With the long-term rise in Ed Tech investments – starting in roughly 2007 – many analysts have been predicting a fall for several years. Maybe not a bubble burst like we saw in 2001, but a real drop in activity and volume. Now we also find out that there is also a 70% drop in mergers and acquisition values for the education industry according to a new analysis by the investment bankers Berkery Noyes.

Throughout 2016 we had plenty of signs that the change was finally here. I got into the act in response to a ludicrous TechCrunch article that concluded that Ed Tech was “2017’s big, untapped and safe investor opportunity”. By the end of the year, there were several reports that investment (venture capital, private equity) had definitely gone down in 2016. Audrey Watters reported “The total dollars invested in 2016 are off by about $2 billion from this time last year”. EdSurge reported a drop of 31%. CB Insights reported a drop of 32% (based on estimates for Q4).

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