Three former Duolingo executives have launched Outsmart Education, a higher education startup that has raised $13 million in seed funding. Still, in stealth mode, the firm'[ aims to make education more affordable and accessible by addressing the major concerns of rising tuition and expanding student debt.
The funding round, led by Khosla Ventures, includes participation from Karman Ventures, Latitud Ventures, Lightspeed Ventures, and individual investors such as Lenny Ratchinsky, previously at Airbnb. According to the team, the capital will support hiring and product development as the company refines its approach to tackling these systemic issues.
Daniel Falabella, Gina Gotthilf, and Jorge Mazal are the co-founders, and they all played important roles in Duolingo’s growth. Mazal, who will serve as CEO, shared that the inspiration for Outsmart stemmed from his struggles financing his education in the U.S., leaving him with substantial debt. He called the experience emblematic of the broader issues plaguing higher education.
While the startup has yet to disclose its specific plans, Mazal emphasized its mission to expand access to education dramatically. Khosla Ventures partner Ethan Choi, a first-generation college graduate, expressed optimism about the venture, calling it “world-changing.”
Outsmart enters the scene as tuition costs continue to rise, with private college fees up 5.5% for the upcoming academic year and total U.S. student debt exceeding $1.6 trillion. Competing services, such as Tuition Tracker and College Rover, offer tools to navigate these challenges, but Outsmart hopes to go beyond by addressing affordability and personalization in higher education.
The founding team brings a wealth of experience from Duolingo and other tech giants like Dropbox, Tumblr, and Zynga. Mazal believes their combined expertise will position Outsmart as a transformative force in the education sector.
Outsmart arrives at a time when many families find it hard to pay for a college degree. For the 2024-2025 school year, the average tuition and fees at private-ranked colleges rose by around 5.5% over the previous year, whereas public schools saw a rise of over 2%. Overall, Americans owe approximately $1.6 trillion in student loans.
Since Outsmart is keeping the details of its offering under wraps, it remains to be seen how, or if, it fits into these existing categories. Regardless, the founders appear well-equipped to forge a path in the space. The trio worked at Duolingo for five years and have previously held positions at various other notable companies.
