We have just finalized an investment in the Norwegian software company It’s Learning. This is the first investment we’ve done since the summer of 2009 so we’re really excited about finally getting the deal in place.

It’s Learning is one of Europe’s fastest-growing software companies and a leader in the LMS (Learning Management Systems) sector for the educational sector with millions of users in Europe and the US.

There are several reasons why we decided to make this investment.

First of all, they have a very strong team led by Arne Bergby who’s a serial entrepreneur and an experienced company builder.

There’s a lot happening in the educational sector and the transformation to web-based tools for digital learning is accelerating. The Nordic region together with UK & US are the leaders but many other countries are starting to jump on board as well. It’s a pretty fragmented market with a few large leaders with international presence and lots of small local vendors. However, as with many software companies, you need scale to be able to keep up with the heavy investments in product development so consolidation is already ongoing and will continue to take place.

We also really liked their product and product vision. It’s Learning has focused hard on building a great product that is easy to use and supports the learning process of students instead of only focusing on administrative tasks. What is also very clever is that they have built a very open system which allows users to easily plug in 3rd-party products like social media tools, Microsoft & Google products, and external educational applications.

It’s Learning has a very attractive business model. It’s a Software as a Service model with a subscription per user which enables high level of recurrent revenues and great scalability combined with pre-payment contracts.

The investment was done together with Norwegian venture capital firm Viking Ventures.