Lawyers, consultants, others advising education companies say there are clear steps businesses can take to protect their intellectual property abroad.
EdWeek Market Brief talked with two tech-savvy students about where digital products meet their needs, and fall short.
Edulastic describes itself as a next-generation formative online assessment platform that helps teachers quickly identify learning gaps, give students differentiated assignments to meet individual learning needs, and monitors students’ progress on the way to standards mastery.
The acquisition will advance Los Angeles-based GoGuardian’s mission to create the “ultimate learning platform,” the announcement says.
“Gauging student understanding is a vital element of effective teaching and learning. The Edulastic team has created sophisticated, data-driven solutions that provide teachers with real-time, actionable insights that support great teaching and improved outcomes,” GoGuardian co-founder and CEO Advait Shinde said in a statement. “We couldn’t be more excited to welcome the talented Edulastic team into the GoGuardian family.”
The companies estimate that the acquisition will allow their combined platform to reach one out of three K-12 students nationwide. GoGuardian already serves over 20 million students in more than 14 million schools, and Edulastic is used by more than 9 million students at more than 19,000 schools, according to the announcement.
“Since our founding, Edulastic has been on a mission to deliver insights that help teachers teach and help students learn,” Edulastic co-founder and CEO Madhu Narasa said in a statement. “GoGuardian is a natural fit that will accelerate our mission and expand our ability to serve educators, now and long into the future.”
The acquisition was led by GoGuardian and Sumeru Equity Partners, a technology-focused growth capital firm that first invested in GoGuardian in 2018. Edulastic is backed by early-stage venture capital firm Primera Capital.
Austrian tutoring startup announces investment, ‘unicorn’ status. After receiving a $244.4 million Series C investment led by DST Global, GoStudent announced it is Europe’s latest ed-tech unicorn and the highest-valued ed-tech company in Europe, according to an announcement.
The company is now valued at $1.7 billion, or €1.4 billion.
GoStudent, which is based in Vienna and provides one-to-one video-based online tutoring, also saw investments this round from SoftBank Vision Fund 2, Tencent, Dragoneer, Coatue, Left Lane Capital, and DN Capital.
The investment will be used to drive global expansion, according to the announcement. GoStudent is currently used in 15 countries, has expanded its team to more than 500 employees, and has opened 12 new offices, adding new locations in Athens, Istanbul, and Amsterdam.
The company aims to be present in over 20 countries by the end of 2021, planning to launch in Canada and Mexico this summer, and also intends to invest in branding, product development, and company acquisitions. GoStudent will also double its team to over 1,000 employees this year, the company said.
GoStudent grows by a rate of approximately 30 percent month-over-month, according to the announcement.
“At the heart of GoStudent is our mission to build the No. 1 Global School,” GoStudent co-founder and CEO Felix Ohswald said in a statement. “The new investment and the resulting opportunities for continued international growth bring us one step closer to fulfilling our mission.”
The announcement doesn’t give a specific figure, but refers to the infusion as a “growth investment” that will allow Revolution Prep to expand its offering and increase access to world-class online tutoring.
The investment will enable Revolution Prep to make professional tutors available to more students in the U.S. and beyond, the announcement says. Over 1 million families have used the service.
“The pandemic has accelerated the shift from traditional to online learning and we’re continuing to see strong demand even as society is re-opening,” Revolution Prep CEO Matt Kirchner said in a statement. Apax Digital’s “investment will support an acceleration of our key growth priorities, including scaling up the more affordable small group tutoring format and the strategic expansion into the middle school tutoring segment, supporting families earlier in their academic journeys.”
Apax Digital Fund was attracted by Revolution Prep’s “cutting-edge” technology platform, longstanding partnerships with schools, and breadth and expertise of its tutors, Marcelo Gigliani, managing partner of Apax Digital said in a statement.
Lincoln International was the exclusive financial adviser to Revolution Prep in connection with the transaction.
ETS Strategic Capital and GSV Ventures invest in Degreed. Princeton, N.J.-based ETS Strategic Capital, the venture capital arm of research and assessment organization ETS, is joining GSV Ventures to invest in Degreed, a workforce upskilling company used by about one in three Fortune 50 companies, according to an announcement.
The investment is aimed to continue to advance and grow ETS’s educational business and mission through high-growth dealmaking, the announcement says.
“Our investment in Degreed will help us to continue to leverage high-growth companies who are aligned to the business and mission of ETS and grow globally as an organization,” Ralph Taylor-Smith, managing director of ETS Strategic Capital, said in a statement. “The corporate learning, workforce development and reskilling/upskilling sector is a key new business growth area for ETS.”
The announcement cites a study by Statistia showing that $82.5 billion was invested in workplace training in the U.S. in 2020.
An EdWeek Market Brief survey looks at the pace at which district administrators will use money from the two most recent federal emergency relief packages.
Investors are betting big on K-12 education companies after the global pivot to remote learning last year, and now ed-tech firms are looking toward the public markets in potentially greater numbers than ever before.
Ed-tech companies traded on the U.S. public market are rare, and even more so in the K-12 space.
ETS announced this week that it acquired the testing assets of its longtime partner in providing English language learning tests in Japan, the Council on International Educational Exchange.
With the purchase, the nonprofit based in Princeton, N.J., will establish a new subsidiary, ETS Japan, to take over the operations and support services provided in the country.
The move supports the organization’s interest in growing internationally by establishing its own footprint in Japan, said Ralph Taylor-Smith, Managing Director of ETS Strategic Capital, the investment arm of the research and assessment entity. For the last 40 years, ETS tests and other products have been administered in Japan through CIEE.
“We already have business in the country,” Taylor-Smith said in an interview. “But this allows us now to start to expand our global reach, and really gives us a footprint to start to build other areas… Having people on the ground really gives us that local presence and local reach.”
Founded in 1947, ETS is one of the best-known providers of testing in the United States and abroad. Their tests include statewide summative exams, graduate-school entry tests, and tests of English-language proficiency.
With the acquisition, the company will work to provide a complete experience for students, according to an ETS press release, including helping students prepare for the Test of English as a Foreign Language (TOEFL) exams and GRE graduate school entry exam.
Taylor-Smith declined to reveal the total cost of the TOEFL acquisition deal.
This is the latest in a string of purchases and investments for ETS Strategic Capital, which was announced in September 2020 with a portfolio of five companies. The venture capitalist arm of ETS now has a portfolio with closer to 10 companies, Taylor-Smith said.
EdWeek Market Brief previously reported that the investment arm’s M&A deals were expected to range from $20 million to $200 million in size, and its equity investments could run from $1 million to $20 million.
The ETS program’s growth comes as venture capital investment in education surged. Investors put more than $16 billion into ed tech in 2020, according to a report by HolonIQ. That’s roughly double the amount put forward in 2018.
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An EdWeek Market Brief survey of district and school officials finds many predicting that the number of students being forced to repeat courses after this year will jump.
As students in many states return in person to classrooms, executives of education technology companies say they are dealing with a market that has been altered in a number of key ways.
Gov. Gavin Newsom’s is calling for channeling $115 million to openly licensed resources at the college level, an effort that some advocates say could shape K-12 materials, too.
Businesses in the education market face new and unfamiliar obstacles in delivering product support and professional development that spans remote, hybrid, and in-person learning environments.