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July 10th, 2012
Venture capital funding for ed tech at ‘unprecedented’ levels, expected to rise
Investors are funding companies creating technologies for K-12 schools and colleges
Big-money investors poured more money into educational technology companies in 2011 than during the heady dot-com days of the late-1990s, according to a national market analysis that credits investor knowledge, in part, for the funding boom.
After a slump in investment capital during the mid and late 2000s, companies focusing on classroom technologies—including social media-centric solutions—are benefiting from a never-before-seen influx of funding from private investors and investment firms.
In a report released this week, “Fall of the Wall: Capital Flows to Education Innovation,” GSV Advisors, which assists education entrepreneurs and tracks investments in educational companies and products, documented a steady rise in investment that peaked last year.
Educational technology innovators received investment capital 127 times in 2011, according to GSV, well above the 106 education companies that were funded in 1999, when investors rushed to technology startups during the dot-com boom that created an economic bubble that popped in 2000.