Last November, Klass Capital announced its acquisition of the controlling stake in Docebo from Principia SGR. The private equity firm made its first investment in the company in February of this year; the initial $3 million in growth equity was raised by Docebo to accelerate the growth of its Software as a Service (SaaS) enterprise e-learning platform. Since that investment, according to the press release, Docebo “has experienced consistent triple digit growth” and added more than ten enterprise customers every month.
“We continue to be impressed with how quickly Docebo has been able to scale internationally,” said Daniel Klass, managing partner, of the Docebo acquisition. “We also believe that Docebo is in a strong position to address the social and informal learning management needs that exist in the market.”
With approximately $100 million in combined revenue, Klass Capital invests $2 million to $20 million in businesses in the U.S., Canada and Europe.
Claudio Erba, president and CEO of Docebo, echoed this sentiment, saying, “Organizations are beginning to understand that collaboration and informal learning are more effective than formal training methods.”
Founded in 2005 and headquartered in Naples, Italy, Docebo is a cloud e-learning provider of SaaS learning management systems (LMS). Last month, it entered the social and informal learning space with two new modules launched in private beta: Docebo Coach, which enables learners and subject matter experts to collaborate online, and Docebo Share, which captures user-generated content and provides peer review and validation.
“Learning leaders are increasingly recognizing their responsibility to…[leverage] the 70:20:10 approach by providing ongoing training through informal and social means,” according to Training Industry CEO Doug Harward. This trend is reflected in Docebo’s new modules, which are based on recent research finding that top organizations are 78 percent more likely to use user-generated learning content and five times more likely to use a social LMS. A recent “Training Industry Magazine” article also recommends using user-generated content and technology to create “a more organic learning style that really fits into the way people learn.”
The 70:20:10 Model theorizes that learners obtain 70 percent of their knowledge from job-related experiences, 20 percent from interactions with colleagues and 10 percent from formal education. According to Docebo, while the model is not new, “organizations are just now beginning to apply it to their e-learning strategies.” With innovations in technology like Docebo Coach and Docebo Share, organizations can “promote and leverage the 20 percent of the 70:20:10 model and make collaborative learning easier, more effective and more impactful.”
Other organizations have drawn similar conclusions. Early last year, Fort Hill launched 70-20, a cloud-based informal and social learning tool, and in 2014, Declara raised $16 million to support its social learning platform for teachers.
Harvard Business School recently saw the benefits of combining technology and informal learning. In 2014, the school launched HBX, a passive online education initiative consisting of lectures. Its leaders more recently decided to design a new program that would use active, social and collaborative learning to explore real-world problem solving.
The change in results was dramatic: a completion rate of just over 85 percent; content and teaching ratings of four or five out of five for 80 to 90 percent of participants; and high course engagement. They concluded that it’s possible to substitute social learning for expert knowledge – maybe not in content creation, but certainly in learner discovery, understanding and retention. Docebo’s new modules are aimed at providing both.
Organizations can lose a great deal of money when their employees don’t share their knowledge effectively. With the growth of technology and increase in knowledge-based work done by virtual or geographically dispersed teams, it’s more important than ever to explore ways teams can collaborate and learn from each other. With its acquisition of the controlling stake in Docebo, Klass Capital, a firm that “acquires high quality software companies that deliver mission critical systems,” has demonstrated not only the importance of learning management in general, but the mission-criticalness of social and informal learning in particular.