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The EdTech Episode #14

Dear readers,

Following on from last month's update, we have published our analysis of the major EdTech investment themes of 2019. While a cooling Chinese market took its toll on mega-deals, a number of ongoing trends continued to play out: Sino-US dominance, the emerging/developed markets split between K-12 and post-secondary, and the gradual emergence of India.

In recent news:

  • A new sector-focused accelerator is launching in Minneapolis-St Paul, in the United States. This highlights the relatively decentralised nature of the US EdTech ecosystem, with multiple hubs (e.g. the Bay Area, New York, and Boston) and large companies headquartered throughout the country. 
  • Galvanize, a bootcamp provider, sold for US$165M (or about 3.3x estimated 2020 revenue).
  • We also have the usual transaction round-up from around the world, with Chinese & Indian investments prominent this month.
- Peter Sahui
Market News

JMDedu has released its latest quarterly update on the Chinese EdTech market. According to Duojing Capital estimates cited in the article, the number of EdTech investments in China fell 32% in 2019.
Company / Institution News

The OnRamp Education & Workforce Innovation Accelerator, a new EdTech accelerator in Minneapolis-St Paul in the US, is accepting applications for its first cohort. Participating companies will receive a US$100K investment and take part in a 3-month program.

OpenClassrooms (a France-accredited MOOC platform focused on corporate training) 
has announced an online digital transformation course that combines content from the Stanford Center for Professional Development with OpenClassrooms' project- and mentor-based model. 

Byju's has raised a fresh tranche of funding from General Atlantic. The new investment has been reported at US$200M.

Yunxuetang, a China-based corporate training provider,
raised a US$100M Series D round. Centurium Capital led.

Wanxue, a China-based test prep provider serving students 18 - 30, 
raised a US$100M Series D round. ADV Partners led.

Top Hat, a Canadian provider of HE classroom engagement tools,
has raised a US$55M Series D round. Georgian Partners and Inova Capital led.

Vedantu, an Indian online tutoring company,
has raised a US$24M Series C round from GGV Capital.

Interviewbit, an Indian online coding bootcamp provider,
has raised a US$20M Series A round. Sequoia India and Tiger Global led.

Doubtnut, the Indian developer of an app that allows students to photograph maths & science questions and receive an explanation,
has raised a US$15M Series A round. Tencent led.

Course Hero, a US website for course notes and other resources,
has raised a US$10M Series B round. NewView Capital led.

Tiney, a UK childminding startup,
has raised a £5M (US6.5M) funding round. Index Ventures led.

1Huddle, a US provider of technology to gamify corporate training,
raised a US$5M Series A round. Tribeca Venture Partners led. 

K12 Inc has acquired Galvanize, a US bootcamp provider, for US$165M. This represents 3.3x estimated 2020 revenues of US$50M.

Cornerstone, a provider of HR and corporate LMS software, has agreed to acquire Clustree for US$18.5M.

Veritas Capital, a private equity firm, has acquired two HE management software companies from Leeds Equity Partners - (1) Campus Management and (2) Edcentric.

Brentwood Associates, a US private equity firm,
has acquired Parchment. It will merge it with Credentials Solutions, another business that it owns.

TSG, a private equity-owned provider of business management software,
has acquired Xplor, the Australian developer of childcare centre management software.

Hyland, an enterprise software provider,
has acquired Learning Machine, the developer of a blockchain tool to issue credentials.

Elder Research
has acquired, a provider of statistics and analytics courses.

Busuu, the UK-based developer of a language learning product,
has acquired Verbling, a live online language tutoring platform. 

IT Varsity, a South African provider of tech training,
has acquired Xander Apps, a local developer of educational apps for young children.

A couple of items from early January: Weld North Education, a private-equity backed US EdTech group,
acquired LearnZillion, while Aakash, an Indian test prep company, acquired 66% of MeritNation.
New Funds

There were no new funds raised since our last newsletter.
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