EdTech

The Ed-Tech Market Heats Up

The Ed-Tech* market has recently been heating up due to recent large-scale acquisitions. One of these recent acquisitions, Hellman & Friedman’s acquiring Renaissance Learning, topped $US 1 Billion. In recent months, Google had made a $US 40 million investment in Renaissance Learning.

With this high valuation, the Ed-Tech market is attracting considerable attention. Successful companies in this industry are gaining the confidence of investors and thus favorable valuations. Such a high-profile acquisition demonstrates the changes that are driving the Ed-Tech market via technological advances similar to recent unfoldings in financial services and healthcare. It raises the profile and visibility of educational technology, fostering an arena that is used as a backdrop for a hot market of investors chasing opportunities, such as private-equity firms looking to make investments with more capital readily available to them.

Ed-Tech startups have raised massive amounts of capital in Q1 of 2014 alone. The fundraising is the most significant of the last five years in the Ed-Tech industry. Investors have already poured in $US 559 million for the current year. 2013 was already a big year for Ed-Tech, with investments easily exceeding $US 1 Billion. Bullish investors on the education industry are giving Ed-Tech momentum, which looks to carry on – a motivating sign for these Ed-Tech startups and entrepreneurs.

 

* Educational Technology is a tool that facilitates digital learning, or e-learning. The aim of Ed-Tech is to improve student performance and develop human capability via resources and technological processes.  Ed-Tech tools can be as simple as laptops to newer tools like smartphones. This array of tools advances learning potential and can be measured by human behavior in regards to the tools.

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