Modal Learning Inc., a startup that helps enterprises equip their workers with new technical skills, has closed a $25 million early-stage funding round to support its growth efforts.

The company disclosed in its announcement of the Series A round today that Left Lane Capital and Ensemble VC were the lead investors. Signalfire and Learn Capital participated as well. The investment brings the company’s total outside funding to $32 million. 

Modal was founded in 2021 by former Udemy Inc. executives Darren Shimkus and Dennis Yang. Nasdaq-listed Udemy provides an online learning platform that helps users familiarize themselves with topics such as programming, marketing and music composition. Shimkus led its employee training business, while Yang was the company’s chief executive prior to its stock market debut.

Modal provides a competing online learning platform with a narrower focus on helping enterprises enhance their employees’ technical skills. It currently offers six sets of courses. One collection focuses on generative artificial intelligence, while the other learning tracks are dedicated to data management and analytics.

The courses vary in complexity. Modal’s generative AI training program, for example, teaches participants how to write prompts and perform related tasks that don’t necessarily require coding know-how. The company’s data science courses, in contrast, cover more technical topics such as SQL query development.

For users taking technical courses, Modal’s platform provides a built-in coding tool. The tool provides features for organizing the different versions of a code file that a learner creates while working on a programming assignment. Additionally, Modal says that workers can access guidance from coaches directly in the interface.

The company positions its service as a more cost-efficient alternative to established employee training platforms.

At many enterprises, only a limited number of workers sign up for training courses that focus on technical topics such as data science. But according to Modal, such courses are often sold under a universal subscription, or a subscription that gives all of an organization or department’s workforce access to learning content. Such purchases can lead to overspending when the available user seats are not fully used.

Modal doesn’t provide its learning content under a subscription model, but rather sells credits. Companies only use up credits when employees successfully complete a course and a capstone project at the end of the course. 

“Having been in the industry for two decades, I’ve seen how organizations spend their money offering subscriptions to all their employees, but only 2% to 3% of those employees would complete a course.” said Modal’s Shimkus. “At Modal, we only charge companies when employees actually graduate, demonstrating their new skills.”

Modal says that its value proposition has so far won over more than 100 customers, including many Fortune 1000 members. The company will use the funding round announced today to further grow its customer base, as well as hire more employees and enhance its platform.

Image: Modal