Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
ConnectEDU files for bankruptcy after Gates Foundation grant
Author: Joel R. Glucksman
Date: May 13, 2014
Key Contacts
Back
Citing an inability to repay its over 200 creditors, college and career planning startup ConnectEDU filed for protection under Chapter 11 of the bankruptcy law on April 28, according to Inside Higher Ed. The company offers planning and tracking tools to aid students looking for colleges and post-college jobs that match their interests and abilities.
In July, the startup received a $499,375 grant from the Bill & Melinda Gates Foundation to create a platform for students to work together to learn Common Core standards for literacy, according to the news source. ConnectEDU is the second education-related startup funded by the foundation to be struggling financially. Student data repository inBloom announced its plans to shut down last week after receiving millions in startup funds from the foundation.
In its bankruptcy filing, embedded by BontInno, ConnectEDU estimated assets between $1 million to $10 million, compared to liabilities of $10 million to $50 million. The company listed Maryland ed-tech VC firm New Market Education Partners as its largest creditor, holding $1 million of its debt. The New York Times Co. and AOL were also listed as creditors.
Workers at the company received letters on April 28 notifying them that they were due to be terminated as of 3 p.m. the same day, according to BostInno. One anonymous employee told the news source that up to 50 employees lost their jobs, including CEO Evan Nisonson. CFO Paul Sheppard supported this statement, telling the news source that Nisonson is no longer with the company, but that he has been asked to stay on.
In a release sent to BostInno the afternoon of April 29, ConnectEDU indicated that it intended to pursue sale and restructuring alternatives that would enable the CourseEval business to exit Chapter 11.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
ConnectEDU files for bankruptcy after Gates Foundation grant
Author: Joel R. Glucksman
Citing an inability to repay its over 200 creditors, college and career planning startup ConnectEDU filed for protection under Chapter 11 of the bankruptcy law on April 28, according to Inside Higher Ed. The company offers planning and tracking tools to aid students looking for colleges and post-college jobs that match their interests and abilities.
In July, the startup received a $499,375 grant from the Bill & Melinda Gates Foundation to create a platform for students to work together to learn Common Core standards for literacy, according to the news source. ConnectEDU is the second education-related startup funded by the foundation to be struggling financially. Student data repository inBloom announced its plans to shut down last week after receiving millions in startup funds from the foundation.
In its bankruptcy filing, embedded by BontInno, ConnectEDU estimated assets between $1 million to $10 million, compared to liabilities of $10 million to $50 million. The company listed Maryland ed-tech VC firm New Market Education Partners as its largest creditor, holding $1 million of its debt. The New York Times Co. and AOL were also listed as creditors.
Workers at the company received letters on April 28 notifying them that they were due to be terminated as of 3 p.m. the same day, according to BostInno. One anonymous employee told the news source that up to 50 employees lost their jobs, including CEO Evan Nisonson. CFO Paul Sheppard supported this statement, telling the news source that Nisonson is no longer with the company, but that he has been asked to stay on.
In a release sent to BostInno the afternoon of April 29, ConnectEDU indicated that it intended to pursue sale and restructuring alternatives that would enable the CourseEval business to exit Chapter 11.