Venture investment in K12 education technology was up 6% in 2013, totaling $452 million. Over half of these investments were seed stage transactions mirroring the overall venture trend of increased financing from non-traditional sources (angels, super angels, micro-VC’s, incubators) at the seed stage.
The NewSchools Seed Fund led and/or participated in nearly a quarter of the 59 K12 edtech seed investments in 2013. Here we share our 2013 analysis of K12 edtech venture funding. Please note that in this analyses we do not include companies exclusively focused on higher ed nor do we include corporate training – both categories represent relatively large VC funding sectors. Our focus is on companies serving the preK-12th demographic--both inside and outside of schools.
A quick note on categories:
Whereas last year there was a clearer delineation between companies servicing schools and those focused on consumers, we’re finding that line is growing more porous all the time. Consumer products are flowing into schools and visa versa.
A few notes on categorizations:
Direct to Learner: consumer applications that exist wholly outside of school with little to no footprint inside of schools. This category does not include companies that are adopted by teachers and monetized by parents. Primary user and payer is the consumer, e.g. Learnhive, Little Bits.
K12: content, platforms and tools used in schools and/or adopted by teachers. Primary user may be teacher or student. These products could be monetized by schools, districts and/or parents. This category is growing quickly as schools rapidly integrate technology, e.g. Brightbytes, Class Dojo.
Early Learner Tools: consumer applications focused on pre-kindergarten demographic, e.g. Kidaptive.
College Readiness & Application: tools focused on preparation and application for college, e.g. Pathbrite.
Tutoring/Test Prep: preparation for high stakes testing and/or individual tutoring, e.g. InstaEdu.
Editor’s Note: This blog post was originally published on the NewSchool Venture Fund site and can be found here. NSVF is an investor in EdSurge.