Graph of the Week: Beware of Funding Totals

Graph of the Week: Beware of Funding Totals


Editor's Note: Data, data, data! Data in edtech can be ubiquitous, useful, and…overwhelming. But don’t worry! We're trying to make sense of data too, and we’ve made it our mission to help you understand it a bit better. One of our many 2015 resolutions: bringing you a “Graph of the Week,” examining how data can be used to help inform decisions.

Reporting on edtech VC funding is one of our hobbies here at EdSurge. Every month we report on the total VC funding coming into the US edtech industry. This monthly total is an important indicator of the strength of the industry.

But can we use the total to show the "typical" size of an edtech deal that month? Not really. Take a peek at how much the biggest deals of the month swamped those monthly numbers: 

The graph below shows the percentage of total monthly funding (y-axis) by the largest x deals of the month (x-axis) for September, October and November of 2014.  

The rapid growth and long tail of each month's data is a big reminder that in this industry, the vast majority of each month's funding comes from just a few deals: It took just 4, 6, and 5 deals to top 80% of the month's deals in September, November, and October respectively.

Source: EdSurge.  See full size image.

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