The college and career planning startup ConnectEDU filed for Chapter 11 bankruptcy protection Monday night after struggling to repay debt held by more than 200 creditors.
ConnectEDU offers consulting services and planning and tracking tools to help students through high school and college and into careers that match their abilities and interests. In the petition, filed in a New York federal district court, the company lists between $10 million to $50 million in liabilities and less than $10 million in assets. The news was first reported by BostInno.
ConnectEDU becomes the second company backed by the Bill & Melinda Gates Foundation to run into trouble in the previous week. The company last July received a $499,375 grant from the foundation to build a platform for students to collaborate on learning Common Core standards for literacy. Last week, the student data repository inBloom -- for which the foundation provided millions of dollars in startup funds -- announced its plans to shut down.