Edtech Investment Surged to $5.3 Billion by November 2015

New Ambient Insight Research: Historic Highs in Global Learning Technology Investment and Unprecedented Levels of Deal Flow between January and November 2015

SEATTLE, Nov. 30, 2015 /PRNewswire-iReach/ -- The investments made to learning technology companies across the planet in the first eleven months of 2015 reached historic highs and were more than double the amount invested in the entire year of 2014. Investments blew past the $5 billion threshold, which has never been breached in the history of the industry. Between January and November 2015, a total of $5,338,609,674 was invested in learning technology companies across the globe.

"Investment totals by November 2015 were 220% higher than the entire year of 2014 and we still have a full month left in the year," reports Sam S. Adkins, Chief Research Officer.  "Not only is the investment total of $5.3 billion breathtaking but the massive volume of deal flow is striking. By November 2015, 589 companies on the planet were funded; this is 82% higher than all of the deals made in the entire year of 2014."

The 2015 investment patterns have been characterized by quite large funding amounts. Twenty-one learning technology companies across the planet garnered investments amounts at or above $50 million in 2015; funding amounts this large were quite rare prior to 2015. Thirteen of these companies are based in China, seven in the USA, and one in Brazil. These twenty-one companies combined obtained $2.0 billion by November 2015.

"Learning technology companies in China continue to attract the lion's share of investments," says Adkins. "$1.7 billion went to 44 learning technology companies operating in China by the end of November 2015. Economic conditions are challenging in China in 2015 with a stock market crash and a significant devaluation of the yuan. So far, the adverse economic conditions in China have not had a significant impact on edtech investment activities. In fact, investors are now describing the economic situation in China as an environment conducive to investment."

The major patterns within the investment activity in China are the funding going to new Mobile Learning companies. Investors are particularly attracted to companies that develop online English language learning products, digital test prep apps, and mobile edugames for young children. Two Chinese companies garnered $200 million or more: TutorGroup, which obtained $200 million in November 2015, and HuJiang.com, which obtained an astonishing $257 million in two rounds in 2015.

"China was not the only beneficiary of funding across the planet," adds Adkins.  "By November 2015, an additional $254.1 million went to 55 learning technology companies operating in India. Funding amounts are relatively small compared to China with only ten companies obtaining $10 million or more. No company obtained over $30 million."

One interesting new trend is the apparent diminished interest in Brazilian learning technology suppliers. There have been no Brazilian companies funded in the fourth quarter yet. Brazil is now in a recession, has an inflation rate over 9%, and the Brazilian currency has fallen 33% since the economic meltdown began. In the beginning of 2015, analysts expected the falling currency to be a catalyst for investment in Brazil, but now believe the currency is still overvalued; investors are waiting on the sidelines.

Media Contact: Sam Adkins, Ambient Insight, 360-805-4298, sam@ambientinsight.com

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SOURCE Ambient Insight



2017

Tags

Internet Technology, Computer Electronics, Computer Software, Electronic Commerce, Multimedia & Internet, Financing Agreements


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