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The startup previously raised over $130 million from Silicon Valley giants including Mark Zuckerberg, Peter Thiel's Founders Fund, and Andreessen Horowitz. 

In May 2015, Business Insider spent the day at AltSchool's Fort Mason location in San Francisco to see its revolutionary teaching style in action.

AltSchool is a network of "micro-schools," each enrolling between 35 and 120 students, that aims to bring education into the 21st century.

AltSchool is a network of "micro-schools," each enrolling between 35 and 120 students, that aims to bring education into the 21st century.
Melia Robinson/Business Insider

Max Ventilla, former head of personalization at Google, left the company to found AltSchool in 2013. Today there are seven locations across the Bay Area and New York.

Max Ventilla, former head of personalization at Google, left the company to found AltSchool in 2013. Today there are seven locations across the Bay Area and New York.
Melia Robinson/Business Insider

The venture-backed school system is eyeing an expansion in Chicago in fall 2018. It also wants to bring its technology to new schools that operate outside its network.

The venture-backed school system is eyeing an expansion in Chicago in fall 2018. It also wants to bring its technology to new schools that operate outside its network.
Melia Robinson/Business Insider

In 2015, we spent the day at AltSchool's Fort Mason location in a ritzy San Francisco neighborhood. At the time of our visit, tuition cost more than $20,000 a year.

In 2015, we spent the day at AltSchool's Fort Mason location in a ritzy San Francisco neighborhood. At the time of our visit, tuition cost more than $20,000 a year.
Melia Robinson/Business Insider

AltSchool divides students between the ages of 4 and 14 into three groups: lower elementary, upper elementary, and middle school. There are no traditional grade levels.

AltSchool divides students between the ages of 4 and 14 into three groups: lower elementary, upper elementary, and middle school. There are no traditional grade levels.
Melia Robinson/Business Insider

A typical day at AltSchool begins with attendance. As kids arrive, they sign in to the school's attendance app on a dedicated iPad.

A typical day at AltSchool begins with attendance. As kids arrive, they sign in to the school's attendance app on a dedicated iPad.
Melia Robinson/Business Insider

The attendance app is one of many tools developed by an in-house product team, which includes former employees of Apple, Uber, Zynga, and Ventilla's alma mater, Google.

The attendance app is one of many tools developed by an in-house product team, which includes former employees of Apple, Uber, Zynga, and Ventilla's alma mater, Google.
Melia Robinson/Business Insider

Those products live on My.AltSchool, a digital platform that tracks everything from students' attendance and grades to food allergies and Personalized Learning Plans, or PLPs.

Those products live on My.AltSchool, a digital platform that tracks everything from students' attendance and grades to food allergies and Personalized Learning Plans, or PLPs.
Melia Robinson/Business Insider

The PLP is the foundation of the AltSchool experience. Teachers work with families and students to design a set of goals for the learner based on the student's interests, likes, strengths, and weaknesses.

The PLP is the foundation of the AltSchool experience. Teachers work with families and students to design a set of goals for the learner based on the student's interests, likes, strengths, and weaknesses.
Melia Robinson/Business Insider

Each child receives a weekly "playlist" of individual and group activities that are aimed at achieving those goals. This student was writing an entry for his blog on coin collecting.

Each child receives a weekly "playlist" of individual and group activities that are aimed at achieving those goals. This student was writing an entry for his blog on coin collecting.
Melia Robinson/Business Insider

This 8-year-old demonstrated a game of Pac-Man using MaKey MaKey — a simple circuit board that transforms everyday objects into touchable user interfaces.

This 8-year-old demonstrated a game of Pac-Man using MaKey MaKey — a simple circuit board that transforms everyday objects into touchable user interfaces.
Melia Robinson/Business Insider

He attached alligator clips to mounds of clay and taped one clip to himself. When he tapped the clay and completed the circuit, the computer interpreted the input as arrow key actions.

He attached alligator clips to mounds of clay and taped one clip to himself. When he tapped the clay and completed the circuit, the computer interpreted the input as arrow key actions.
Melia Robinson/Business Insider

Teachers pick activities for their students by creating items in their playlists or searching the My.AltSchool library to find items that other teachers have made.

Teachers pick activities for their students by creating items in their playlists or searching the My.AltSchool library to find items that other teachers have made.
Melia Robinson/Business Insider
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This streamlined instruction time frees up the teacher to walk around the classroom and interact face-to-face with students.

This streamlined instruction time frees up the teacher to walk around the classroom and interact face-to-face with students.
Melia Robinson/Business Insider

The lower elementary students spent the morning of my visit knocking a shared item off their playlists: "writing the news." These guys chronicled a recent trip to the park.

The lower elementary students spent the morning of my visit knocking a shared item off their playlists: "writing the news." These guys chronicled a recent trip to the park.
Melia Robinson/Business Insider

Many of the younger kids wear headphones during playlist time to drown out distractions.

Many of the younger kids wear headphones during playlist time to drown out distractions.
Melia Robinson/Business Insider

Technology isn't necessary to complete all activities, but it is used to document students' work. This student used an iPad to take a picture of her news clipping and uploaded the image to her playlist.

Technology isn't necessary to complete all activities, but it is used to document students' work. This student used an iPad to take a picture of her news clipping and uploaded the image to her playlist.
Melia Robinson/Business Insider

The classroom, like the tech, fosters AltSchool's individualized learning approach. Students sprawl across the room on carpets, beanbags, and even lofts of their own construction.

The classroom, like the tech, fosters AltSchool's individualized learning approach. Students sprawl across the room on carpets, beanbags, and even lofts of their own construction.
Melia Robinson/Business Insider

Classrooms are treated like stations, rather than designated areas for different grade levels. Students move from room to room throughout the day. It's especially important for micro-schools to maximize space so that a four-room schoolhouse doesn't feel cramped.

Classrooms are treated like stations, rather than designated areas for different grade levels. Students move from room to room throughout the day. It's especially important for micro-schools to maximize space so that a four-room schoolhouse doesn't feel cramped.
Melia Robinson/Business Insider

Craft and cleaning supplies are stored where the smaller kids can reach them, giving them a sense of agency.

Craft and cleaning supplies are stored where the smaller kids can reach them, giving them a sense of agency.
Melia Robinson/Business Insider

Cameras are also mounted at eye level for kids, so teachers can review successful lessons and "the steps leading up to those 'ah-ha' moments," head of school Kathleen Gibbons said. Some children use them as confessionals, sharing their secrets with the camera.

Cameras are also mounted at eye level for kids, so teachers can review successful lessons and "the steps leading up to those 'ah-ha' moments," head of school Kathleen Gibbons said. Some children use them as confessionals, sharing their secrets with the camera.
Melia Robinson/Business Insider

After lunch and PE in the nearby park, students put aside their playlists and work on more integrated group projects.

After lunch and PE in the nearby park, students put aside their playlists and work on more integrated group projects.
Melia Robinson/Business Insider

The middle-school students were tasked with a classroom redesign. This 11-year-old designed a parkour course. He was writing a parent permission slip on his Google Chromebook.

The middle-school students were tasked with a classroom redesign. This 11-year-old designed a parkour course. He was writing a parent permission slip on his Google Chromebook.
Melia Robinson/Business Insider

His classmate learned from online tutorials how to use a 3D-modeling software, and she designed an urban-garden-inspired seating area for the second-floor deck. There was an obstacle course inside the benches for a class rabbit to tunnel through.

His classmate learned from online tutorials how to use a 3D-modeling software, and she designed an urban-garden-inspired seating area for the second-floor deck. There was an obstacle course inside the benches for a class rabbit to tunnel through.
Melia Robinson/Business Insider

Another student, who wants to be a veterinarian, lawyer, writer, and manga comic-book writer, grew an indoor tea garden. She said she loves how the assignments "bend to your ability."

Another student, who wants to be a veterinarian, lawyer, writer, and manga comic-book writer, grew an indoor tea garden. She said she loves how the assignments "bend to your ability."
Melia Robinson/Business Insider

The new $40 million in funding that AltSchool raised will enable the network to grow beyond a handful of schoolhouses in the Bay Area and New York.

The new $40 million in funding that AltSchool raised will enable the network to grow beyond a handful of schoolhouses in the Bay Area and New York.
Melia Robinson/Business Insider

If Silicon Valley's favorite elementary school has its way, personalization will remain king.

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If Silicon Valley's favorite elementary school has its way, personalization will remain king.
Melia Robinson/Business Insider

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