Perlego, often described as the “Spotify for textbooks,” has successfully closed a $4.8 million (£3.7m) venture round. The round was led by ADV, with contributions from existing angel investors, including prominent figures such as Lovefilm co-founder Simon Franks, Peter Hinssen, and Zoopla founder Alex Chesterman.
Founded by Gauthier Van Malderen and Matthew Davis, both 25 years old, Perlego provides unlimited access to hundreds of thousands of professional and academic eBook titles for a monthly fee of £12. The platform collaborates with leading publishers, including Oxford University Press, Princeton University Press, and Macmillan Higher Education, who receive 65 per cent of each subscription on a consumption basis.
Additionally, Perlego has recently formed a partnership with Cengage Learning, one of the world’s largest textbook publishers. The infusion of funds aims to expand the team and support the company’s growth across the UK and Europe, while also enhancing its product offerings for students and professionals. Co-founder and CEO Gauthier Van Malderen articulated the company’s mission, stating, “Our mission is to make educational content accessible for all. In this digital age, we believe that anyone should be able to learn anything at any time. Knowledge should be more accessible, not locked behind sky-high price tags and tuition fees. We are delighted to have raised from such forward-thinking investors, to help us build the world’s online learning library.”
The subscription model for textbooks appears to be a timely innovation, considering that textbook prices have risen 847 per cent since 1972, a rate that significantly outpaces inflation. Van Malderen asserted that this model makes sense, given the broken ownership model for textbooks. He also highlighted the advantages for publishers who have been adversely affected by second-hand book sales and piracy.
ADV’s CIO, Mike Dimelow, commented on the shift towards digital content consumption, saying, “In the past, we all bought books but now we consume content digitally. Spotify has re-defined this consumption for music, Perlego will do the same for educational textbooks and professional learning. Its platform connects consumers to publishers and enables partial ownership, we feel this is a winning model. Consumers pay for what they read whilst publishers monetise content they commission.”
The company has already partnered with over 650 publishers, including 8 of the top 10 leading academic and professional publishers. This validation from the majority of the largest academic publishers and a growing user base has fortified Perlego’s business model as it continues to redefine the industry.
Perlego’s recent funding success and strategic partnerships signify a promising future for the platform as it continues to revolutionise the way educational content is accessed and consumed. The company’s focus on making knowledge more accessible aligns well with the evolving landscape of digital content consumption.