EdTech Booster

EdTech Startup Trends to Invest in 2022
Hi! It’s EdTech Booster Capital.
Our online event is taking place very soon, while you are waiting for it, we would like to tell you about the trends in EdTech startups.
What areas of EdTech are currently the most profitable for investment?
1. Tech-Enabled Immersive Learning: Extended reality (XR) is an umbrella term for augmented reality, virtual reality, or the combination of related technology with the real environment.
2. Innovative K-12 Homeschooling Startups
3. E-Learning
4. Accessible Education
5. AI-Enabled Adaptive Learning
6. Gamification
7. Google Everything
8. Accelerating Investments in EdTech
From AI-powered learning to E-Learning, from PreK-12 to adult learning and more. Many of these trends are poised to disrupt the field of education as we know it.
These are the main trends of 2022.

Successful EdTech startup ABA English: Pioneers in teaching through video
ABA English was leading the way in digital English learning long before the 2020 shift to online learning. Founded back in the 80s, they’ve always been focused on video lessons, and their offering has evolved along with the technology, keeping them at the cutting edge of language learning.
The ABA English app combines technology, a unique video-based methodology and human interactions with certified teachers and tutors to improve students’ English. The product has won the Best Educational App at the Reimagine Education Awards twice in the last five years

Successful EdTech startups Immerse: An edtech startup transforming English language learning through virtual reality

Virtual reality and language learning come together in this offering from edtech startup Immerse.
Their platform allows students to practise their language skills with structured learning experiences. Equipped with a VR headset, students use avatars to communicate and practise their English through a range of topics and themes. Immerse was launched in 2017 and recently completed their Series A investment round.
After a year of school shutdowns and learning from home, their product is more timely than ever. “In a time where isolation keeps us safe” said co-founder Quinn Taber, “giving both young and old learners that connection is incredibly important for both learning, as well as mental health.”

How a venture fund works
Venture investments are long-term - they usually invest for 7-10 years. Sometimes for longer, when the stage of development of an innovative project is delayed. The amount of investment depends on the stage of the company's life cycle. At an early stage, it can be from $10,000 to $1 million.
In the later stages, stakes increase to $1–3 million, as only those startups that have managed to prove their relevance and viability in the market survive to this stage. Although recently, against the backdrop of a general increase in investment in innovation, even at an early stage, the maximum checks have increased to $ 5–10 million.
One example is Gorillas, a startup with a 10-minute delivery concept that was raising $3-5 million early on.
The portfolio of projects depends on the specifics of the fund: these can be companies at a certain stage or from a specific field of activity. For example, we invest in fast growing technology companies from Western Europe in four industries - EdTech. We go early.

INVESTORS ADORE EDTECH
$10.76 billion is a figure of record-breaking venture capital investments that took off at an unprecedented clip by 2020.
Yet on a pre-seed round, figures count $2.1 million to support Maqsad, a startup from Pakistan, aiming “to make education more accessible to 100 million Pakistani students.” It is a good ground for R&D and growth activities, isn’t it?
Leap, a US-Indian two-year-old startup focused on helping students with abroad education issues, raised $75 million in total in 2021 in Series B and C. Apart from intensive investors Sequoia Capital India and Jungle Ventures, Owl Ventures and Harvard Management Company joined the forces to supported EdTech undertaking, finding it promising.
Another example, Panorama Education, serves 25% of American schools, having backed with $60 million funding to provide an education software platform helping educational institutions to understand their K-12 students with surveys. In its turn, NoRedInk, a San Francisco-based startup, got a $50 million Series B support to help students get back on track with writing skills, which demonstrates the renewed interest of investors in the sector.

31 EDTECH UNICORNS WORLDWIDE
Unicorns are young startups that were able to reach a capitalization of $1 billion in a short time. The term itself was coined by the founder of the American fund Cowboy Ventures Aileen Lee to underscore the rarity of the phenomenon in 2013.

Note: while this overview was being composed, the world got richer for one more unicorn.

Among over 800 unicorn companies, 31 are from the EdTech sector with a collective valuation of $91 billion, which shows the big time for the undertaking. The latest members of “the nine zeros club” are Emeritus with certified education from top-tier universities, upGrad global online higher ed to accelerate career, and GoGuardian for schools’ management.

Tutoring, language learning, corporate learning, test preparation, online post-secondary and curriculum, and career planning are impressive but far from the full list of clusters where you can find yourself to hit the unicorn list.