Story image

More investors turning to ed tech startups

10 Aug 2015

Education technology companies are receiving more backing than ever before, with venture-capital funding reaching $765 million in Q2 2015, according to CB Insights.

CB Insights says financing grew from $944M in 2013 to $1.6B in 2014, a 71% increase. Then, in the last four quarters, ed tech startups attracted $2.3 billion, which is a jump of 96% compared to the previous four quarters.

According to CB Insights, there were 217 deals in 2014, down from 223 in 2013.

The quarterly breakdown below reveals the recent surge in ed tech funding and deals.

Q2’15 set a new high for ed tech financing, with funding of $765 million. That result followed another strong quarter in Q1’15 with $647 million invested, which is the second-highest quarterly funding amount.

The biggest Q1’15 deal was $186 million in growth equity to education and training site, in a round that included Accel Partners, Meritech Capital Partners, Spectrum Equity Investors and TPG Growth. was later acquired by LinkedIn in Q2’15, for $1.5 billion.

When it comes to ed tech funding, there's been a trend toward late-stage investments, CB Insights says.

The dollar share of late-stage deals has ramped up from 13% in 2011, to 20% in 2014. The late-stage dollar share was 44% in the first six months of 2015.

The most active ed tech investor is NewSchools Venture Fund with investments in over 35 unique companies.

NewSchools’ largest deal was their participation in a $23.5M Series D funding to electronic school-transcript company Parchment in 2012. NewSchools has also invested in Teachscape and Kidaptive.

Second on the active ed tech investor list is Learn Capital with investments in over 30 separate companies, followed by 500 startups and Kapor Capital.

NewSchools fund is also the top early-stage VC with a majority of its investments going to early-stage companies.

NewSchools’ largest early-stage investments include deals to online learning companies EdCast and Education Elements, as well as math-curriculum company Carnegie Learning.

Investors 500 startups and Kapor Capital are tied for second with the overwhelming majority of their investments being at the early stage.

Pluralsight, a developer of  IT-learning software, is the most well-funded company with a total of $203.5M invested by backers including Felicis Ventures and Insight Venture Partners.

Learning platform Desire2Learn is second with $165M invested by Silicon Valley Bank, among others.

Tesla unveils the Model Y SUV
After much anticipation, Tesla unveiled the Model Y last week – a vehicle that is described as an all-electric, mid-size SUV that can seat seven adults – and the vehicle has a glass roof.
Preparation for Tokyo 2020 Olympics begins - with robots
The Tokyo 2020 Olympic Games are quickly approaching, but it won’t just be a sea of athletes and sports fans – now robots will make up a significant part of the fan experience.
NZ ISPs block internet footage of Christchurch shootings
2degrees, Spark, Vodafone and Vocus are now blocking any website that shows footage of the mosque shootings.
How AI could warn civilians before a volcanic eruption
Advance monitoring could lead to better disaster planning and evacuation warnings in the event of an eruption.
Facebook launches dedicated home for its Gaming
"All of our work on the Facebook Gaming team adds up to helping build the world's gaming community."
Spotify calls out Apple's anti-competitive behaviour
Apple's App Store rules "purposely limit choice and stifle innovation at the expense of the user experience—essentially acting as both a player and referee to deliberately disadvantage other app developers".
Sony launches headphones with 30-hour battery life
Sony’s EXTRA BASS series has a new family member that sports up to 30 hours battery life.
Chorus says the clock's ticking if you want UFB before the Rugby World Cup
“We know demand is going to be high for fibre installations in the lead up to the tournament and we want to make sure New Zealand’s most ardent supporters don't miss out."