NEW YORK — Credly, which operates a digital credential platform, has raised $4.6 million in new financing from investors including New Markets Venture Partners, University Ventures, Lumina Foundation, City & Guilds Group, and Lion Brothers. The new investment reflects a growing focus on credential technology or “credtech” among employers grappling with widening skills gaps, education institutions preparing learners with skills required by the modern labor market, and job seekers eager to digitally share verified evidence of what they know and what they can do.
Credly has raised more than $7 million to date.
“Credly is leading an international movement to address the growing skills gap and to credential relevant skills and competencies with portable, digital, and verifiable records,” said Mark Grovic, General Partner at New Markets Venture Partners, which led the recent financing round. “Credly enables an interoperable currency of skills that better connects a diverse workforce with employment opportunities based on demonstrated abilities.”
“Credtech has become a must-have solution for education and training providers as economic, social, and technological changes shift the way we seek, obtain, and communicate skills,” said Jonathan Finkelstein, founder and CEO of Credly. “Credly is building a currency for the skills-based labor market, and this investment accelerates our team’s progress toward empowering every individual with evidence of their achievements and helping organizations manage and showcase skills with more precision and better data.”
Increased adoption of credtech, technology that allows verified skills and credentials to be presented in a secure, portable manner, has been fueled in part by a growing focus on skills-based hiring practices designed to increase the size and diversity of talent pools, as well as efforts to better identify and anticipate skills gaps within organizations. Professional associations, colleges and universities, and training organizations are also tapping credtech to make it easier to identify and validate individuals’ skills learned on the job or in the classroom.
“Credtech is critical to connecting the pipeline between education and employment, and helping individuals turn their skills and competencies into currency they can leverage with employers globally,” said Ryan Craig, Managing Director at University Ventures. “Credtech can plug into several aspects of talent management, including recruitment, promotions, employee recognition, professional development, and more. We are continuously impressed by Credly’s innovative technology to serve these dynamic needs.”
Through a partnership with the American Council on Education (ACE)’s CREDIT program, major employers including Walt Disney, KFC, AmeriCorps, and Jiffy Lube are using the Credly platform to help employees obtain academic credit for on-the-job training and to take ownership of portable and secure digital credentials they can carry with them as they advance along professional pathways.
Credly also recently expanded its international operations in partnership with UK-based Digitalme, a City & Guilds Group business, helping individuals and employers in the EU demonstrate and manage talent. Under the new relationship, Digitalme will help organizations who enable skills development to design and implement achievement and recognition systems using digital credentials issued through Credly.