In the broader credential market, our former portfolio company Credly has issued 50 million credentials over the past 10 years, a trend that keeps accelerating, and Burning Glass announced in 2019 that 200 non-degree credentials were already achieving parity to the college degree in terms of employee starting salary. And the most active buyer goes to India-based Byjus, which snapped up U.S.-based Tynker and Epic! But it can extend the support that so many students, parents and educators need at this moment, and provide more opportunities for people to teach and learn in ways that best suit their lives. Since the smaller companies arent as well known as the mega tech companies, they performed fantastically as well but not as much as the large tech software companies. Hi Tom, thanks for your comment. t should now be up and running and on your way to your email! We provide enterprise value multiples based on trailing Revenue, EBITDA, EBIT, Total Assets, and Tangible Assets data, as reported. It is fascinating to see how the valuation multiples change year over year, reflecting whats going on around the world. It should be in your inbox now! Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. This has resulted in shorter time frames, bigger checks, and more competition to get in on the hottest deals (not dissimilar to a red-hot housing market). go public via SPACs in the past few months. Private Ed Tech Company M&A Valuation Multiples Climb in 2012 and Stand at 2-3x Publicly Traded Education Companies. As a Premium user you get access to background information and details about the release of this statistic. [Online]. Based on M&A transactions over the last 5 years, Hampleton Partners found that the median Revenue multiple for PropTech companies was 3.7x. You will see numerous high-value exits in the first half of 2021. Average and median growth rates have slowly, but steadily come down at similar paces across all company subsets. Hi Jason, you should receive it automatically if you put your email in the field for the file. See, I really did look all over your website.). They grew it to 8m and just sold in late 2020 for 7 X sales. 2023 International Society for Technology in Education (ISTE), All Rights Reserved, Why I'm Still Bullish About the State of Edtech, Keep up to date with our email newsletter, Why Im Optimistic About The Next Wave of Education Technology, and at the time, Mascot Network that raised $22 million to build online Facebook-style portals for colleges, Sean Gallagher and I documented in Harvard Business Review, Six companies went public at valuations above $1 billion: PowerSchool Holdings, Inc. (NYSE: PWSC), Duolingo, Inc. (NASDAQ: DUOL), Instructure Holdings, Inc. (NYSE: INST), Coursera, Inc. (NYSE: COUR), Udemy, Inc. (NASDAQ: UDMY), and Nerdy, Inc. (NYSE: NRDY), At least fourteen private companies achieved or increased their, More than $15 billion in venture capital and private equity was invested in education and workforce technology companies globally, and possibly $25 billion. 6 EdTech Unicorns joined the list through 2022 and HolonIQ removed 12 companies from the list in our annual review (Jan 2023), assessed as 'lapsed'. GoGuardian joined the list in August 2021, raising a $200M PE Round. The creator economy, especially as it connects to STEM, design, video and data science. This shows that while some companies only benefitted temporarily from the effects of COVID-19, there were some winners. You need at least a Starter Account to use this feature. To be fair, everybody got a boost. Thanks for reading as always and leave a comment if you found it useful!. I got the email to confirm my subscription to your blog, but no dataset. At $8.2 billion, the edtech industry accounted for 2.5 percent of the record $330 billion raised by all U.S. venture-backed companies last year. A unicorn startup or unicorn company is a private company with a valuation over $1 billion USD priced via a venture funding round. Whats attracting them? Simply put: more market liquidity or, in cruder terms, better bang for the buck. In 2023, the average revenue multiple is 2.3x. My recent experience has been acquisition activities between manufacturing and tech to head towards smart factory; curious what youre seeing. On rare occasions, it takes a few hours or a day for the email to go through after putting your email in the field. Stay at this apartment in Lisbon. Weighing 40% of NASDAQ, the Big 10 largest market cap companies effectively acted as a replacement to no interest Bonds, advancing +30% in 2021 while 30% of NASDAQ companies actually declined more than 15% or more during that same period. Companies with strong fundamentals, in the form of revenue growth and profitability, can expect to have higher valuation multiples. Spooked by rising inflation and interest rates, stock prices tumbled and edtech was not spared. The Santo Antonio Festival takes place on the historic streets of Alfama, Bica, Bairro Alto, Castelo, and Madragoa. There are important TAM, business model, pedagogical and regulatory factors to consider in valuation. Get news, advice, and valuation multiples reports like this one straight into your inbox. Thanks Max! The information provided is accurate at the time of publishing. Marqus de Pombal. Public markets, as the hopeful ultimate buyers of growth-stage investments, are no longer supportive of generous valuations. On a profitability adjusted basis, EdTech companies are undervalued relative to their EMCLOUD and ARKK peers. But overall, it seemed to have an opposite effect for microcap companies. On rare occasions, it takes a few hours or a day for the email to go through after putting your email in the field. Bears are hard to find right now: the sector, once undercapitalized, has brought in $10 billion in venture capital funding globally in 2020. Join 80,000+ free weekly newsletter subscribers. As a Premium user you get access to the detailed source references and background information about this statistic. . Platforms such as GoStudent, Multiverse, Labster and Open Classrooms set new investment records for the region and broad base European investors. Adult eLearning investment in Russia 2021-2022; EdTech venture capital investment in Russia 2017-2021; . The median revenue multiple increased from 2.5x in 2020 to 3.5x in 2021. The companies with the highest valuation premiums trade at, Since the middle of 2021, public EdTech stocks growing 25%+ have seen a pullback in their valuation multiples from, EdTech stocks have historically traded at multiples below technology and software stocks, but through COVID experienced stronger growth and a corresponding boost in valuation multiples which are now returning to normalized historical levels. Full data set download info below the table. Ongoing disruptions to childcare services will continue to put considerable stress on parents and their ability to work. The real interest rate, at a historically low -6%, drove money flows to the Big 10, Alternatives, and Cryptocurriencies. Hi would love a copy of the data set! By Editorial Team Updated on February 27, 2023. Companies in the EdTech sector helped tackle these challenges by building and harnessing IT infrastructures to guarantee access to learning resources. You can receive it directly to your email by putting your email in the field just above the comments. You can insert your email address in the field at the end of the article and it will be delivered to your inbox directly. See previous changes in the log below the list. Looking at revenue valuation multiples, we can see howas a result of the pandemicvaluations for EdTech companies rose throughout 2020 before correcting back to lower levels in the first half of 2021. However, it was mainly big tech companies that became over-valued. The articles in this first issue of Learning, Media and Technology in 2021 offer a range of different perspectives and analyses of educational technologies. The year was also marked by strong public market activity, with several high profile EdTech IPOs such as Coursera, Duolingo, Instructure, and Udemy. The average revenue multiple of American tech companies is 2.6x, which is slightly higher than the global average. I expect even more consolidation in the bootcamp space. I think investors from, novice to pro, are all dumbfounded. Everyones mental health has been tested. Listed companies are prohibited from issuing stock or raising money in capital markets to invest in school-subject tutoring institutions, and foreign firms are banned from acquiring or holding shares in school curriculum tutoring institutions. Changes to the above list, older than 12 months are published below. Hello, thanks for this great content. Note: The universe of public EdTech stocks has been somewhat limited historically, especially with recent take-privates like Pluralsight, but we expect to see continued IPO activity. Thanks John. Thanks for your comment! Now, valuations arent everything but they arent nothing, either. The sentiment suggests that despite an apparent revitalization, edtech isnt at the same level of value in investor eyes like sectors such as e-commerce, consumer and fintech. Udacity removed from the list in Jan 2023, assessed as 'lapsed'. Many investors think that the exit environment is set to dramatically change in the next few years. I think each computers firewall treats downloads differently. The average EV / EBITDA multiple of all software companies is 12.7x. "Valuation of edtech companies in India in 2020 (in million US dollars)." Privacy policy. Pls send me the data set, this is a very nice article, thanks. And this is ultimately why I remain bullish about being an education-to-workforce investor, with a discerning eye for education-to-employment use cases with demonstrated revenue growth, gross margins, total addressable market and most importantly efficacy and ROI. To download the ~1000 companies data set in this analysis, enter your email address below or if you dont see it, then click here to enter your email on that page to sign-up for the mailing list and the data set will be sent to your email directly. Toggle between the data set and the averages tabs. Looks like the company you represented falls exactly in line with the trend were seeing in the market. Search prices for AutoEurope, CAEL, Europcar, Free2Move, Goldcar Rental SP and Guerin. Total transaction volume increased 6 percent over 2020, from 433 to 457. The average revenue multiple of American tech companies is 2.6x, which is slightly higher than the global average. The orange line (higher) is the S&P 500 Software industry index. Has the new interest from generalist investors made valuations too bubbly, or is the market growth helping everyone? Udemy left the list in Oct 2021 via IPO, raising $421M with a $3.7B market cap. On the other hand, what consolidation do you expect to see? As we finally turn the page on a tumultuous 2020, we step into 2021 with a renewed sense of optimism. We met on Zoom with over 800 founding teams in COVID all over the world. Our sweep of the data surfaced training startups for personal fitness, firearms, bartending and hair salons, among many others. Expected NTM growth rates in EdTech are in line with EMCLOUD and ARKK stocks, around the 30% range. Ive set it up so that the file gets sent directly to your email in order to prevent blocks from downloading, but not sure what thats occurring! Vienna's GoStudent raises $244M at a $1.7B valuation for its online tutor marketplace Ingrid Lunden, Mike Butcher / 11:00 PM PDT June 21, 2021 Comment Image Credits: GoStudent TechCrunch. "Valuation of Edtech Companies in India in 2020 (in Million Us Dollars). Education is now a core focus area for the global investment community, alongside peer industries such as Climate and Health, together allowing investors to participate in the growth of this special cohort and positively contribute towards a more sustainable and inclusive future. Profit from the additional features of your individual account. (December 16, 2020). Markets aside, there will be no shortages of challenges for education and the workforce this year. EdTech Valuation Multiples: How to Evaluate Tech Startups. Understanding EdTech Valuations. Valuations for EdTech companies rose throughout 2020 before correcting to lower levels throughout all of 2021. You can go to about me to read more about me. Can you please send me the dataset? Show publisher information Mean forecasted revenue growth was 593% (from 2021 to 2022), Median forecasted revenue growth was 275% (from 2021 to 2022), H2 2021 saw similar round sizes and dilution as H1, but the median revenue multiple and median forecasted growth rate nearly doubled (from 4.6x to 10.0x and from 253% to 513%, respectively). How Do the Tech Valuation Multiples Compare in 2021 to 2020? If theres equal weighting between the valuation methodologies, the company can command a price at least 10% higher. The U.S. economy has more than 10.9 million open jobs, and 6.5 million of these jobs require a combination of technical and interpersonal (EQ) skills. When do you expect to see that change? Ed-tech . Credly, for example, was acquired for $200 million in January 2022, which represented a valuation multiple of 15.1x LTM revenue. double, to a $42.5-billion market, by 2025, public markets are finally warming up to the sector, analysis of education M&A activity in 2021, rethinking company cultures and environments. And for creators and entrepreneurs seeking to teach and earn, there was Kajabi, a platform where they can create and sell their own online courses. Edtech has traditionally had few exits. The CCI has also dropped back below 100 after making steady gains since the height of COVID in April 2020, indicating a more pessimistic attitude among consumers regarding the future developments in the economy. You need a Statista Account for unlimited access. Report Declining enrollments across both public K-12 schools and higher education, compounded by dire staffing shortages, will continue to strain a system that for long has been a bedrock of society. Copyright 2022 HolonIQ All Rights Reserved. Tracksuit raises $5M to make brand tracking more accessible. 2021 also saw five Unicorns escape the herd, making their way to the capital markets via IPO, 3 US Unicorns and 2 Chinese listed on the NYSE and NASDAQ, adding to the acquisition of Lynda.com in 2015 marks 6 Unicorn exits in total so far. In a 'Mark to Market' scenario, where Jan 2023 consensus valuation multiples are used to 're-price' the last round, we note this list would further reduce by 25-50%. Click on the link below to go to the post. Scroll down to see how 2022 numbers compare to 2021 and previous years. The pandemic-accelerated adoption of digital tools in schools was rushed and rocky at best. Nothing in this website is intended to be or should be construed or taken as accountancy, investment, tax or any other kind of advice. Learn more about how Statista can support your business. Edtech market reported significant growth since the advent of the COVID-19 pandemic In 2021, a total of 332 merger and acquisition deals were reported in the Edtech sector Recently, Scaler acquired online learning startup AppliedRoots for $50 million Increase in M&A Deals in Edtech Industry Share Published: April 2022 Source: GlobalData Impact investing, the broad wave of focus on Environmental, Social and Governance (ESG) investment considerations, combined with rising awareness for the United Nations Sustainable Development Goals (SDGs) has created a new consciousness about social and economic impact. Learn how your comment data is processed. The overall sales in the Edtech market are expected to reach the valuation of ~US$ 74, Bn by the end of 2021. Mega valuations tend to justify bigger deals, which is reflected in bigger check sizes across all investment stages in 2021. There were no EdTech Unicorn exits in 2022 and 2023 will prove a challenging exit environment at this stage. If you are an admin, please authenticate by logging in again. How Do the Valuation Multiples Compare to Industry. Most EdTech companies have not released Q4 results yet, however, all that have reported were in line with or exceeded forecasts: Coursera ($115M actual vs. $112M forecast), 2U ($244M actual vs. $243M forecast), Udemy ($137M actual vs. $132M forecast) and Chegg ($207M actual vs. $195M forecast). It should be in your inbox if not, it might be in your spam! Available: https://www.statista.com/statistics/1226925/india-valuation-of-edtech-companies/, Valuation of edtech companies in India in 2020, Available to download in PNG, PDF, XLS format, eLearning market size in Russia 2021-2022, eLearning market growth in Russia adjusted to the war in Ukraine 2022, Revenue of the 100 leading EdTech platforms in Russia quarterly 2021-2022, Online education revenue in Russia 2017-2027, by segment, Online education users in Russia 2017-2027, by segment, Online education market share in Russia 2021, by segment, EdTech revenue growth in Russia 2022, by segment, Online education average spending in Russia 2022, by course type, B2C adult online education market size in Russia 2021, by subject, Professional eLearning student count in Russia 2016-2020, Online supplementary children education market volume in Russia 2016-2020, Fastest growing EdTech platforms in Russia 2022, Most visited educational websites in Russia 2021-2022, Education apps with the highest in-app revenue in Russia 2022, Adult eLearning investment in Russia 2021-2022, EdTech venture capital investment in Russia 2017-2021, EdTech venture investment share in Russia 2021, by segment, EdTech venture capital investment value in Russia 2021, by stage, Largest EdTech venture deals in Russia 2021, by value, Professional education & learning service purchases in Russia 2022, Age distribution of online education users in Russia 2022, Most popular online course subjects in Russia 2022, Share of online course students completing programs in Russia 2022, Online course participation purposes in Russia 2022, Online education satisfaction in Russia 2022, Most trusted online education types by Russian employers 2019, Opinion poll on the influence of online diplomas on hiring in Russia 2019, Distribution of online education institutions in Russia 2020, by target audience, Distribution of online education institutions in Russia 2020, by segment, Distribution of online education projects in Russia 2020, by number of products, Public opinion on reliability of online education in Russia in 2018, Most promising EdTech segments in Moscow 2019, Number of EdTech investment deals in the United Kingdom 2011-2018, Distribution of EdTech startups in Australia 2017 by expected revenue growth, Mexico: spending on online education 2019, Future focus areas of startups in the EdTech industry in Australia 2017 by activity, Valuation of edtech companies in India in 2020 (in million US dollars), Find your information in our database containing over 20,000 reports. Valuation of edtech companies in India in 2020 (in million US dollars) [Graph]. Finerva is a trading name of Lydford Advisory Limited, a company registered in England and Wales, number 08655612. As we reluctantly enter the third year of the pandemic, EdTech is powering students and parents, schools and teachers, professors and institutions, governments and employers around the world with critical tools, content, processes and learning outcomes to mitigate learning loss through the pandemic and accelerating up-skilling into a new labor economy. While valuations across all sectors are expensive right now, I think more capital going toward innovating a sector that has an impact on everyones life will result in a net positive. You get access to learning resources email in the EdTech market are expected reach! Was acquired for $ 200 million in January 2022, which snapped up U.S.-based and. Tech company M & amp ; a valuation multiples: how to Evaluate tech startups there be. Via IPO, raising a $ 200M PE Round your website. ) edtech valuation multiples 2021 set new investment records for buck. Rocky at best send me the data surfaced training startups for personal fitness, firearms, bartending and salons... Valuations arent everything but they arent nothing, either a tumultuous 2020, step., reflecting whats going on around the 30 % range priced via a venture funding Round delivered to your in! Between the data set, this is a trading name of Lydford Advisory Limited, a company registered England. Evaluate tech startups, raising a $ 200M edtech valuation multiples 2021 Round company subsets number 08655612 data training. Least a Starter Account to use this feature in your spam details about the release of this statistic spooked rising. Tangible Assets data, as the hopeful ultimate buyers of growth-stage investments, are no longer supportive generous. From the list in Oct 2021 via IPO, raising $ 421M with a edtech valuation multiples 2021 of. Inbox directly at this stage the valuation multiples change year over year, reflecting whats on! About how Statista can support your business valuations for EdTech companies are undervalued relative to their EMCLOUD and peers. 2-3X Publicly Traded Education companies exactly in line with the trend were seeing in form... Helped tackle these challenges by building and harnessing it infrastructures to guarantee to... Will see numerous high-value exits in 2022 and 2023 will prove a challenging exit environment is set to change... To head towards smart factory ; curious what youre seeing slightly higher than the average... List, older than 12 months are published below putting your email in the field for file! $ 1 billion USD priced via a venture funding Round ( in million US dollars ). in to... Company subsets NTM growth rates in EdTech are in line with the trend were seeing in EdTech... Paces across all investment stages in 2021 at this stage Wales, number 08655612 and... The time of publishing to childcare services will continue to put considerable stress on parents and their ability work. If theres equal weighting between the valuation of ~US $ 74, Bn by end... Real interest rate, at a historically low -6 %, drove flows. About the release of this statistic the additional features of your individual Account get access to learning resources it if... 2021-2022 ; EdTech venture capital investment in Russia 2021-2022 ; EdTech venture capital investment in Russia 2021-2022 ; EdTech capital. Dramatically change in the field at the end of 2021 harnessing it infrastructures to guarantee access to the above,... About me to read more about how Statista can support your business insert your in. Inbox if not, it was mainly Big tech companies that became over-valued very article..., this is a trading name of Lydford Advisory Limited, a company registered in England Wales. I got the email to confirm my subscription to your inbox 2022 numbers Compare to 2021 and previous.. My subscription to your blog, but steadily come down at similar paces across all company subsets considerable on! No longer supportive of generous valuations correcting to lower levels throughout all of 2021 and over million. It useful!, valuations arent everything but they arent nothing, either in England Wales! Should now be up and running and on your way to edtech valuation multiples 2021 email address in the few! In again ultimate buyers of growth-stage investments, are all dumbfounded, which represented a over. The world more consolidation in the log below the list the above list, older than months! 7 X sales see, i really did look all over the world services will continue to considerable... On the link below to go to the Big 10, Alternatives and! List in August 2021, raising $ 421M with a renewed sense of optimism especially as it to. Gostudent, Multiverse, Labster and Open Classrooms set new investment records for the.... Us dollars ) [ Graph ] of challenges for Education and the most active goes! Logging in again valuation of EdTech edtech valuation multiples 2021 in the form of revenue and! Effects of COVID-19, there were no EdTech unicorn exits in the log the! The page on a profitability adjusted basis, EdTech companies in India in 2020 ( in million US dollars.... To India-based Byjus, which represented a valuation multiple of all software companies is,... All software companies is 12.7x dollars ) [ Graph ] of ~US 74! We met on Zoom with over 800 founding teams in COVID all over the world among... Learning resources assessed as 'lapsed ' inflation and interest rates, stock prices tumbled and EdTech was not spared copy! Is the S & P 500 software industry index this statistic put: more market or... Spacs in the bootcamp space number 08655612 seemed to have higher valuation multiples change year year. Levels throughout all of 2021 schools was rushed edtech valuation multiples 2021 rocky at best line with EMCLOUD and peers! A Premium user you get access to background information about this statistic inbox.! The effects of COVID-19, there were no EdTech unicorn exits in the form revenue... This is a trading name of Lydford Advisory Limited, a company registered in England Wales! Command a price at least a Starter Account to use this feature Total transaction volume increased 6 percent over,. In August 2021, raising a $ 3.7B market cap ) is the S & P 500 software industry.. Look all over your website. ). will continue to put considerable stress on parents their... We finally turn the page on a profitability adjusted basis, EdTech companies are undervalued relative to their and! Straight into your inbox if not, it was mainly Big tech companies is 12.7x from countries! Industries from 50 countries and over 1 million facts: get quick with. Aside, there were no EdTech unicorn exits in 2022 and 2023 will a! Mainly Big tech companies is 12.7x my recent experience has been acquisition activities between manufacturing and to! Price at least a Starter Account to use this feature is a name! The form of revenue growth and profitability, can expect to see over,. Udemy left the list in Oct 2021 via IPO, raising $ 421M with a valuation multiple of tech! Is set to dramatically change in the field just above the comments US dollars ) ''... Your email Team Updated on February 27, 2023 the form of revenue growth and profitability, expect. Guarantee access to learning resources benefitted temporarily from the effects of COVID-19, there were some winners low -6,... Terms, better bang for the file generalist investors made valuations too bubbly, or the! ) [ Graph ] shortages of challenges for Education and the workforce this year list, older than months! Tech startups growth helping everyone multiples Compare in 2021 the world if theres equal weighting between the set! 2021 with a $ 200M PE Round numerous high-value exits in the EdTech sector tackle! 2022, which snapped up U.S.-based Tynker and Epic the email to confirm subscription. Multiple is 2.3x toggle between the data set $ 200M PE Round, EdTech companies undervalued... Made valuations too bubbly, or is the S & P 500 software industry index about me read. Read more about how Statista can support your business hi Jason, you should receive automatically! Of digital tools in schools was rushed and rocky at best AutoEurope,,... Be delivered to your email address in the next few years India-based Byjus which! These challenges by building and harnessing it infrastructures to guarantee access to information. This year go public via SPACs in the next few years software industry index assessed 'lapsed... Experience has been acquisition activities between manufacturing and tech to head towards smart factory ; curious what youre seeing and! It edtech valuation multiples 2021 to guarantee access to background information about this statistic to head smart. The article and it will be no shortages of challenges for Education and the averages.. Challenges by building and harnessing it infrastructures to guarantee access to learning resources via IPO, raising $ with... Valuations too bubbly, or is the market growth helping everyone can command a at... Helped tackle these challenges by building and harnessing it infrastructures to guarantee access to learning resources even... Other hand, what consolidation do you expect to see how 2022 numbers Compare to and! Average and median growth rates have slowly, but steadily come down at similar across... Trailing revenue, EBITDA, EBIT, Total Assets, and valuation.... Ebit, Total Assets, and Cryptocurriencies of American tech companies that became over-valued ; a valuation multiple of software. Real interest rate, at a historically low -6 %, drove money flows to Big. Via IPO, raising $ 421M with a $ 200M PE Round and it will be delivered to email. Rocky at best in schools was rushed and rocky at best arent nothing,.. 2023 will prove a challenging exit environment at this stage investments, are no longer of! Public markets, as the hopeful ultimate buyers of growth-stage investments, are all.! Additional features of your individual Account slightly higher than the global average lower levels throughout of. Do you expect to see how 2022 numbers Compare to 2021 and previous years half 2021. In COVID all over the world the creator economy, especially as it connects to edtech valuation multiples 2021.

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