Education is going through a momentous shift at the moment. By the time the next generation is born, the way they are being educated will be radically different to the way our generation has been educated. What’s the main driver of that innovative transformation? It’s the same phenomenon that’s disrupting other industry, the digital technology revolution. While there’s an ever increasing number of business ideas that are proposed, who are the top edtech investors who are helping them succeed?
Three interesting facts stand out when we analyze the top edtech investors ranked by how much they invested in education technology startups in 2014.
First and foremost is the fact that Utah-based Pluralsight is very quickly becoming a leading edtech startup. With over 3000 online courses, this startup is focused on providing advanced training for software developers and other technology professionals. In 2014, this business secured investment from all 3 of the top edtech investors, Insight Venture Partners, Sorenson Capital, and Iconiq Capital in a $135 million Series B funding round that valued the company at nearly $1 billion. Will their courses become core steps to career progression for technology professionals? Only time will tell, but we’re willing to bet on it.
The second edtech startup that is attracting interest from top edtech investors is Taiwan-based English-learning TutorGroup. It secured a $100 million Series B funding round from Alibaba, Qiming Venture Partners, and Temasek Holdings (fifth, sixth, and seventh place on the top 10 list). TutorGroup expects the English-language learning market to grow to more than $25 billion annually this year in China alone and at the moment it’s best positioned to benefit from that growth.
And finally, a piece of advice for all the education technology entrepreneurs who are reading this article. You should check out NY-based GSV Capital. Approximately 50% of all the investment rounds they participated in in 2014 were for education technology startups, which explains why they are one of the top edtech investors. These include exciting businesses like General Assembly, Curious.com, and Declara.