Q3 2018 EdTech Deal Flow Snapshot
Global EdTech Deal Volume has skyrocketed in Q3 2018, now approaching two US$5m+ EdTech deals every day around the world. An EdTech Investor panel in New York this month boasting GSV, New Market Venture Partners, ReThink, University Ventures and hosted by SJF Ventures remarked that it has never been easier for EdTech entrepreneurs to raise money, or harder for investors to compete for deals than it is today.
Q3 2018 saw 75 EdTech deals at or above US$5m, smashing the Q4 2015 record of 55 deals and Q4 2017 record of 52 deals. In fact, Q4 has been the record quarter for every year bar one of the last six years, suggesting 2018 may well beat every year since the 2015 record by at least 60 deals if it comes in at the same level as Q3, let alone eclipses it.
China is, of course, the main driver of the growth in deal volume, the UK has really started to kick in, India as well and the US shows strong steady growth.
Education IPOs are at an all-time high as well with over 20 companies listing in the last 2 years, one every month with a strong pipeline of at least 10 companies lining up to list in the US and Hong Kong over the next 12 months as well.
But how long will this all last? Everywhere we go people are wondering whether a US recession is six months or perhaps three years away so the advice seems to be to get into gear and raise asap!
We will be deep diving into these investment trends and more at our invitation-only executive roundtables through November/December in Beijing, New York, DC, San Francisco, London, Sydney and Melbourne. If you are a senior executive or investor and are not already attending, you can request an invitation here.