A nonprofit, tuition-free online university started by an Israeli entrepreneur last year has attracted 300 students and is seeking to carve out a niche in the largely commercial online-education field, BusinessWeek reports.

The University of the People began classes in September with students from nearly 50 countries, mostly in the developing world. Shai Reshef, a veteran of Internet-based educational ventures, has won the backing of the United Nations for the project, which recently announced a research partnership with Yale University.