Investment in education technology is at a new high.
In the first half of 2015, venture-capital funding in ed tech totaled well over $1 billion. CB Insights, which tracks investments in private companies, puts the number at $1.4 billion. EdSurge, an education-technology reporting website, estimates that the investments total $1.6 billion.
While the figures aren’t identical, analysts at both companies agree: Investment in education technology is growing steadily, and this year is no exception.
"We’re seeing a huge surge in ed-tech funding in the last couple years specifically," said Nikhil Krishnan, an analyst at CB Insights. "Slowly, people are starting to see that ed tech is a very viable investment."
Last year The Chronicle created a list of the 10 best-funded higher-education tech companies, according to EdSurge's president, Tyler McNally. This year we asked Mr. McNally to update the list and take a look at what’s changed.
Many companies on the list — like Instructure or 2U — work with traditional universities, Mr. McNally said. But nontraditional companies operating outside of universities — like Pluralsight or Udemy — are gaining ground. That’s especially true considering that students in nontraditional programs like coding boot camps will soon have access to federal financial aid. "It’s certainly interesting to see the federal government playing a role," he said.
In the future, Mr. McNally said, companies’ success will be largely determined by the students who use their services. "In K-12, decisions are made by administrators, and the students follow along," he said. "But in higher ed, there’s a much more important role for the agency of the student — and I think companies will need to pay attention to that."
Here's his updated list:
Funding to date: $165,000,000
What it does: Pluralsight offers video training courses for software developers and IT professionals.
Funding to date: $165,000,000
What it does: D2L develops learning-management systems.
Funding to date: $146,000,000
What it does: Coursera works with universities to offer massive open online courses.
Funding to date: $116,100,000
What it does: Kaltura produces a video platform that helps users publish and manage their video content.
Funding to date: $113,000,000
What it does: Udemy offers users the ability to create their own online courses, which are run through the company’s platform.
Funding to date: $105,000,000
What it does: Knewton is an adaptive-learning company that works with schools and publishing companies.
Funding to date: $95,900,000
What it does: 2U works with universities to offer online degree programs.
Funding to date: $95,000,000
What it does: The Minerva Project provides technology for the Minerva Schools at KGI, an undergraduate program aimed at students in the developing world.
Funding to date: $93,400,000
What it does: Yuantiku offers students access to practice tests, along with analysis based on their performance.
Funding to date: $79,100,000
What it does: Instructure develops learning-management systems.