The startup Modal Learning Inc., which assists businesses in providing their employees with new technical abilities, has closed a $25 million early-stage fundraising round to bolster its expansion plans.

Left Lane Capital and Ensemble VC were the lead investors in the Series A round, the company revealed in its release today. Additionally involved were Learn Capital and Signalfire. With this investment, the company has received $32 million in outside finance overall.

Dennis Yang and Darren Shimkus, two former executives of Udemy Inc., created Modal in 2021. Udemy, an online learning platform that is listed on the Nasdaq, lets users become familiar with subjects including business, programming, and music creation. Before the company went public, Yang served as chief executive and Shimkus oversaw its employee training division.

A rival online learning platform, Modal, focuses more narrowly on assisting businesses in improving the technical abilities of their workforce. At the moment, six course sets are available. The other learning courses are devoted to data management and analytics, while one collection concentrates on generative artificial intelligence.

The difficulty of the courses varies. For instance, participants in Modal’s generative AI training program learn how to create prompts and carry out related activities that don’t always require knowledge of code. On the other hand, the company’s data science courses go over more advanced subjects including SQL query creation.

A built-in coding tool is available on the Modal platform for individuals enrolled in technical courses. A learner working on a programming assignment can use the tool’s features to organize the various versions of a code file they make. Furthermore, according to Modal, employees can get direct coaching through the interface.

The business markets its offering as a more affordable substitute for well-known staff training platforms.

Only a small percentage of employees at many businesses enroll in training programs that cover technical subjects like data science. However, Modal claims that these courses are frequently offered as part of a universal membership, or a subscription that provides learning materials to any employee in a department or organization. When the number of available user seats is not entirely utilized, such purchases may result in overspending.

Instead of offering its educational materials via a subscription service, Modal offers credits. Employers only deplete credits when staff members finish a course and the associated capstone project with success.

“Having been in the industry for two decades, I’ve seen how organizations spend their money offering subscriptions to all their employees, but only 2% to 3% of those employees would complete a course.” said Modal’s Shimkus. “At Modal, we only charge companies when employees actually graduate, demonstrating their new skills.”

According to Modal, their value offer has already earned over more than 100 clients, many of which are Fortune 1000 members. With the money round announced today, the company plans to expand its clientele, add staff members, and improve its platform.