Coding Bootcamp Tag

The Future of Coding Bootcamps: How AI is Reshaping the Market

For years, coding bootcamps were seen as a golden ticket into the tech industry. They offered a quick path to marketable skills and lucrative careers. More than 100 of these programs popped up across the U.S., touted as a “no-frills alternative” to traditional college degrees.  However, the landscape is shifting dramatically, and the rise of artificial intelligence (AI) is forcing a fundamental reassessment of the bootcamp model.

The AI Disruption

The primary challenge facing coding bootcamps stems from the way AI is altering the tech job market itself. Tech companies are increasingly leveraging AI tools to automate tasks that were previously handled by entry-level human coders. This has led to what industry insiders now describe as “GPT monkey” roles – positions where employees primarily handle minor tasks while relying on ChatGPT, Gemini, and other AI tools for complex software writing.

This shift has created multiple headwinds for coding bootcamp providers:

Changing Employer Needs:  Employers are now seeking candidates with specialized tech skills, particularly in AI and machine learning, rather than general entry-level coding abilities.

AI as an Education Provider and Bootcamp Competitor:  Generative AI tools have proven to be excellent tutors and learning tools.  Many individuals consider them more accessible and a much lower-cost pathway to acquire basic coding skills, making the traditional bootcamp model less appealing.

Reduced Entry-Level Demand:  The automation of basic coding tasks using AI has significantly reduced the demand for entry-level tech employees, directly impacting the primary market that bootcamps serve.

2U’s Market Exit: A Telling Case Study

The struggles of 2U, a major player in the bootcamp market, is a perfect illustration of these headwinds. In 2019 2U acquired Trilogy Education for $750 million.  Trilogy is an education company that helps set up and run short-term coding programs at university extension schools.  Over the next several years, 2U partnered with 50 colleges and universities to set up and run their coding bootcamps.  However, in December 2024, 2U made what industry observers called a “bombshell announcement” to exit the bootcamp sector entirely.  It’s important to note that they didn’t sell their bootcamp business – they simply shut it down. This suggests their $750 million investment held little or no market value.

This decision followed a stark 23.3% revenue decline in 2U’s Alternative Credential Segment, driven largely by a 40% drop in bootcamp enrollment. As noted by education sector investment banker, Rich Jackim, the business line “was not worth selling, due to either a lack of buyer interest, or a realization that the market value that could be realized in a sale would not be worth the cost and effort to sell it, or possibly both.”

Instead of selling, 2U will write off their $750 million investment in Trilogy and pivot to offering other kinds of microcredentials through edX.org, which it bought for $800 million in 2021. 

The same situation has occurred to dozens of smaller coding bootcamps across the country, including CodeUp in Austin, TX, that was forced to close in January 2024 because enrollment slowed to the point where it could no longer cover its operating costs.  This highly respected bootcamp was forced to close in the middle of an investment banking process to sell the business.

The Reality on the Ground

The challenges extend beyond just market dynamics.  A telling example comes from an EdSurge podcast hosted by Jeff Young that interviewed, Tim Lum, a returning adult student who attempted the bootcamp route in Honolulu.  His experience highlighted common issues with the model: chaotic classroom environments due to widely varying skill levels among students, and the reality that many students essentially teach themselves using the bootcamp’s curriculum.  Lum ultimately decided that a traditional computer science degree was necessary to achieve his career goals, enrolling in a community college before transferring to a four-year university.

Market Implications and Future Opportunities

For boot camp owners and potential buyers, these developments have profound implications:

Reduced Business Value:  Traditional bootcamp businesses face significant downward pressure on valuations.

Fewer Buyers:  The lower enrollment numbers and existential risk from AI has already results in fewer buyers willing to enter the coding bootcamp sector.

Lower Value for Students:  The value proposition for students is weakening as AI tools provide alternative learning paths and entry-level coding positions become more automated.

Evolution Required:  Success in this coding bootcamp sector will require owners to make significant changes in the traditional bootcamp model.

However, opportunities exist for bootcamps that are willing to evolve:

Specialized Training:  Programs focusing on advanced skills in AI, machine learning, and emerging technologies that resist automation could find sustainable market niches.

Microcredential Integration:  Developing shorter, more focused programs that complement rather than replace traditional education might provide a viable path forward.  This could include programs that result in an industry recognize credential or certification, rather than a certificate of completion.

Industry Partnerships:  Closer integration with universities or tech companies could help create more valuable and recognized credentials.

Conclusion

The impact of AI on coding bootcamps marks a significant inflection point in the tech education market. While the traditional bootcamp model faces existential challenges, the underlying need for tech education remains strong – it’s the nature of that education that’s changing.  For investors and bootcamp owners, success will require carefully analyzing these market shifts and adapting to a landscape where specialized skills and AI literacy increasingly dominate the value proposition.

The days of coding bootcamps as a quick alternative to traditional education may be waning, but opportunities remain for those that are willing to evolve their offerings to meet the changing needs of employers and students.

If you are interested in our other articles about coding bootcamps, please read Coding Bootcamp Acquisitions: 2014 to 2022.

About the Author and Jackim Woods & Co.

Rich Jackim is an education industry investment banker, education industry entrepreneur, and former mergers and acquisitions attorney.

For the last 25 years, Rich has been providing boutique investment banking services to middle-market companies in the education sector.

Rich also founded a successful training and certification company called the Exit Planning Institute, which he sold to a private equity group in 2012.

Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses.

Jackim Woods & Co offers skilled mergers and acquisitions advisory services to privately owned schools, colleges, and EdTech companies in both sell-side and buy-side transactions.  Jackim Woods & Co has arranged over 100 successful transactions, ranging from less than one million to more than eighty million dollars in value.

If you own an education-related business and are interested in exploring your options, I would welcome an opportunity to speak with you.  Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.

Coding Bootcamp Acquisitions: 2014 to 2022

This article provides an overview of the publicly announced tech and coding bootcamp acquisitions since 2014.

This article includes the following sections

• Introduction
• Understanding the Bootcamp Market
• Valuing Coding & Cybersecurity Bootcamps
• 2022 Bootcamp Acquisitions
• 2021 Bootcamp Acquisitions
• 2020 Bootcamp Acquisitions
• Summary of Tech Bootcamp Acquisitions
• Notable Coding & Cybersecurity Bootcamp Acquisitions

Introduction

Since the first coding bootcamp acquisition in June 2014, we’ve seen dozens of coding bootcamps get acquired by a wide range of companies, from for-profit education companies (like Capella Education) to co-working companies (like WeWork) and other coding bootcamps (like Thinkful + Bloc)!

With rapid market growth in the bootcamp industry, other types of for-profit education companies are taking note, including traditional vocational schools and 4-year colleges and universities.

Many of these coding bootcamp acquisitions should come as no surprise. Some have been very successful, with the programs going on to significantly increase the number of physical locations and online course offerings.

In addition, as coding bootcamps mature, we are beginning to see bootcamps get acquired by well-known companies for increasingly large sums.  For example, General Assembly was acquired for $413 million, and Trilogy Education for $750 million!

As education industry specialists, Jackim Woods & Co maintains a list of bootcamps acquisitions to track who’s buying whom and how bootcamps and how edtech companies are valued.  As we were compiling the 2022 transactions, it occurred to us that others might be interested in this information as well, so we thought we’d share it with you.  We plan to update this list each year with publicly announced deals involving coding and cybersecurity bootcamps.

Understanding the Coding Bootcamp Market

If you are interested in learning more about the $2.3 billion tech bootcamp sector, please see our article Understanding the Tech Bootcamp Market.

Valuing Tech & Coding Bootcamps

If you’re interested in understanding how bootcamps are valued, please see our article How to Value a Bootcamp – Example and Multiples.

You might also enjoy reading our related article, How to Value an EdTech Company – Multiples & Example.

2022 Coding Bootcamp Acquisitions

2022 was a big year for tech boot camp dealmaking.

• 2022 started off with a bang when Skillsoft, an online course provider, acquired Codecademy in January for $525M.
• Then, in February, Centage Group acquired InfoSec, the leading provider of tech-related certification prep courses, for $190 million.
• The year also ended with two notable transactions when Digital Intelligence Systems acquired Grand Circus for an undisclosed amount, and Simplilearn (a Blackstone Group-backed company) acquired Fullstack Academy.  Fullstack Academy was estimated to be valued at $55 million.

2021 Coding Bootcamp Acquisitions

• ThriveDX (HackerU) acquired Cybint for a reported $50 million.
• Brainstation acquired Wyncode in January 2021
• SNHU acquired Kenzie Academy in March 2021.

2020 Coding Bootcamp Acquisitions 

• K12, the publicly traded online K-12 school and education management provider, paid $165 million in cash to buy Denver-based coding bootcamp Galvanize. For K12, the deal means adding more coding curricula for students in its Destinations Career Academies, which offers high school and career training program hybrids. For Galvanize—which is also Hack Reactor—the deal provides additional funding to grow its corporate learning business, add more physical locations, and increase its services to the military.
• K-12 acquired Tech Elevator for $24M
• Carrick Partners acquired Flatiron School from WeWork for an undisclosed amount.

Summary of Coding Bootcamp Acquisitions

The following is a summary of the publicly announced acquisitions of tech-related bootcamps since 2014.  Keep in mind that only large transactions are typically announced to the public.  We estimate that 75% of the bootcamp transactions each year are small and are not announced to the public.

 Notable Coding Bootcamp Acquisitions

The first reported acquisition of a coding bootcamp was Kaplan Test Prep’s purchase of Dev Bootcamp in June 2014. Although this was the first acquisition in the coding bootcamp industry, it wasn’t Kaplan’s first foray into coding bootcamps.  Kaplan launched its data science bootcamp Metis in early 2014. In 2017 Kaplan integrated Dev Bootcamp into Metis and retired the Dev Bootcamp brand.

Galvanize acquired Zipfian Academy in November 2014. Zipfian Academy was one of the first coding and networking bootcamps in the US. After one year of success, it was acquired by the Denver-based education & coworking powerhouse Galvanize.

ReactorCore acquired MakerSquare in January 2015. After ReactorCore was acquired by MakerSquare, ReactorCore’s first major move was to acquire Chicago-based mobile bootcamp Mobile Makers in September 2015.

The Iron Yard acquired Apollo Education as a “strategic investor” in July 2015. As of October 13, 2017, The Iron Yard is no longer operating.

Strategic Education, Inc. (SEI), the publicly traded holding company for Strayer Education, Inc., acquired New York Code & Design Academy in January 2016. New York Code & Design Academy is no longer operated as a separate brand.

Capella Education acquired Hackbright Academy in April 2016 and shortly afterward acquired DevMountain. Capella Education was later acquired by SEI.

WeWork acquired Flatiron School in October 2017, then in May 2018, WeWork also acquired MissionU.

A few months later, Flatiron School (now a part of WeWork) acquired the UX design bootcamp, Designation, and the cybersecurity bootcamp, SecureSet Academy.

After growing too quickly and facing financial challenges, WeWork sold off most of its assets, including selling Flatiron School to Carrick Partners in June 2020.

In a classic roll-up strategy, Thinkful began acquiring several of its smaller competitors to boost its value.  Starting in 2017, Thinkful acquired Viking Code School and The Odin Project. Then, in April 2018, they acquired Bloc.  When Thinkful reached its desired valuation, it sold to Chegg for $100 million.

Adecco, the large tech staffing company, acquired General Assembly in April 2018 for $413 million. According to Axios, General Assembly had been valued at $440 million. Between 2011-2015, General Assembly raised approximately $120 million in VC funding and earned $100 million in revenue in 2017.  That was the largest bootcamp deal at that time.

However, two years later, 2U acquired Trilogy Education in April 2019 for a record-breaking $750 million!

In early 2022, Centage Group acquired InfoSec, the leading provider of tech-related certification prep courses, for $179 million.

Toward the end of 2022, IT staffing provider Digital Intelligence Systems LLC (Disys) acquired Grand Circus, a virtual coding bootcamp provider that also connects talent to employers.

Outlook for Coding Bootcamp Acquisitions

Many industry analysts are pessimistic about the future of coding bootcamps because of the rapid advances in artificial intelligence and the ability of AI to write relatively sophisticated code.  We do not share that pessimism.  AI will still need talented coders to break projects down into the components that an AI can handle, then direct and instruct the AI about the project parameters, and finally review the AI’s work product and make necessary tweaks and adjustments.  So rather than reducing the demand for programmers, we expect the nature of the course to change and evolve as the technology sector changes and evolves.

About the Author and Jackim Woods & Co.

Rich Jackim is an education industry investment banker, educational industry entrepreneur, and former mergers and acquisitions attorney.

For the last 25 years, Rich has been providing boutique investment banking services to middle-market companies in the education sector.

Rich also founded a successful training and certification company called the Exit Planning Institute which he sold to a private equity group in 2012.

Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses.

Jackim Woods & Co offers skilled mergers and acquisitions advisory services to privately owned schools, colleges, and EdTech companies in both sell-side and buy-side transactions. Jackim Woods & Co has arranged over 100 successful transactions, ranging in value from less than one million to more than eighty million dollars.

If you own a tech boot camp or another education-related business and would like to explore your options, I would welcome an opportunity to speak with you. Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.