BloomTech

Overview

BloomTech, also known as Bloom Institute of Technology, is a for-profit online coding bootcamp that offers training in fields such as web development, data science, and backend engineering. Originally launched in 2017 under the name Lambda School, it operates out of San Francisco, California. It was co-founded by Austen Allred and has gained attention for its innovative financing models, particularly income share agreements (ISA). As of recent reports, the company boasts of having assisted over 4,000 learners to secure tech jobs. BloomTech has raised significant venture capital funding from prominent investors like Y Combinator and Gigafund.

Recent Developments

April 2024: BloomTech was fined by the U.S. Consumer Financial Protection Bureau (CFPB) for deceptive practices related to its financing products. The company allegedly misled students about loan costs and falsely reported job placement rates. As part of the settlement, BloomTech and its CEO, Austen Allred, have been banned from participating in consumer lending activities for specified terms and are required to cease collection of specific loan repayments.
March 2024: BloomTech completed a Series C funding round, raising $14.6 million to continue its focus on tech training programs.
2023: A class-action lawsuit was filed against BloomTech by former students, alleging misrepresentation of employment outcomes and earnings, as well as complaints about the school's licensing status.
Partnership Initiatives: BloomTech has ventured into partnerships, including one with Amazon to refine and enhance their curriculum for backend development, allowing their graduates access to roles without needing a conventional CS degree.

Attribute	Information
Founding Date	2017
Headquarters	San Francisco, CA
Founders	Austen Allred
Revenue	$18.6 million (2024)
Key Investors	Y Combinator, Gigafund
Industry	Education Technology
Number of Employees	312

Early History

BloomTech began its journey as Lambda School, launched by Austen Allred in Pleasanton, CA, in 2017. With a vision to disrupt traditional education, Allred introduced a model where students could finance their education through income share agreements (ISAs), paying a percentage of their income once they secured a qualifying job. Originally aimed at making tech education more accessible, Lambda gained early fame due to its unique approach. It rebranded to BloomTech in 2022 following a trademark dispute with Lambda Labs. Throughout this period, BloomTech expanded its offerings, focusing on web development, data science, and gaining accreditation growth to cement its position in the burgeoning bootcamp market.

Company Profile and Achievements

BloomTech operates as an online coding bootcamp offering flexible, accessible, and outcomes-focused tech education. Major achievements and initiatives include:

Income Share Agreements: BloomTech's ISA model, which was a trailblazer in educational financing, allowed students to defer tuition costs until after gaining employment.
Curriculum and Partnerships: BloomTech developed its curriculum in collaboration with tech giants like Amazon, ensuring graduates have the skills needed for demanding roles.
Job Placement and Success: BloomTech claims a significant job placement rate for graduates within six to nine months of program completion, though these claims have been challenged.
Apprenticeship Programs: Incorporating practical lab phases, BloomTech offers apprenticeships wherein students work temporarily for BloomTech as part of their training, preparing them for real-world environments.

Current Operations and Market Position

BloomTech, formerly Lambda School, has maintained a significant presence in the coding bootcamp industry despite challenges regarding advertising accuracy and internal practices. Continually updating its financing models and curriculum, the school strives to be adaptable and aligned with current tech industry needs. While facing scrutiny, its focus on income mobility for learners marks a competitive advantage in offering low-risk educational paths.

Despite a tumultuous journey marked by legal challenges and criticism, BloomTech's commitment to adapting its business model positions it as an ongoing player within the education technology sector.

Conclusion

Overall, BloomTech has played a significant role in transforming tech education through innovative financing and partnerships with industry leaders. While recent legal challenges have cast a shadow over its operations and claims, BloomTech's core mission of making tech education accessible remains vital in an ever-evolving job market. Moving forward, its ability to overcome reputational challenges while refining its education and business strategies will be crucial in maintaining its industry relevance and potential growth.