Venture Capital has been fueling global growth in EdTech and 2020 will likely see more than $10B back the sector. The first three quarters have already seen a record $8.3B of VC investment. China retains the lead, and perhaps momentarily thanks to ByJu's, India takes second place ahead of the US. These three markets alone make up 90% of total global EdTech investment.
EdTech started the last decade with $500m of Venture Capital investments in 2010 and finished 14x higher at $7B in 2019. Through COVID, EdTech attracted $8.3B of VC through the first three quarters of 2020, setting the sector up for a record-setting full year.
$5.1B of the $8.3B was invested in 23 Mega Rounds (> $100M). This is approximately half of all EdTech mega-rounds in the prior five years.
Q1 included a giant $1B Yuanfudao round and $400M of ByJu’s funding. Q2 was slower with Zuoyebang closing $750m in last few days of the quarter. By Q3, ByJu’s had closed another $500m, Zhangmen $400m and VIPThink $200m.
