publicly-traded competitor Rosetta Stone (NYSE: RST, mkt cap: $184M).
As the chart below highlights, Arlington, Virginia-based Rosetta Stone has seen its stock price wane since its public offering in 2009, in part because of newer language-learning startups that have undercut it on price. We did a deep dive into the new crop of language-learning apps attacking Rosetta in a February 2014 post, “Disrupting Rosetta Stone?“
Duolingo, which is backed by venture-capital investors including Union Square Ventures, NEA and Kleiner Perkins Caufield & Byers, now has $83.3M in total funding. The company’s new round is the latest in a wave of investment to education-technology startups over the last few years. Since 2010, Ed Tech startups have raised a whopping $5.1B.
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