Lambda School, a Y Combinator company that trains students in software engineering in exchange for a slice of their income for a few years, recently raised $30 million from investors in a Series B round. The core differentiator between Lambda School and its competitors is that Lambda operates under the Income Share Agreement (ISA) model.
The ISA model makes sense and is popular among students. They don’t have to pay anything up front, they receive training, and they only pay Lambda School back if they get a job earning more than $50,000/year. And it’s an improvement upon the sometimes-shoddy tuition-based model employed by coding boot camps since the industry started years ago.