Contact

Investing in Educational Technology: less money for more operations


,
Integral service around a transaction
BY : Diego GutiérrezJuly Fri, 2013

venture capital isAccording to CBinsights analysis of 2012, VCs, angels and large corporations invested almost 1,100MM$ in educational technologies. During the first half of 2013 the number of deals has increased (10%) although with a lower volume of money invested. This is due to the increase in seed stage and early stage investments, which account for 50% of the deals and 30% of the amount invested.

26% decrease in invested volume

During the first half of 2012, 650M$ were invested, which compared to the 481MM$ invested in the second half of 2013 has meant a significant drop of 26% of the total invested.

"The big corporations are very active in educational technology investments. The most active have been Pearson, Backboard and McMIllan. They are the most frequent exit for startups in the sector," says Diego Gutierrez, corporate finance expert at ABRA INVEST.

Baker Tilly International's Venture capital more active

As expected, the most active VCs in the sector consist of funds focused on early stage companies or with sector specialisation. The five most active VCs were: Newschools venture fund, 500 startups, Felicis Ventures, Y combinator and New Markets Venture partners.

"New specialised funds have also emerged. One example is the Rethink educationfounded in early 2012, which has already invested in companies such as Hapara, EverFi and Smarterer," says Diego Gutierrez.

The largest operations

In January 2013, a large operation in excess of 100MM$ took place in Lynda.com by Accel Partners and Spectrum Equity. It looked like a premonition of bigger deals in 2013, which have so far failed to materialise.

The M&A Professionals

Meet our services

CONTACT US

MEET
OUR
METODOLOGY

Do you want to be up to date?

SUSCRIBE OUR NEWSLETTER

Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?

M&A NEWS
INDUSTRIAL REPORTS
crossmenu