On April 14, 2026, Gagan Biyani posted something on X that stopped many founders cold.

_“People have asked me how i feel about Udemy’s sale to Coursera. Honestly, I’m_ **_kinda pissed_** _about it”_

![Biyani's post on Coursera-Udemy merger (Source: X)](/api/media/elephantstripes-prod/cms/originals/blog-inline/2c0aa5a507bf0abb87f9266e59f4da51293f575771e913e56b12a189bcc2eaca.avif "Biyani's post on Coursera-Udemy merger (Source: X)")

By the time most people woke up the next morning, the post had 3,000-plus likes, hundreds of reposts, and hundreds of thousands of views. Not because the edtech industry loves drama. Because every founder who read it felt something twitch in their chest.

Biyani co-founded Udemy in 2010 with Eren Bali and Oktay Caglar. The platform built a genuine business: 75 million learners, 250,000 courses, enterprise contracts with more than half the Fortune 100, and an $800 million revenue run-rate by the time the acquisition was announced.

In December 2025, [Coursera](https://investors.udemy.com/news-releases/news-release-details/coursera-combine-udemy-empower-global-workforce-skills-ai-era) agreed to buy Udemy in an all-stock deal valuing the combined company at approximately $2.5 billion, with Udemy alone valued at roughly $930 million. Coursera shareholders end up holding around 59% of the combined entity. Closing is expected in the second half of 2026.

A story of edtech consolidation during a tough macro cycle. Fine. Except Biyani’s frustration is not about the macro environment. It is about a pattern that plays out in startup after startup, and almost nobody talks about it plainly until it is too late.

This is a masterclass in founder-investor dynamics, product stagnation, and the hidden costs of “professional management.” Biyani’s raw thread reveals five hard lessons every founder must internalise before their first big funding round, or risk watching their life’s work get sold instead of scaled.

## **From Outsiders to $800M: The Udemy Backstory**

![Udemy Co-founders (Source: Startuptalky.com)](https://miro.medium.com/v2/resize:fit:1260/0*Ul3ck9U4kA7P5kJe.jpg "Udemy Co-founders (Source: Startuptalky.com)")

The Udemy [origin story](https://pestel-analysis.com/blogs/brief-history/udemy) is the kind investors claim to love. Three outsiders with no pedigree and no savings, rejected 30 times by VCs before getting their first cheque, building a marketplace that let real practitioners, not just credentialled academics, teach practical skills to anyone who could afford a few dollars for a course.

It worked. After an early Series A and then a Series B led by Insight Venture Partners, the company grew fast. The post-Series B moment is where the founder-investor story gets complicated. Combined, the founders’ ownership dropped below 30%.

Investors began selecting the CEOs. Seven different chief executives would lead Udemy across its life. Kevin Johnson came in as CEO in June 2017. Gregg Coccari followed. Greg Brown took over in January 2023. Hugo Sarrazin arrived in March 2025, just months before the final merger discussions accelerated.

The professional management era delivered real results. The pivot to enterprise via Udemy Business generated close to $500 million in ARR from corporate clients. The October 2021 Nasdaq IPO valued the company at roughly $3 to $4 billion. Revenue scaled to an $800 million run-rate. More than 50% of Fortune 100 companies became paying enterprise customers.

The merger has real strategic logic, but it only becomes legible when you look at how these two companies competed. Coursera did not stand still while Udemy scaled. They layered corporate training onto their university catalogue, built fully-online degree programs with genuine institutional accreditation, and launched a direct B2B product to challenge Udemy Business in enterprise.

For years, neither had the clear edge. Udemy’s B2B business consistently outperformed Coursera’s in enterprise: better product, stronger retention, sharper sales execution. Coursera held the advantage in B2C, where university prestige and professional credentials drew individual learners and commanded significantly higher multiples.

The two were strategically deadlocked: Udemy winning enterprise, Coursera winning consumer and the investor narrative. Neither had the complete picture. The combined platform now projects roughly $1.5 billion in revenue run-rate with meaningful synergies, but Udemy’s valuation collapsed from its $3 to $4 billion IPO peak to roughly $930 million in this deal, telling you what the market ultimately rewarded.

The external headwinds were real: post-COVID edtech cooldown, YouTube compressing the free-content ceiling, and multiple compressions across the public market. Coursera approached Udemy three times before securing an agreement, and Udemy’s negotiating position eroded with each attempt. The first April 2024 offer gave Udemy shareholders 46% of the combined entity. The final November 2025 deal gave them 29%.

Biyani’s position is not that the market was kind. It is the innovation gap, left open for 15 years, that made a low-valuation exit inevitable.

## **Biyani’s Core Grievances, Quoted Directly**

![](https://miro.medium.com/v2/resize:fit:1260/0*p_i1IJGusobLN1wh.png)

Biyani is candid in the thread, and generous enough to acknowledge his own failures. He was [fired](https://www.businessinsider.com/udemy-gagan-biyani-fired-by-my-cofounder-hard-lessons-learned-2020-6#:~:text=Gagan%20Biyani%20cofounded%20Udemy%2C%20an,cofounders%20looking%20for%20technical%20partners.) as Udemy’s president by co-founder Eren Bali in 2012. He has written about being an abrasive and difficult leader in the early years. He does not pretend to be innocent in what followed.

But candour about personal failings does not mean he has no standing to call out systemic ones.

**Founders were marginalised at their own IPO.** Biyani describes being sidelined at one of the most significant moments in the company’s history, despite having co-invented the core product. The preference in the boardroom, as he frames it, was for “buttoned-up suits” over “brash, visionary” founders. The implication is not that polish is bad. It is that polish, taken to its conclusion, optimises away the instincts that built the company in the first place.

**No major product innovation for 15 years.** The core insight of 2010, cheap on-demand video courses from real experts, was still the core offering in 2025. Professional managers executed the original model. They scaled it. They built B2B on top of it. They did not challenge it.

**Coursera out-narrated Udemy despite lower revenue.** University degrees, corporate certificates, prestige credentials: Coursera built a story about what online education could become, and investors priced that story generously. Udemy built revenue. But revenue without narrative got a lower multiple.

**The founders traded long-term upside for downside protection, and good investors should not have let that happen.** This is the sharpest line in the thread. Young founders, including Biyani, made mistakes. But his argument is that replacing messy founders with controllable CEOs does not maximise outcomes. It controls for risk. The result is a company that performs without transforming.

Online reaction was mixed. Many founders and practitioners responded with genuine appreciation, sharing career-defining Udemy courses. Sceptics pushed back on the board-bashing, noting fiduciary obligations and genuine market constraints.

That split is healthy. The most useful analysis sits between the two.

## **Five Lessons Every Founder Must Learn From This**

![Photo by David Travis on Unsplash](https://miro.medium.com/v2/resize:fit:1260/0*ddsNldv1FMpVQW87 "Photo by David Travis on Unsplash")

### **1\. Your cap table determines your destiny more than your product.**

Post-Series B, Udemy’s founders held less than 30% of the company combined. That is the industry norm, not the exception. And it means that board composition, investor preferences, and risk appetites that are structurally different from yours will govern every major decision you thought you were building toward.

This is not an argument against raising capital. It is an argument for choosing capital providers who have a documented track record of backing founders through the hard years, not just the easy early ones.

The people who invest at Series A will set the culture of how founders are treated at Series C. Ask for references not from their best outcomes but from their worst. What happened when the founder was young and messy and the metrics were going sideways?

**Actionable step:** Before signing any term sheet, map every control mechanism through to a hypothetical Series C. Board seats, protective provisions, drag-along rights. Know what your leverage looks like in three years, not just today.

### **2\. Never let the board forget who built the thing**

Being marginalised at your own IPO is not a moment. It is the crystallisation of a culture that developed over years. By the time you feel it, it is too late to negotiate.

Founders need governance protections agreed before they are needed. A board seat. Observer rights on product decisions. Cultural safeguards that make founders structurally relevant, not just sentimental. These are not entitled asks. They reflect the reality that founders carry institutional knowledge no hired CEO can replicate, and the company is worse off when that knowledge leaves the room.

Jeff Bezos kept control of Amazon for decades through dual-class shares and board composition. Zuckerberg structured Meta’s governance so that no single outside pressure could dislodge his product vision. Those structures were not accidents. They were negotiated.

**Actionable step:** Negotiate board representation and product authority at the earliest round where you have real leverage. Series A is substantially easier than Series C.

### **3\. Execution gets you to the IPO; innovation keeps you from being acquired**

Professional managers are often excellent at execution. They are structurally poorly incentivised for disruption, because disruption requires tolerating short-term revenue risk for long-term positioning.

Udemy’s professional management did what the board asked. They scaled the core. They drove enterprise growth. They hit the metrics. For 15 consecutive years. And in those same 15 years, nobody in a position of authority forced the question of what Udemy should become next.

Coursera built online degrees. Duolingo built daily habits and a consumer brand. [Brilliant.org](http://Brilliant.org) built depth for the premium learner. Udemy built more courses. The market rewarded the companies that were building toward a new destination, not the ones optimising the journey they were already on.

The lesson: force product evolution relentlessly, and build innovation mandates into operating rhythms before the founder loses the influence to enforce them. A ring-fenced engineering budget for unproven bets. A product council with real authority. A formal bias toward cannibalising your own revenue before someone else does it.

**Actionable step:** Define, in writing, what your company’s “or die” innovation priority is for the next 18 months. Put it in the board pack. Make it someone’s job.

### **4\. Prestige and narrative beat revenue in investor court**

Udemy outperformed Coursera on raw revenue at various points. Coursera consistently commanded higher price-to-earnings multiples. The gap is not about financial engineering. It is about investor imagination.

Coursera’s university degrees and credentialing story gave investors a clear answer to the question: where does this go in 10 years? The answer was prestigious, differentiated, and difficult to commoditise. Udemy’s cheap video courses story, well-executed as it was, pointed to more cheap video courses.

Investors price narratives. Revenue confirms narratives. A company that generates $500 million in ARR with a strong story will be valued higher than a company generating $800 million in revenue with no clear next chapter.

The practical implication: your investor narrative is a product, and it needs the same deliberate development as your core offering. AI moats, proprietary outcome data, credentialing infrastructure, community networks: these are narrative-builders. Build them early.

**Actionable step:** Track your investor narrative as a separate metric from revenue. Update it quarterly. Compare how your story positions against competitors who may have less money but a stronger future claim.

### **5\. Founders drive asymmetric upside, if backed properly**

Biyani is honest that he made mistakes. He was difficult. There was internal conflict. He was removed from his own company partly because of how he behaved.

But his harder point is this: replacing difficult founders with controllable executives tends to convert asymmetric upside into predictable mediocrity. The company keeps running. The metrics keep moving. The original vision slowly evaporates. Years later, someone accepts an acquisition offer that no founder would have accepted at the start.

As a founder, the structural imperative is to maintain meaningful involvement in product direction, through advisory roles, board positions, or explicit product authority. Not to hold on out of ego. But because the people who feel the original problem most viscerally are the ones most likely to see the next version of it.

As an investor, the imperative is to build structures around difficult founders rather than replacing them when they become inconvenient. Bezos. Jobs after his return. The pattern is consistent: the best outcomes tend to involve a founder who stayed in the room.

**Actionable step:** If you are being quietly edged out of your own company’s key decisions, name it directly in a board conversation before it becomes structural.

## **My Take as A Founder**

Udemy changed lives. Genuinely. Millions of people built real skills from real practitioners and changed the trajectory of their careers. Biyani is right to hold both truths at once: pride in what was built, and frustration at what was left on the table.

But the systemic issue here matters beyond Udemy. Founder-investor misalignment is not an exception. It is the default architecture of most venture-backed companies. Most founders discover the terms of their own marginalisation slowly, after the leverage to change anything has gone.

The merged Coursera-Udemy entity has a real opportunity. The combined platform sits at a moment when AI is fundamentally reshaping how skills are identified, practised, and verified.

The catalogue, the enterprise relationships, the credential infrastructure: the raw materials are there for something transformative. Whether the board culture allows it, or whether it defaults to consolidation and cost rationalisation, will determine whether this merger is remembered as a turning point or a footnote.

For [SpeechLobster](https://speechlobster.com/), the AI-powered language learning app we are building, this thread maps directly onto decisions we are making right now. The B2B versus B2C deadlock between Udemy and Coursera is a live warning:

> You can win enterprise and still concede the narrative war to a competitor that owns the consumer story and commands higher multiples.

We are not making that concession. We are building for both sides: fluency outcomes that individual learners feel and can share, and enterprise features that give learning and development teams something to put on a budget line.

![SpeechLobster — our upcoming language learning app](https://miro.medium.com/v2/resize:fit:1260/1*bYRIrn_GbYMNJKoBLP6j_A.png "SpeechLobster — our upcoming language learning app")

In the future funding round, I am locking in founder board protections and explicit product authority so the people who feel the problem most acutely stay in the room. Not because I distrust investors. Because the structural incentives of most boards make innovation the first casualty of professionalisation.

The education system still fails most of the people it claims to serve. The founders who learn these lessons will be the ones who build something that actually fixes it. The ones who do not will write their own version of this thread in 2040.

Start earlier. Negotiate harder. Stay in the room.

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_The views expressed in this article are my own. You can read Gagan Biyani’s original post on_ [_X_](https://x.com/gaganbiyani/status/2044092914582822936)_. If you’re interested in our upcoming AI-powered language learning tool Drop us a message_ [_here_](https://elephantstripes.ai/contact) _to stay updated!_

 Five Brutal Lessons from the Udemy-Coursera Deal

 Five Brutal Lessons from the Udemy-Coursera Deal - Tat Banerjee

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Elephant Stripes is a consulting firm that designs, builds, and ships AI products and delivery systems.