Before the coronavirus made edtech more relevant, companies in the sector were historically most likely to see slow, low exits. In spite of successful IPOs by 2U, Chegg and Instructure in the United States, public markets are not crowded with edtech companies. A few of the largest exits in the space consist of LinkedIn’s scoop of Lynda for a$1.5 billion in money and stock and TPG’s purchase of Ellucian for$3.5 billion.
However both of those offers happened in 2015. 5 years later on, edtech is cooler and surging– but is it seeing exits? Are < a class="crunchbase-link"href="https://crunchbase.com/organization/lynda-com"target="_ blank"data-type="company" data-entity =”lynda-com” > Lynda and Ellucian one-off success stories?
2U’s co-founder and CEO, Chip Paucek, stated he is optimistic.
“We are an uncommon edtech IPO,” he told TechCrunch recently. “For a very long time in edtech it was either ‘sell to Pearson or not.'”
In spite of the sector’s sluggish past, Paucek stated now is a good time to start an edtech company since the sector “is finally beginning to hit its stride” with more back-end infrastructure and demand for online education.
This morning, let’s use some data to paint a picture of the landscape of edtech exits and bring some balance to this stodgy stereotype.
Boot the growth There have been approximately 225 acquisitions in edtech in between 2003 and 2018, according to Crunchbase data. RS Elements sent me a graph in March to contextualize this timeframe a bit more:
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.