Coursera is a multichannel distributor of online learning content to learners and organizations worldwide. Partnering with more than 300 universities, Coursera was founded by two Stanford professors who identified the global reach of learning content and have since built a business model around the needs of the consumer – the learner.
One of the recent biggest drivers of the business has been the pandemic and its lasting effects.
“People were stuck at home, so bored they even ‘did’ education. That horrified me at the time because it’s not a sustainable business model. And yet, that’s what is driving demand,” says Hahn.
As jobs adopted remote and hybrid models, with changing working requirements, many have responded by reskilling or upskilling.
Micro credentials are the new normal
“One of the things we’re seeing with this rate of change is the breakdown or disaggregation of the unity of learning,” claims Hahm. “Most people used to experience education in the same way. They would finish school and then go to college to study a monolithic, four-year degree,” he continues.
Traditionally, many would enter the workforce and education would be a thing of the past. But this is changing. Instead people are continuing to learn, or re-skill, throughout their careers.
“Now we’re seeing the beginning of a longer-term trend where people are taking career breaks to study – big chunks of education and ongoing training throughout their lives,” says Hahm. This trend of later education could be, in part, a response to an increasingly competitive job market.
In that sense, Coursera’s job-ready, packaged offerings have become increasingly popular, designed to increase expertise in a subject. “You don’t need a college – or even high-school education. But if you pass this course, you can become industry-certified,” explains Hahn.
Being immediately job-relevant after education can be hugely advantageous for those in the labor market. A Coursera entry-level certificate is comparable to a college semester and can help users secure jobs between $60,000 and $90,000.
The power of AI will enhance the learning experience
Coursera Coach is an AI bot currently in beta. The AI acts as an assistant, pointing out useful information and relevant data throughout the course. It is designed to make the learner feel like they’re sitting next to a dedicated tutor. The interactive nature of Coursera Coach aims to add significant value to the learning experience.
“Taking existing content and making it more valuable facilitates better learning,” explains Hahn. “It’s about going to the next step and having a deeper level of understanding. When people get more out of the experience, it’s going to create tremendous value in the long term,” he continues.
Another recent innovation is AI for course building. “Course Builder allows users to structure their own course, borrowing content from across a range of subjects, publishers, and partners,” says Hahn. “Developing a course within a specific timeframe and covering particular topics, all automated, is incredibly powerful.”
Strategic flexibility is key in a changeable market
In the world of capital markets, particularly considering today’s disruption and volatility, optionality around cash can be an enormous advantage.
“We went into our IPO with our eyes wide open – raising a lot of capital became very important over time,” says Hahn.
While being adaptable was important, for Coursera the biggest requirement of going public was keeping abreast of the competition.
“The big focus for us was reevaluating where we stood versus industry competition, and how it affected our strategy,” argues Hahn. He dubs it a “play-in-replay” model. “Being honest with investors, communicating when you’re doing well and when you’re not, is best because they will oftentimes provide useful and actionable feedback.”
Investors are stakeholders concerned with driving future growth. “It’s important to remember that investors are the people you will be spending time with as you release results over time,” says Hahn. “So, being acutely aware of how you’re performing, and communicating this to stakeholders, is key.”
Marrying purpose with profit
Making governance decisions that meet high standards of social and environmental performance, accountability and transparency, is a meaningful and fundamental part of Coursera’s business model.
“We were one of the first companies to go public as a B Corp,” says Hahn. “While for-profit companies would be swift in discontinuing an unpaid service, despite any financial hardship, B Corps think in a different way.
“Think about what a university is doing in countries that might not be as financially stable as others but have a population that needs to be educated…in those places, we’ve distributed free licenses,” says Hahn.
Coursera also works with nonprofits, offering discounted rates, aiming to enable those from a range of socioeconomic backgrounds to benefit from the learning services available.
“Doing good can naturally help the business,” says Hahn.
The founders had originally considered launching Coursera as a nonprofit but chose not to. “We never would be able to expand as quickly as in a for-profit fashion,” says Hahn. “At the end of the day, we’re a growth company – investors will get paid if the business grows and is profitable.
“But if what Coursera does at its basic level is good for the world, then you can succeed as an economic beast and serve the world better – both at the same time.”
Featured Guest:
Ken Hahn
CFO, Coursera