Impact Investment Fund Completes Sale of Educational Video Pioneer, Panopto

CHICAGO, April 27, 2021 /PRNewswire/ -- Avathon Capital today announced the sale of Panopto, whose innovative technology powers the video libraries of universities around the globe as well as some of the world's largest companies. Originally the product of a Carnegie Mellon research project, Panopto's applicability and adoption have expanded considerably since its founding, supporting a wide range of use cases. The company's product allows instructors to "flip the classroom" — recording their lecture for students to watch online before attending class, thereby using valuable classroom time for discussion as a means to improve the learner experience and ultimately drive better outcomes. The company was acquired by K1 Investment Management, a California-based firm focused on high-growth enterprise software companies.

"Five years ago, Avathon saw us as we saw ourselves: a promising technology company with a huge opportunity in education and the workplace. They stood out as great capital partners in their ability to help us improve our business strategies while giving us the flexibility to learn, explore, and innovate," said Panopto CEO Eric Burns. "They kept us focused on our mission to help anyone share knowledge using video, and together we created both positive social impact and tremendous growth. Avathon understands that these are two sides of the same coin."

Since Avathon's initial investment, Panopto increased its customer base from 650 to over 1,000 institutions of higher education (over 1,200 total customers) and approximately tripled its annual recurring revenue.

Panopto was Avathon's second platform investment, and second exit of an impact investment. In 2018, the fund announced its sale of the National Research Center for College & University Admissions to the nonprofit ACT. The firm's portfolio now includes nine companies across the education and workforce management markets, with an emphasis on businesses offering technology and tech-enabled solutions for learners and workers.

"Our work is rooted in the thesis that providing mission-driven capital to education and workforce businesses can generate both financial returns and positive outcomes for learners and education providers," said Jason Rosenberg, managing director at Avathon. "From day one, we had the conviction that Panopto's solution would be embraced by not just faculty, but institutional leaders focused on improving learning, success, and persistence. Panopto's growth is a testament to not just broader trends towards digital learning but also their team's creativity and responsiveness to the needs of educational institutions and corporations during a time of ongoing turmoil and uncertainty."

About Avathon Capital
Avathon Capital is an investment platform with over $400 million of assets under management that is committed to fostering innovation and impact in the education and workforce management markets. Avathon's principals are curious, creative, determined, and thoughtful investors. They show up prepared and ready to turn their relationships and experience into a competitive advantage for their partners.

Avathon selectively targets opportunities where it can invest $10 to $50 million of equity capital and take a meaningful ownership position in companies with the potential to become enduring and strategically important businesses in their market. Avathon, headquartered in Chicago, traces its roots to Sterling Partners, which had a 30-year history as operators and investors in the education sector. For more information visit: www.avathoncapital.com.

About Panopto
Panopto helps businesses and universities create searchable video libraries of their institutional knowledge. Since 2007, the company has been a pioneer in video capture software, video content management systems, and inside-video search technology. Today, Panopto's video platform is the largest repository of expert learning videos in the world. Headquartered in Seattle with offices in Pittsburgh, London, Hong Kong, Beijing, and Sydney, Panopto has received industry recognition for its innovation, rapid growth, and company culture. For more information, visit www.panopto.com.

SOURCE Avathon Capital