You can receive it directly to your email by putting your email in the field just above the comments. EdTech Valuation Multiples: How to Evaluate Tech Startups. Lovevery, a maker of physical and digital activities for toddlers, raised $100 million after a year of rapid subscription growth. The average revenue multiple for small tech companies increase slightly as their market cap increases, from 2.2x to 2.6x. Indian edtech startups have raised about $4 billion since 2020, of which $2.2 billion was raised in 2020 and $1.9 billion was raised between January-August 3, 2021. IPO date: Jan. 13, 2021; IPO price: $49; IPO valuation: $11.9 billion; In the first venture-backed tech-ish IPO of the year, Affirm saw its stock price jump 100 percent on its first day of trading before closing out at $97.24. In three other cases that. It should be in your inbox. The overall sales in the market are expected to reach a valuation of ~US$ 74,239.7 Million by the end of 2021 and US$ 288.4 Billion by the end of 2031. And the most active buyer goes to India-based Byjus, which snapped up U.S.-based Tynker and Epic! The SaaS buying sprees of 2020 and 2021 have led to tech-stack fatigue, and IT departments are feeling the pressure of managing a complex and diverse set of tools and justifying ROI. if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[320,100],'microcap_co-large-leaderboard-2','ezslot_21',110,'0','0'])};__ez_fad_position('div-gpt-ad-microcap_co-large-leaderboard-2-0'); Then, we saw a huge pull-back for big tech companies at the end of 2022. Then you can access your favorite statistics via the star in the header. 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. Journalism that ignites your curiosity about education. Are you able to pass it along? 2020 set a new EdTech record by China, investing over $10B of venture capital into the sector in a single year, and capturing the worlds attention as Chinese EdTechs commanded billion dollar plus funding rounds. 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! Accounting for deals in every adjacent sector would push the total investment figure well beyond $8 billion. Valuations for EdTech companies rose throughout 2020 before correcting to lower levels throughout all of 2021. You need a Statista Account for unlimited access. 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. Microcap companies actually saw a decline. Ed-Tech Industry #2 - What's it Worth? The startup's founder, somewhat reluctantly and almost bemused, agreed to raise money, but at nearly double the valuation in six months. Thanks Sandeep! Here is a snapshot of how the microcap software companies were doing in March 2019.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[250,250],'microcap_co-leader-1','ezslot_5',111,'0','0'])};__ez_fad_position('div-gpt-ad-microcap_co-leader-1-0'); Back in March 2020, we saw a huge dip in the market after the Coronavirus hit the US and it became a reality that we would be experiencing the same quarantine as we saw in Asia and Europe. The 20 largest deals of 2021, which accounted for two-thirds of the $8.2 billion raised, were spread across all these sectors. The complete list of Global EdTech Unicorns. Very much agreed if I had the resources to update these multiples more often, they would be way more useful indeed! Corporate training continues to capture the lions share. While drastically lower than pandemic levels, this is still a rather healthy figure for EBITDA multiples, indicating that investors chose to reward companies that managed to maintain high profit margin throughout and after the pandemic over those where profit couldnt keep up with revenues. What do I do now? Overall, 2023 EBITDA multiples are 20% to 40% lower than 2023 EBITDA multiples for software companies. "Valuation of edtech companies in India in 2020 (in million US dollars)." I think investors from, novice to pro, are all dumbfounded. If you are an admin, please authenticate by logging in again. Accessed March 01, 2023. https://www.statista.com/statistics/1226925/india-valuation-of-edtech-companies/, IVCA. On rare occasions, it takes a few hours or a day for the email to go through after putting your email in the field. 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'. Median EV/Revenue Multiples for EdTech Companies EV/Revenue Multiple Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 0x 2x 4x 6x 8x Source: YCharts As of March 1, 2023, there are now 30 EdTech Unicorns around the world, collectively valued at $89B. Your submission has been received! In the old dogs new tricks category, my firm is now actively pursuing more software companies to represent. It looks like its not just a small glitch but an overhaul I have to do to fix this issue. . If theres equal weighting between the valuation methodologies, the company can command a price at least 10% higher. We can see similar trends for other sectors that were boosted by the pandemic, such as Cyber Security. Thanks for reading as always and leave a comment if you found it useful! Thanks for your comment, Alyssa! U.S. Valuation Multiples by Industry Jul 2021 2021 U.S. Valuation Multiples by Industry Edtech valuations aren't skyrocketing, but investors see more exit opportunities 13 VCs discuss how their deal-making has changed in the last year Natasha Mascarenhas @ nmasc_ / 6:37 AM PST . The Great Resignation saw 4.5 million Americans quit their jobs in the last two years, and employers are increasingly looking at skills training and skills based hiring to help fill these open positions. How has edtechs boom impacted your deal-making? At the end of 2021, we saw the valuation multiples of software companies get recalibrated. to incorporate the statistic into your presentation at any time. The deal will give Nerdy a valuation of $1.7 billion, making it the first billion-dollar technology company based in St. Louis, according to the St. Louis Post-Dispatch. yes pls send 600 company data set as you mentioned. In higher education, companies like Course Hero are scaling quickly to meet students appetite for digital study resources. That may seem like a tiny sliver. Also do you not think its the case that there could be tech software bubble in the potential medium term? Thanks for such an insightful share! : The pandemic-accelerated adoption of digital tools in schools was rushed and rocky at best. Edtech and IPOs went together in 2021 like two people kissing in a tree, as the kids would say. Spooked by rising inflation and interest rates, stock prices tumbled and edtech was not spared. But one speculation is that its because government bonds arent worth returns, and so. First came Coursera, then came Duolingo, then came Nerdy with a special-purpose acquisition company deal valued at around $1.7 billion.. As a Premium user you get access to the detailed source references and background information about this statistic. Prior to joining New Markets, Jason served as Deputy Director at the Bill & Melinda Gates Foundation and held a series of executive positions at Microsoft, SchoolNet and Kaplan. Whats attracting them? Thanks! We provide enterprise value multiples based on trailing Revenue, EBITDA, EBIT, Total Assets, and Tangible Assets data, as reported. Thanks Max! Looking for car hire in Santo Antnio (Lisbon)? Hi Jason, you should receive it automatically if you put your email in the field for the file. There are important TAM, business model, pedagogical and regulatory factors to consider in valuation. It would be great to understand where this data is coming from. Click on the link below to go to the post. (If it you dont receive it, it mightve ended up in spam.). Please create an employee account to be able to mark statistics as favorites. Join our community of 3,000 + Founders, Entrepreneurs & Advisors. From distance learningwhich all kids became familiar with last yearto online subscription-based courses focused on self-paced professional development, most of us experienced some form of tech-enabled education during the COVID-19 pandemic. On rare occasions, it takes a few hours or a day for the email to go through after putting your email in the field. Our valuation multiples are categorised by sector and standard industry classification ("SIC") codes. I have been tracking valuation multiples for tech software companies since 2019. Can you please send me the data set? Cheers-. 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. Empowering educators and families. The consumerization of teaching and learning. 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. Less than a year after we put out an initial temperature check survey, its clear that specialist investors are even more bullish on edtech. Edtech has had plenty of exits, but they are usually smaller and typically to PE firms or companies that have large distribution channels. But overall, it seemed to have an opposite effect for microcap companies. However, it was mainly big tech companies that became over-valued. Bears are hard to find right now: the sector, once undercapitalized, has brought in $10 billion in venture capital funding globally in 2020. The green line (lower) is the Nasdaq US Small Cap Software companies index. By Editorial Team Updated on February 27, 2023. 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