Edtech Investment Numbers Highlight Nature of Industry

CB Insights, which tracks venture capital information, showed that the edtech industry was on pace for record funding in 2014 with considerable investments from venture capital firms like 500 Startups and the NewSchools Venture Fund. In his latest column for GeekWire, Frank Catalano of Intrinsic Strategy takes a look at the edtech by the numbers and explains why it’s a “weird little industry” that is just at the beginning stages of growth.

  • A large portion of the funding surge is on the international front, especially China.
  • Overall, the companies receiving these investments tend to be creating home or retail education products and not classroom curriculum.
  • While there is funding for start-ups, there does not appear to be as much action for the later stages.
  • However, the largest amounts are going to older, more-established edtech developers.

“Yet despite all the records and excitement, edtech investment is, well, relatively lame. Uber alone raised $2.4B last year – more than the entire, most optimistic, worldwide education technology investment figure for all of 2014,” writes Catalano. “Edtech venture funding is a rounding error in blockbuster tech terms.”

Read Frank Catalano’s full article, “Can you count to $2 billion? Education technology investment hits new record,” on GeekWire.