VIVA LA MOOC! With the recent news that edtech companies had raised over half a billion dollars in the first quarter of 2014, we decided to see what lies beneath this tidal wave of cash.
Of the $500 million worth of investments that EdSurge reported on from January to March 2014, we categorize more than 54% as Language Learning products, MOOCs, Private Schools and Professional Training.
The single biggest driver? A $100M investment in Tutor Group, a suite of online tools aimed primarily at English language learners in Southeast Asia. Here's our quick break down of the numbers, aimed at identifying which edtech sectors are getting soaked and which still need of a bit of rainmaking.
Most interesting here is the relationship between number and dollar value of investments for companies focusing on "Teacher Needs." It may signal that investors are willing to see what sticks by spreading their dollars across a relatively large number of teacher-focused products. In contrast, companies focusing on "Curriculum Products" and "School Operations" have seen a proportionally greater share of the overall investment dollars, even though the number of deals with these companies is on par with number of investments going to "Teacher Needs" companies. Below is a more detailed look at how the numbers are playing out.
Check out the EdSurge Edtech Index for a snapshot of the emerging products and companies.
