VC Investment In Edtech Gaining Momentum

VC Investment In Edtech Gaining Momentum by PitchBook

Whether it’s an investment manager’s personal donation to his or her alma mater, or Mark Zuckerberg donating $100 million to an entire school district, education has always been an area that wealthy individuals look to when the time comes to make charitable donations. But education technology (edtech) hasn’t been an enticing sector when it comes to equity investment, until recently.

Edtech has grown into much more than a platform for K-12 and undergraduate education, and that could be a reason for the shift in investor interest. The growth potential of sites offering courses for subjects such as language, coding, photography and animation, among others, captures not only those looking to learn skills for jobs and careers, but those looking for new hobbies and leisure activities. Utilizing these platforms has also become much easier with the growth of mobile devices and the computing power of smartphones.

In 2011, venture capital invested in the edtech sector eclipsed $800 million. That number has increased each year since, reaching $2.86 billion in 2015. The trend looks to continue, as nearly $1 billion of commitments were raised in 2015 for edtech-focused funds.

Here are some of the highest valued edtech startups, based on their most recent valuation:

VC Investment In Edtech Gaining Momentum



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