ABS Capital Leads $40 Million Series for N.Y. Firm Transfr Building VR Platform for Training

Bharani Rajakumar

ABS Capital has led a $40 million Series C round for Transfr, which is building a virtual reality platform for skills training. New York-based Transfr, started in 2017 by LearnBop co-founder Bharani Rajakumar, has raised over $90 million so far.

JPMorgan Chase Impact Finance and Advisory also joined the Series C round, along with existing investors — New York’s Lumos Capital Group, which led the Series B round; Akkadian Ventures (San Francisco), Spring Tide Capital (New York) and Firework Ventures (San Francisco), which led the Series A round; and Utah-based Album, which led the seed round.

Board Seat for ABS Capital

Following the Series C, ABS Capital partners Phil Clough will join Transfr’s board, while Jennifer Krusius, also a partner at the Baltimore- and Washington, D.C.-based firm, will serve as board observer.

“We believe that Transfr and its experienced management team are uniquely positioned to capitalize on the tailwind from the challenges in the labor market by providing innovative training solutions that can efficiently bring qualified candidates to market,” said Clough, a 22-year ABS Capital veteran who previously worked at Alex.Brown & Sons.

Clough also served as president and CEO of Sitel Corp., an offshore consulting firm. He received a B.S. degree from the United States Military Academy at West Point University of Virginia, and an MBA from University of Virginia’s Darden School of Business.

Far-reaching Potential

Transfr’s VR platform offers a cost-effective alternative for education and reskilling, with the potential to reach workforce candidates that otherwise would not have access to this level of training, said Krusius, who was promoted as partner at ABS Capital last year.

Krusius, an alumna of Harvard Business School and Cornell University, joined ABS Capital in 2020 after a stint as venture partner at Columbia Capital. She previously worked at Uber, Credit Suisse and the World Bank group’s International Finance Corporation, where she began her career in venture investing by working for IFC Asset Management Company.

Over three decades, ABS Capital has invested more than $2.5 billion, raised via eight funds, in about 130 companies. Its recent portfolio investments include Scene Health, High Street Partners, Cordial, Beep, Ribbit.ai and Apptopia.

‘Middle-Skills’ Careers
Transfr focuses on so-called “middle-skills” careers — defined as jobs that require more training and education than a high school diploma but less than a four-year college degree. This segment accounts for more than half of the U.S. labor market.

“About two-thirds of the American workforce do not have a college degree. There is a massive opportunity for both private and public entities to utilize VR training programs to create alternative pathways to employment,” said Rajakumar.