On Friday, November 13th (yes, wall street works on that day as well), Instructure, maker of the popular LMS Canvas, officially became a public company. Their initial public offering raised about $70 million USD for the company, giving it a sizable war chest going forward to continue to capture market share. This IPO comes after raising around $80 million USD from private investors.
One of the more important notes on this IPO is that the company is still not profitable. According to their S1 Filing, while the company had revenues of over $44 million USD in 2014, it has a lost of $41 million USD.
However, the company sees the IPO as part of its long term vision. As reported by Edsurge, Josh Coates, Instructure’s CEO said:
From the founding of the company, we wanted to be an independent company, one that was capable of being a public company… There’s an enormous scrutiny that happens before a company becomes a public company…[Clean finances, strong security, a path to profitability—those are just the table stakes for going public]… That’s what we wanted at Instructure. We wanted to be a long-term, independent force.
According to Schoology, this is the first IPO of an education LMS company since Blackboard in 2004.
Have you used Canvas? How does it compare to Moodle? Give us your comments below!