Dive Brief:
- Despite the record-setting level of investment pouring into the education technology space, the ed tech sector hasn’t entered bubble-ready-to-burst territory, according to analysts, consultants, and entrepreneurs in the space.
- Citing figures from PitchBook, Inside Higher Ed reports that ed tech experts believe that the market is still flush with opportunities for fledgling ed tech companies — though it will be difficult to predict the winners and losers.
- Ed tech venture capital investments topped $500 million in the first quarter of 2014, following two years of more than $1 billion invested in ed tech companies.
Dive Insight:
The fact that so many ed tech companies have remained competitive, with no clear winners emerging to dominate, helps to keep the venture capital spigot flowing. An analysis of PitchBook data shows that 17 companies in higher education tech have received significant initial investments — excluding seed money — so far in 2014, compared to 25 for all of 2013. The number of companies receiving follow-up rounds of investment indicates that investor interest isn’t waning.
