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It is a well-known fact that several of the early progressive schools were privately, rather than publicly, funded. This has been observed in studies of progressive schools in, for instance, Japan and the United Kingdom. However, more specific analyses of the nature of this funding are rare. The overarching purpose of the article is to analyse and describe the funding of private upper secondary schools (läroverk) by means of a case study involving two schools in Gothenburg and Uppsala in the early 1900s. Primary material, such as minutes from the annual meetings of shareholders and final accounts, provides a broader understanding of the reasons why they were created and the conditions under which they operated. The schools were originally funded by a combination of donations from local philanthropists, public subsidies, and tuition fees. The importance of philanthropic capital gradually decreased. In addition, it also became clear that the schools were not driven by profit motives.