2tor Raises $20 Million Series B To Go After The High End Of Online Education

Every year as broadband reaches more people, online education keeps growing and growing. So far, though, most online education focusses on vocational courses, test preparation, or supplemental tutoring. One startup trying to bring entire degree programs online is 2tor, which just closed a $20 million Series B funding at a rumored valuation of around $100 million. Highland Capital Partners led the round, with previous investors Redpoint, Novak Biddle, and City Light Capital participating. Last June, the company raised $10 million in a Series A. "What is unique about 2tor is they are the first online education program to go after the high endâ€"elite programs at elite schools," says Paul Maeder, a founder and general partner at Highland who will be taking a board seat. 2tor was founded by John Katzman, who previously founded test-prep giant Princeton Review. Originally, he wanted to start 2tor as a division of the Princeton Review, but it goes after such a different part of the education market that he decided to pursue it as a standalone startup instead. In partnership with universities and graduate programs, 2tor designs and produces fully-accredited online degree programs, and even recruits the students as well.