NextStep Interactive Secures $3M Funding Led by SEI Ventures to Expand Healthcare Worker Training Platform

Recently, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that NextStep Interactive, based in Seattle, Washington, announced it had secured $3 million in financing, led by investors in the education sector.

NextStep Interactive is a caregiver training organization aimed at helping unemployed workers. The investors in this round include SEI Ventures, JAZZ Venture Partners, Learn Capital’s LearnStart fund, Springrock Ventures, City Light Capital, Frontier Angels, and Pioneer Square Labs, among others. NextStep is a subsidiary of the Seattle-based startup studio Pioneer Square Labs. The company previously announced in the fall of 2018 that it had raised $32.75 million in a funding round led by JAZZ Venture Partners.

As the U.S. population ages, healthcare jobs are growing significantly faster than the overall economy. According to data from the Bureau of Labor Statistics, six out of ten of the fastest-growing occupations in the United States are in the healthcare sector, with positions such as home health aides projected to increase by 41% by 2026. However, a 2016 study found that the supply of healthcare workers may fail to meet anticipated market demand.

Chris Hedrick, CEO of NextStep Interactive, stated, “Workers displaced by technology represent an untapped talent pool in the healthcare industry. The sector continues to face severe labor shortages, unable to fill critical vacancies for roles such as Certified Nursing Assistants (CNAs), Home Health Aides, and Community Health Workers. We are demonstrating that a new training model that respects the time and capabilities of unemployed workers, combined with job placement services, can unlock individual potential with the same flexibility seen in the innovation economy.”

NextStep enables employers to screen talent based on demonstrated competencies and soft skills. By delivering training in 10–15-minute modules via mobile devices, NextStep retrains unemployed workers with low-wage experience in the service and hospitality sectors for higher-paying roles with greater advancement potential in the healthcare industry. Workers not only receive training but also benefit from industry-recognized certifications and automated job placement services.

Terry McDonough, Managing Director at SEI Ventures, stated, “By combining new forms of assessment with targeted learning experiences, NextStep paves the way for disadvantaged employees to achieve faster skill development and access better opportunities. This investment reflects our desire to support companies that not only narrow skill and equity gaps but also drive high returns on educational investments.”

Chris Hedrick, CEO of NextStep Interactive, is a seasoned entrepreneur who has served as CEO of the venture capital firm Intrepid Learning, as Science and Technology Advisor to Washington State Governor Gary Locke, and as Country Director of the Peace Corps in Senegal. In Rwanda, he developed and led Kepler, a higher education initiative (a predecessor program of the Bill & Melinda Gates Foundation), and was the first employee of the Gates Library Foundation. The Gates Library Foundation was established as a result of Chris Hedrick’s work managing corporate philanthropy programs at Microsoft.

NextStep Interactive is a caregiving agency that provides training and job placement for its employees. Currently, NextStep Interactive is developing next-generation technology and learning solutions to meet the needs of the healthcare industry. NextStep operates caregiving services in Seattle, Washington, and Bozeman.

SEI Ventures is a corporate-backed fund launched by Strategic Education, Inc. to invest in innovative startups and help them realize their full potential. This investment goes beyond mere financial support; when partnering with a startup, both parties commit to working together to drive the company’s growth. Innovative entrepreneurial ventures can pilot their products within SEI Ventures’ degree programs and among its community of over 80,000 learners. The professional expertise of Strategic Education, Inc.’s senior leadership has helped many founders refine their products, accelerate their go-to-market strategies, and scale their businesses.

(Compiled by Xu Wenjuan)