Crimson Education has been valued at NZ$1 billion (US$600 million) - but could its core business, getting kids into Ivy league, be destroyed by AI?
Crimson Education – a unicorn company valued at $1 billion – has been in expansion mode, putting it on the path to cross $1 billion in sales since inception.
The business, which at its core helps students navigate the admissions process for Ivy League educational institutions in the United States,has turned over $927 million (US$551m) in sales since it began in 2013.
About one third of that, $300m, was earned in the past 12 months.
“Today, Crimson is the largest provider of college admissions guidance for American kids getting into US colleges, which I think is pretty funny because they trust, of course, Kiwis to get into their own schools,” co-founder and chief executive Jamie Beaton told Markets with Madison in New York, where he lives and runs the global company.
It operates in 20 countries and has more than 10 companies under its umbrella, including an online and physical school, an investment acceleration fund, tutoring and immigration services.
“We’ve really tried to expand from this 16-to-18 [year-old], New Zealand to US corridor, to [a] much more global, 5 [years old] to early professionals learning eco-system.”
Beaton co-founded Crimson with Sharndre Kushor and Fangzhou Jiang.
It was recently valued at $1b and has raised $150m in capital, including from institutional investor Verlinvest and hedge fund Tiger Global Management.
In this episode of Markets with Madison, Beaton discusses how artificial intelligence and the US political administration may affect higher education – and potentially, his business.
Madison Malone travelled to the United States with support from the NZUS Council Media Fellowship programme. The council is committed to advancing New Zealand’s shared interests with the United States. Find out more about the NZUS Council here.
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Disclaimer: The information provided in this programme is of a general nature and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.
Madison Malone (nee Reidy) is host and executive producer of the investment show Markets with Madison. She joined the Herald in 2022 after working in investment and has covered business and economics for television and radio broadcasters.
