Alchemy Code Lab, a Portland, Ore.-based provider of a student-friendly income share agreement (ISA), a new tuition funding option that allows students to pay their tuition only after securing employment post-graduation, raised $5.8m in funding.
Backers included impact investing nonprofit Social Finance through the Career Impact Bond.
Led by founder Marty Nelson, Alchemy Code Lab provides a student-friendly income share agreement (ISA), a new tuition funding option that allows students to pay their tuition only after securing employment post-graduation
Available now, students can apply for ISA funding once they are accepted to Alchemy’s software development training program. Students enroll with little to no upfront cost, and once they graduate and secure meaningful employment, they repay program costs as a fixed percentage of their income, capped at a set dollar amount and for a certain period of time. Repayment begins once they secure a role earning at least $50,000 in annual salary.
Alchemy Code Lab is a full-time, 25-week program designed to place students directly into mid-level software developer jobs. Its average starting salary for graduates is $80,000 per year. Tuition at Alchemy is currently $24,000 for the complete program. Alchemy also offers tuition assistance in the form of diversity scholarships and veteran benefits.
With the size of the investment, Alchemy also anticipates being able to offer the ISA to almost half of each cohort over the next three years.