Parchment Finalizes Exit with Raine, Merges with Credentials Solutions
By Henry Kronk
February 11, 2020
On February 11, one of the preeminent digital transcript and student records providers, Parchment, announced it had completed a previously announced merger with Credentials Solutions following the exit of Raine Group, a previous investor. Financial details of the deals were not disclosed.
Parchment, originally known as Docufide, began digitizing and storing high school transcripts back in 2003. In the years since, the company has vastly expanded into a broad SaaS model, presiding over records, transcripts, and other information in numerous different sectors. The company now partners with K-12 institutions, colleges and universities, state agencies, and more.
Parchment, A Longtime EdTech Provider, Got Its Start in Digital High School Transcripts
Blackboard founder Matt Pittinsky invested in the company in 2011, and was later hired as CEO. He remains in the position today.
Despite leading the company through numerous funding rounds, Pittinsky has sought to broaden the college transcript to include information beyond grades, credits, and courses.
In a 2014 opinion piece for Inside Higher Ed, Pittinsky advocated for replacing the college transcript with a ‘Post-Secondary Achievement Record’ (PAR), which he describes as a “concise, electronic document that provides a standardized, machine-readable report of the full range of higher education experience. It can be verified by the academic registrar to confirm credibility, and it creates a common understanding of both course-based and campus-based achievements.”
While PARs haven’t necessarily come to dominate post-secondary credentialing, Parchment has continued to maintain relevance in the digital records sector.
The Raine Group Exits
The Raine Group led Parchment’s $23.5 million Series D in 2012. According to Crunchbase, Parchment has raised $66 million to date. The latest round involved $7 million in debt financing last April.
“We were attracted to Parchment because of its mission to help turn credentials into opportunities, its team and its potential to capitalize on shifting education sector dynamics,” said Raine Group Co-Founder and Partner Jeff Sine, in a statement. “In the seven years that we have partnered with the company, it has become the most widely adopted digital credential service on the market. The education industry has a strong need for innovative technological solutions and services, and the combined Parchment and Credentials Solutions organization is well positioned to build on its market leading position.”
Credentials Solutions Merges
Credentials Solutions actually predates Parchment. Founded in 1997, the company earned a patent for their online degree verification. They have also begun to serve other aspects of higher education facilities as well, like campus parking.
“Combining Parchment’s and Credentials Solutions’ networks of schools and universities, creates a comprehensive technology platform for issuers and receivers, a unified experience that integrates transcripts, diplomas, certificates and badges, and most of all a customer service mentality that puts the learner at the center,” Pittinsky said, in a statement. “Across our two organizations we have a talented team who care deeply about serving the credentialing community. Our first priority is to deliver on our members’ high service expectations today, while integrating the two platforms and processes to support continued innovation for the future.”
Pittinsky will lead the new company (Parchment) as CEO. Other details concerning the merged work forces were not disclosed. Pooling both previous companies’ clients will create a network of 10 state agencies, 1,500 institutions of higher education, and 5,240 high schools.
Featured Image: iStock.