FROM THE INSIDERS: US edtech companies raised over $2 billion in 2015. But not everyone is celebrating—particularly investors. Two-thirds of the 50 investors, bankers and strategic buyers surveyed by Whiteboard Advisors “believe edtech companies are overvalued. “Companies without revenue, a track record, or evidence of efficacy are receiving valuations >$1m simply by incorporating and building a website,” says one anonymous respondent. (Ouch.)
The report also dives into the moneylenders’ perspectives on other trends including microschools (which 69 percent believe are here to stay) and the freemium business model (which only 31 percent say is sustainable). And the most likely buyers for K-12 edtech companies? Try Google, Pearson, McGraw-Hill, Amazon and LinkedIn.
