A few weeks ago, TeachStreet founder Dave Schappell had the unpleasant task of laying off a portion of the company's workforce. But at the time of that cut, he also alluded to an upcoming funding round. Now, the former Amazon.com manager is making it official, announcing that he has raised an additional $1.2 million from existing investors and the management team.
TeachStreet, which laid off about 30 percent of its full time and contractor staff earlier this month, said it will use the new money for market expansion and penetration.
"The financing round is a huge positive, but it makes me feel a little bad saying that for the people who have left because for them in the short-term it is not a huge positive," Schappell told TechFlash at the time of the layoff earlier this month. "But we think it gives us the best chance of being successful over the medium to long-term, the one to five year time frame."
Schappell is announcing the new funding at the WTIA's Fast Pitch Forum and Technology Showcase in Seattle, an event in which more than 20 startup companies are showing off their products. (I will be reporting from the event Wednesday, so make sure to tune into TechFlash or my Twitter page for updates.)
TeachStreet operates a massive directory of music, language and other teachers, allowing people who are interested in learning a hobby or skill an easy way to connect with those instructors.
The company, which already operates service in Seattle, Portland, Chicago, Denver, San Francisco and New York, plans to expand to Schappell's home town of Philadelphia in the coming weeks. It also is working on developing new tools to help instructors connect with students, including an online payment system.
TeachStreet is backed by Madrona Venture Group and others.
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