Investment in educational technology has exploded over the past few years, with ed tech companies raising more than $1.36 billion in 2014, according to an Edsurge analysis.
This figure accounts for 201 rounds of funding that raised money from nearly 400 unique investors. The largest deals were made in the areas of curriculum products, teacher needs, school operations, post-secondary and “other.”
The Edsurge analysts believe that this investment will continue, with more early stage funding. They also predict that for companies that are unable to raise Series B funds, there is likely to be “a wave of acquisitions, mergers, and pivots.”
Finally, the analysts suggest that due to factors including improved hardware and software, and larger user communities, 2015 will be the year we see “whether today’s seed recipients can make the jump from startups to sustainable companies.”
So, where will the money go?
Here are two major areas that may prove to be hot for ed tech investment in 2015.
Products for use in K-12 classrooms
Of the $1.36 billion invested in ed tech last year, only $642 million went to products for the K-12 market. The rest went for post-secondary and beyond.
Although it was represented less than half of the total investment, the $642 million was a 32 percent increase over 2013.
Stanford mathematician Keith Devlin observed, “In 2014, a few of Silicon Valley’s top-tier venture investors dipped their financial toes into the K-12 market for the first time in over a decade, putting funds into companies such as Remind, Edmodo, BrightBytes, and Clever.”