ACT, an Iowa-based nonprofit best known for its standardized college-readiness exam, made the investment in New Markets Venture Partners as part of ACT’s mission to improve education and career readiness.
“There is an urgent need for investments into new educational models with proven efficacy that address the nation’s achievement and skills gaps,” says Mark Grovic, New Markets’ co-founder and general partner.
New Markets previously raised $30 million towards its $75 million goal. The fund aims to invest $1 million to $5 million in K-12 education startups and workforce development; it has made more than a half dozen investments so far.
The most recent, SignalVine, is a text messaging platform used in higher education institutions. ACT will work with New Markets to identify education startups to invest in.