Tarun Ahir on the future of Edtech Industry
The views of Tarun Ahir on the development of the education technology industry in the future.
Investors and businesses in the education sector are cognizant of the global macro dynamics that will continue to fuel expansion, namely:
1. Population expansion in underdeveloped nations
2. Demand for instructional technology, tools, and services is increasing.
3. Increasing digitization to enhance results and productivity
4. Possibilities to address critical issues in the industry (student debt, flattening test scores)
Tarun Ahir says that how worldwide edtech market is a broad and fast growing industry with a large runway throughout the business lifecycle, from early-stage startups through middle-market businesses to publicly traded corporations. It continues to attract a great deal of interest from industry veterans as well as regular investors. Across the three primary education categories (PreK-12, postsecondary, and corporate training), technology is integrated throughout a student's life. Each category functions as its own subsegment of the edtech market, as seasoned investors are aware. Each category is distinct and has distinct end-users, buyers, and funding channels.
Due to variances in methodology and categorizations, a number of publications have issued investment numbers that can be used to triangulate the size, scope, and growth of the edtech market:
1. US education technology venture capital investment. According to EdSurge, venture capital funds invested $1.7 billion in the edtech business over 105 deals in 2019. Large Series C investments dominated these.
2. According to Tarun Ahir, investing in edtech on a global scale is preferable. HolonIQ published a research in 2019 estimating $7 billion in global venture capital funding for the education industry. Even more illuminating is the astounding growth rate of edtech venture capital funding from 2010's $0.5 billion. In addition, they forecast a tripling of investment in edtech over the following decade.
3. Global investment in education technology. Metaari reports that global private investment in learning technology suppliers totaled $18.7 billion in 2019.
4. Private equity is also interested in investing in education. In addition to venture capital investment in edtech, hundreds of private equity firms continue to be created to invest exclusively in the education business (or have articulated education as a focus industry). In addition, education is increasingly categorized as a "impact" industry, which attracts institutional investors seeking to increase their allocations to impact sectors.
5. Education companies that are publicly traded The market share of publicly traded companies in edtech is also substantial. There are 29 companies with a total market capitalization of $71 billion within this group in the United States (as of January 27, 2020).
Tarun Ahir is going to invest big amount of time and money in future edtech industry.
Tarun Ahir
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