Chegg.com Gets $57 Million for Online Textbook Rentals

Authored by Mark Hefflinger on November 20, 2009 - 8:06am.

Santa Clara, Calif. - Chegg.com, an online textbook rental company, said on Thursday that it has raised one of the largest funding rounds for a Silicon Valley tech company this year, landing $57 million in its fourth round.

Insight Venture Partners led the round, and also led a syndicate that provides the company with a $25 million credit facility.

That's on top of $30 in debt financing that the company recently landed from Pinnacle Ventures and TriplePoint Capital.

Chegg, whose service sometimes is referred to as Netflix for textbooks, said that it will use the proceeds to enhance customer service and forge more partnerships with publishers, wholesalers and colleges.

The company, which landed previous backing from Kleiner Perkins Caufield & Byers, Gabriel Venture Partners, Primera Capital and Foundation Capital, said that it expects to double its workforce.

Launched nationally in 2007, the company said that its service saves students 60%-75% off their textbook bills by renting instead of buying.

Related Links:
http://snipurl.com/tc14e

http://www.chegg.com