Modern Labor and Leif will work together to increase access to affordable education through income share agreements, which allow students to cover tuition by agreeing to pay back a percentage of their future incomes.
Start-up Modern Labor, which pays individuals a living wage so they can learn digital skills, has received a $50 million financing agreement from Leif’s financing partners to boost its skills training programme.
The deal is one of the largest income share agreement financing commitments to an education provider.
New York-based Leif will manage of Modern Labor’s income share agreement programme.
Francis Larson, co-founder and chief executive of Modern Labor said: “We believe in our approach of paying people to learn in-demand skills and it’s clear the capital markets are starting to believe as well. We are one step closer to providing real educational access to everyone, not just the elite.”
His co-founder Oliver Birch continued: “We believe that by removing financial constraints and providing structured learning and project work, Modern Labor will enable many tens of thousands of people to become software developers.”
Modern Labor is based in San Francisco.