Edtech backers rewarded as IPO pipeline heats up
Edtech company IPOs used to be practically nonexistent—until this year.
Increased adoption of online learning technologies amid the pandemic, combined with strong public market conditions, has paved the way for a bevy of notable public exits in the category.
Learning platform debuted on the NYSE in late March with a valuation of over $4 billion. A few months later, foreign language education app Duolingo hit the Nasdaq with a valuation of $3.7 billion. And just last week, , an education marketplace that offers online classes focused on business and technical skills, went public with an initial market value of more than $4 billion.
In the meantime, Nerdy, the parent company of Varsity Tutors, went public via a SPAC in a deal valued at about $1.7 billion. And PE-backed PowerSchool, a software company serving K-12 institutions, was valued at roughly $3.5 billion following the pricing of its IPO.
These are significant outcomes for any newcomers to Wall Street, but especially for a sector that struggled to gain wide acceptance among venture capitalists before the pandemic.
To read the complete article, click here.