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GSV Capital is the first publicly traded security giving growth equity investors access to the world's most dynamic, VC-backed private companies.

More about GSV Capital
NASDAQ: GSVC
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Why We Like

$8.4 million NAV|3.8% of GSVC

Founded

2007

Capital Raised

IPO in 2013

Investors

GSV Capital along with Kleiner Perkins, Insight Venture Partners, Foundation Capital and others.

GSV Investment Theme

  • Cloud/Big Data
  • Marketplaces
  • Sustainability
  • Education

Overview

Chegg, the student hub, is transforming the way millions of students learn by connecting them to the people and tools needed to succeed throughout their high school and college career. Students nationwide use Chegg 365 days a year to make learning easier, more accessible and more productive. Since it launched nationally as a textbook rental company in 2007, Chegg has enhanced education for millions of students by saving them time, saving them money and helping them get smarter.

4Ps
Why We Like It: The Four Ps

Why We Like Chegg

Chegg has established a leading brand with college students by developing the leading textbook rental service. The Company is well-positioned to leverage its brand and relationships with college students to develop a very large and profitable business.

People

CEO Dan Rosensweig has a strong track record in growing emerging online and consumer technology businesses. He was previously CEO and President of Guitar Hero, COO of Yahoo!, and President of ZDNet.

Product

Chegg offers an array of required and non-required scholastic materials including millions of textbooks in any format, access to online homework help and textbook solutions, course organization and scheduling, as well as college and university matching tools and scholarship connections.

Potential

According to the National Retail Federation, college students spend about $10.5 billion annually on college-related expenses, 55% of which is spent on consumer goods and services, primarily travel, apparel, textbooks, and entertainment. Chegg’s opportunity is to capture a significant share of this market through its online student hub. By leveraging its relationships with students who have used Chegg’s textbook rental service, the Company can capture a greater share of student spending by offering a variety of products and services designed to help students succeed.

Megatrends

Knowledge; Internet; Brands; Demographics

How Big Can This Be?

Chegg has developed a large business in the textbook market and can grow significantly by offering additional products and services and by developing customer relationships with high school students who are preparing for college.

Predictability

With students in college for an average of nearly five years, Chegg can leverage customer acquisition costs over multi-year, multi-purchase period. Class note sharing, group learning, tutoring and related products and services represent recurring revenue opportunities for Chegg throughout a student’s academic life.

Risks

Seasonality of business, learner engagement, and maintaining high quality of the platform are key. Numerous competitors including publisher-supported joint ventures and emerging startups.

GSVC percentage figures are based upon the fair value of each holding as of the quarter ended September 30, 2016, or the cost basis of the holding (exclusive of transaction costs) if the investment closed subsequent to September 30, 2016. In either case, these values are divided by the fair value of total portfolio investments of GSV Capital as of September 30, 2016.

GSV stands forGlobal Silicon Valley
Learn more at GSV.com