However one main spherical skewed the numbers
My pal and colleague Natasha Mascarenhas has been reporting on the edtech beat quite a bit in 2020. To date studying her protection, I’ve found that not solely is edtech much less uninteresting than I anticipated, it’s really considerably fascinating frequently.
This week, for instance, India’s Byju purchased WhiteHat Jr., one other Indian edtech firm, for $300 million. So what, you’re pondering, that’s simply one other startup deal? Sure, but it surely was an all-cash transaction, and White Hat Jr. was solely 18 months outdated.
That’s sufficient to let you know that edtech is scorching in the meanwhile. Which is smart: a lot of the world is sheltering at house with faculty and workplaces shuttered.
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The COVID-19 period has offered an infinite boon to many software program startups, although some greater than others. Fortunately for its boosters, edtech, after being uncared for by VCs attributable to an expectation of small exits and lengthy gross sales cycles due to purple tape, is likely one of the sectors having fun with renewed curiosity from personal buyers and prospects alike.
In keeping with a Silicon Valley Bank (SVB) markets-focused report, edtech enterprise funding reached a local-maxima in Q2 2020, leaping greater than 60% from the primary quarter of this yr to the second. On a year-over-year foundation, Q2’s VC edtech outcomes had been much more spectacular.
However, there’s some nuance to the information that ought to mood declamations that personal edtech funding is eternally modified.
This morning let’s peel aside the SVB knowledge and parse by edtech funding rounds themselves from the second quarter to see what we are able to be taught. COVID-19 is remaking the worldwide financial system as we converse, so it’s as much as us to grasp its evolving kind.
An edtech increase?
From the top-line numbers, you’d be forgiven for pondering that edtech’s Q2 enterprise capital outcomes had been across-the-board spectacular.
Earlier than we dig into the outcomes themselves, right here’s the chart you want: