For many cities and states in the United States, 2018 is the wettest year in history. The education technology industry has also experienced a lot of storms, and venture capitalists and private equity investors have released a lot of cash.SinoeastDeutsch Last year, U.S. Education Technology Corporation raised $1.45 billion, which is the same as the single-year financing maximum in the decade set in 2015, and more than the $1.2 billion raised in 2017. However, there are significant differences in financing between 2018 and 2015. There were 165 transactions in 2015, compared to 112 in 2018. In recent years, the flow of transactions has continued to decline: investors have invested more in the education technology industry, but the number of companies investing has decreased. In other words, their investment has decreased but the size of the funds has increased.
Matthew effect in the investment community: a large number of losers, a small number of winners
The Report first pointed out that there is a clear trend: since 2011, the number of dollars invested in the US education technology industry has steadily increased (2015 is a special case). Overall, larger scale but fewer transactions is a common trend in all US investment activities. According to market analysis firm CB Insights and PricewaterhouseCoopers data, despite the decline in trading volume, total financing for all industries increased in 2018. Pitchbook data pointed out that throughout the year 2018, US venture capital provided a total of 130.9 billion US dollars of funds, becoming a landmark year: the amount of capital investment in 2018 exceeded the $100 billion in the Internet bubble in 2000 for the first time.العربيةSinoeast
The report also pointed out that “the more concentrated the company’s capital, the easier it is to attract investment.” Moreover, this model is likely to continue until 2019. With the maturity of the US education technology industry, Sinoeast日本語 high-income companies are gradually emerging, and will attract the attention and investment of higher-level investors.
This is good news for educational technology companies that can show continued growth and revenue. But for others, it may be of concern. Jason Palmer, general manager of New Markets Venture Partners, said: “2019 will be an important year for the development of the education technology market, with a small number of big winners and a large number of losers – companies will either close down, finance, or be valued by reasonable valuation. The acquisition will be lower than they have reached the highest valuation.” Venture capital is by no means a guarantee of success. As the New York Times recently reported, some entrepreneurs are gradually avoiding investor concerns, and the increase in funds brought about by their participation has led startups to pursue growth at all costs and to lose business.SinoeastGalego
Increased investment threshold: seed rounds also need revenue
In the annual year-end analysis, EdSurge counts all of the risk financing of American Educational Technology Corporation, which primarily supports educators and learners in pre-12 and higher education.