Why some edtech investors could finally be set for a post-pandemic payday
For years, many venture capitalists were skeptical about betting on education technology startups, in large part because of a dearth of exit opportunities. Among the few notable exits by edtech startups: US-baseddebuted on the public markets with valuations of around or less than $1 billion in 2013 and 2014, respectively, while , an online learning company, for $1.5 billion in 2015. But when schools around the world shut their doors amid the COVID-19 pandemic, demand for digital education surged and investment in the sector took off at an unprecedented clip. Edtech startups collected $13.3 billion in global venture funding in 2020, surpassing the previous record set in 2018 by nearly 50%, according to PitchBook data. Meanwhile, 2U stock has roughly doubled, while Chegg stock has nearly tripled since the start of the pandemic. To read the full article, click here.