Edtech Funding Surges to Historic $2.5B in First Half of 2015

SEATTLE, July 1, 2015 /PRNewswire-iReach/ -- The investments made to learning technology companies across the globe in the first half of 2015 were the highest in the history of the learning technology industry. In the six-month period between January and June 2015, $2.51 billion was invested in learning technology companies according to a new whitepaper by Ambient Insight called "H1-2015 International Analysis of Learning Technology Investment Patterns."

"I have been working in the learning technology industry since 1983 and I have never seen such a burst in investor interest," reports Sam S. Adkins, Chief Research Officer.  "Investments made in the first half of this year outpaced those made for the entire year of 2014, and 2014 was a record high. Not only is the investment total of $2.51 billion astonishing, but the sheer volume of deals is phenomenal. In the first half of 2015, 262 edutech companies on the planet were funded, which is a 66% increase over the first half of 2014."

The first-half investment patterns in 2015 are remarkably similar to the whole-year patterns of 2014 characterized by large flows of capital going to companies operating in China, strong investor interest in consumer-facing companies, and unusually high amounts going to a handful of companies. Thirteen companies garnered amounts over $50 million in the first half; these thirteen companies combined obtained $1.05 billion. Eight of these companies were in China.

The free whitepaper can be downloaded from Ambient Insight's Resource Library:

http://www.ambientinsight.com/News/PublishedContent.aspx

"The most significant investment patterns in the global learning technology industry in the first half of 2015 were the spike in the funding of companies operating in China and the unprecedented flow of capital into consumer-facing companies," comments Adkins. "Investments made to 20 companies operating in China totaled $798.6 million; this was 32% of the total investment that went to all companies combined around the globe.

The major patterns within the investment activity in China are the funding going to new Mobile Learning companies and the investments in traditional online learning providers that are using the funds to expand their catalogs with Mobile Learning products. Investors are particularly attracted to companies that develop online English language learning products, digital test prep apps, and mobile edugames for young children.

"China was not the only beneficiary of funding across the planet," adds Adkins.  "In the first half of 2015, an additional $137.0 million went to 33 learning technology companies operating in India and an unprecedented $97.0 million was invested in eight learning technology companies operating in Brazil."

Investors overwhelmingly favored consumer-facing learning technology companies in the first half of 2015; these companies accounted for the vast majority of funding and the highest number of deals. Just over $1.4 billion went to consumer-facing companies in the first half, which far exceeded the $984 million invested in these companies in the entire year of 2014. Of the 262 deals made so far, 126 went to consumer-facing companies.

Media Contact: Sam Adkins, Ambient Insight, 360-805-4298, [email protected]

News distributed by PR Newswire iReach: https://ireach.prnewswire.com

SOURCE Ambient Insight