UK start-up Student Finance raises €1.15m to tackle university loans
Educational technology start-up Student Finance has raised €1.15 million in a seed funding round led by Seedcamp and Mustard Seed Impact.
The 2019-founded firm “is aiming to solve the skills gap” by “making education affordable and accessible through Income Share Agreements (ISAs),” says co-founder Mariano Kostelec.
Student Finance co-founder Mariano Kostelec
These ISAs mean Student Finance covers the cost of university tuition for students in return for a share of their future income, offering a third option which avoids paying back a loan or paying the fees upfront.
“We believe a pay-per-success model is much needed in the education space to ensure there is a focus on employment outcomes, while removing the financial barriers from accessing quality education,” he adds.
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The main difference between an ISA and a loan is that an ISA has a fixed percentage of your income over a set period of time, whereas the interest you pay back on a loan will change year to year.
The company says on its website that it contributes to the “education and mentorship of a girl in Africa” for every time it funds a student.
Other investors in the round include entrepreneurs José Neves, founder and CEO of luxury fashion platform Farfetch; Rolf Schroemgens, founder and CEO of trivago; Nuno Sebastiao, founder and CEO of Feedzai; Will Neale, founder of Grabyo and mobile payments firm Fonix Mobile; as well as Juan Urdiales and Felipe Navío, co-founders and co-CEOs of Jobandtalent.
European Innovation Council advisory board member Carlos Oliveira also participated in the round.
