Education Technology & eLearning

Tristan Snyder, Partner

Ben Howe, CEO
Jon Guido, Partner / COO
Mike Parker, Partner
Sean Tucker, Vice President
 Massive $157B Market Expanding Globally

 At $157B in size and expected to reach $420B by 2025 (15%+ CAGR),

Education Technology is a massive market that continues to expand on a 2025
global scale
 In first world countries such as the US with high cost delivery models,
EdTech’s potential to unlock huge budgetary savings for governments and
households alike is a powerful driver of continued adoption USD 420
 In developing countries seeking to close the gap in language and IT
proficiency with the rest of the world, the focus is more on access
› eLearning has huge potential to educate these rapidly growing
populations in lieu of a highly developed school infrastructure
 Lastly in the corporate sector, where professional training has long been
viewed as a discretionary item subject to booms and busts in economic
US EdTech Deals by Quarter
cycles, eLearning is gaining significant traction as a “must have” for many
employers in a historically tight labor market
 Innovations in the EdTech space at large include: Travel Tech Ecosystem
› Microlearning - a top trend as more evidence builds that breaking
down and spacing out learning content into smaller bite pieces can
lead to higher rates of engagement and retention
› Interactive Video-Based Training - with over 55% of the world’s
population connected to the Internet through smart mobile devices and
5G looming, this is an area of explosive growth with highly visibility
› AI, AR/VR, Adaptive Learning, and Gamification – these new
technologies and methods are converging to deliver more
personalized and exciting new training experiences for eLearners
 Armed with these new innovations, investment in EdTech has gone viral
and global in the last few years with each major region vying for control of
the digital economy of the future
› In non-US markets, funding for EdTech start-ups has surged, reaching
a new record of over $5B in 2018
› Not to be outdone, US deal flow has exploded in 2018 at $8B in M&A
value in 2018 with a heavy mix of PE-led deals

Source: Wall Street Research, Docebo, Grandview Research 2

 Market Segment Overview

Three primary categories, and a handful of market titans:

Content: provide the tools to author the material, aggregate and develop content from disparate sources, and publish

Management: facilitate, organize, analyze and administer educational coursework and material for students and teachers

Distribution: make educational content more accessible and engaging through online, gaming, and immersive learning
techniques

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Academic EdTech Landscape

Education Giants

Content Providers Management Systems Distribution

Indicates public companies or subsidiaries DISCLAIMER: This is only a representative list and may not include all relevant companies. If your company is not on the list and
would like to be added for future publications, please email tsnyder@agcpartners.com and we would be happy to consider.
4
Corporate EdTech / eLearning Landscape

E-Learning Giants

Content Providers Management Systems Distribution

Indicates public companies or subsidiaries DISCLAIMER: This is only a representative list and may not include all relevant companies. If your company is not on the list and
would like to be added for future publications, please email tsnyder@agcpartners.com and we would be happy to consider.
5
Academic EdTech Market: A Massive Wallet, Significantly
Underpenetrated

 In 2018, the US alone spent a total of $1.4 trillion on education – representing 7% of total GDP
› All but 8% of that wallet is controlled by non-profit institutions funded by public tax payer dollars or private tuitions /
endowments
› As a result, the pace of technology adoption has been painfully slow. It is estimated that universities and schools
spend less than 5% of their annual budget on IT. This compares to a range of 5-10% for Corporate America.
 The US public school system in particular is a patchwork of highly regulated funding mechanisms at the local, state
and federal levels. Virtually every purchasing decision – from the number of computers in a classroom to the content in
a textbook – is rules based

 The K-12 sector represents the largest segment of the US Educational Spend by Sector
academic market, closely followed by Higher Ed. Pre-K is a US$ in Billions
distant third $800
› Whereas for-profits have taken over the Early Childhood / 700
Pre-K segment, the public / non-profit model dominates the $696
rest of the academic market 600
› If anything, after surging during the recession, for-profit
500 $480
schools have lost ground in the last few years, not the least
of which has been a strong economy as well as tighter 400
restrictions on student loans
› Enrollment in for-profit universities and educational 300
institutions is typically inversely correlated to unemployment
200

 The Public / Non-Profit payer is motivated by two bottom lines: 100

business and social. EdTech vendors must demonstrate high $14
$61
efficacy and impact at both levels 0 $23 $27
Childcare K-12 Higher Ed
 At the macro level, EdTech spending is driven by the funding
backdrop, i.e. what remains after budgets are set and taxes For-Profit Non-Profit (Public/Independent)
and tuitions are collected

Source: BMO Capital Markets; The Economist 6

K-12 Segment: A Tough Decade Quickly Coming to a Close

 On average, 47% of K-12 school revenues in the US comes from State funds and 45% comes from Local funds
› Whereas Local funding has fully recovered from pre-recession levels, helped by rising home values and associated
taxes, 29 States provided less overall funding per student as recently as 2015
› This is changing quickly, however. In the fiscal year ending June 2018, State revenues grew by 6.3% nationwide
compared to an average annual increase of 2.3% over the prior seven years
› Midway through the 2019 fiscal year, 34 States say they are meeting or exceeding revenue forecasts with special
approbations for K-12 education increasing by 26% versus 2018
› This breakout to the upside in both State and Local finances augurs well for K-12 budgets going forward,
accelerating a rebound in funding that has been in progress since 2013

K-12 Funding Fell Sharply After Recession Hit Public Educational Funding by Source
Change in funding per pupil compared to 2008, inflation
adjusted Federal
Revenue
$480

State 8%
Revenue
Local
Revenue
47%
45%
$27 $61
$23

Public Education Funding by Source

Source: Tax Policy Center, CBPP.Org, National Association of State Budget Officers 7
 Higher Ed: Have Costs Finally Been Contained?

 After outstripping the consumer price index by a factor of two for 50 years, prices charged by higher education institutions
to consumers are finally showing some signs of cooling
 Since 2011, annual inflation in college tuition prices as measured by the US Bureau of Labor Statistics has downshifted
from a 4-6% range to a 2-2.5% range, roughly in line with CPI
 This coincided with a 10% decline in college enrollments, which peaked at 20.6M in 2011 and stands 2M lower today
 In this more competitive environment, education providers have been more willing, and in some cases forced, to explore
online courseware to reduce delivery costs and price points. This is especially true as pricing power fades and providers
are unable to pass on their costs in full as was customary in years past
› In 2017, “producer costs” as measured by the Commonfund Higher Education Price Index rose 3.7% vs. a 2.5%
rise in headline tuition rates and college fees, thereby crimping margins for providers
› Should this squeeze continue, it’s likely to further accelerate the move to disruptive technologies in order to better
control costs and improve outcomes
“Producer” Costs Continue to Climb as Enrollment Declines Bureau of Labor Price Change in College Tuition and Fees
% Change from 2011

Cost
Fall Enrollment
Source: Commonfund, EdSurge; NCES, Bureau of Labor Statistics 8
The Global EdTech Market: $157B and Growing

Global Ed Tech Market Size

423
 The global EdTech market is forecast to surpass (US$ in Billions)

$420B by 2025 from $157B presently, a CAGR of 367

15%+ 319
277
› EdTech represents less than 5% of total global 240
education expenditures 208
181
157
› The bulk of EdTech spending is concentrated in
the US, but China and India represent the
fastest growing markets as their education
systems continue to modernize
 Management and Distribution are the fastest 2018 2019 2020 2021 2022 2023 2024 2025
growing segments in the EdTech Market
Ed Tech Growth Rates by Region
› Within the Management segment, LMS and 20%
Learning Analytics markets are expected to
grow 24.7% and 25.9% to 2020, respectively 16%

› Within the Distribution segment, Education

12%
Gaming and MOOC markets are expected to
grow 66.2% and 36.0% to 2020, respectively
8%
› Educational Content providers are seeing slower
growth rates due to the shift towards in-house 4%
content development and proliferation of open
and free resources
0%
Asia Africa Latin Middle Western North Eastern
America East Europe America Europe

Source: Ambient Insights; EdTechXGlobal; Grand View Research 9

Variety of End Markets and Business Models

Most Popular Ed Tech Business Models

60%
 The industry is still searching for innovative and
sustainable business models
45%
› The most common business model, selling to
institutions such as schools and districts, is
characterized by large contract sizes but also 30%
revenue risk when they go full term
› “Freemium” models offer free product to 15%
teachers, parents and students, and attempt to
upsell to a premium offering for a fee
0%
 New entrants can gain significant subscriber Institutional Freemium Consumer Freemium Other
growth by pursuing direct-to-consumer mobile Institutional Consumer

strategies, but monetization remains a challenge

Ed Tech Performance Indicators
› Unlike other industries that monetize
substantial user bases through advertising, Less
Important Time to Profitability
that option is not available in the education
business Retention or
Renewals
› As such, Ed Tech companies are often Unit Economics
required to resort to a traditional “boots on the
ground” strategy that incumbent players in the
User Growth
space have employed for decades
Revenue
More
Important
Revenue Growth

Source: EdSurge; Fresco Capital 10

Core Drivers of Ed Tech Adoption

Advances in cloud computing, data analytics, and connectivity make content easier to create and share

US policy encourages and reinforces the adoption of technology by school districts

Proliferation in social media sites supports collaborative and peer to peer learning models

Spiraling college tuitions promote self-paced learning through eBooks and online education

Sky rocketing demand for coding skills drives computer science education to online sources

Rapid rise in global standards in ROW economies creates arms race mandate in US education

Widespread use of mobile devices and tablets promotes interactive courses, gamification of learning

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 Distribution Technologies are Disrupting the Market

 A decade ago, EdTech was dominated by Learning Management Systems (LMS), which provided
software to manage and facilitate instructional content for schools
› The Blackboard – WebCT merger in 2005 signaled the beginning of the maturation of the LMS market
› The LMS market still attracts $5.2B in annual spending with four firms now controlling 80% of the total
market

 Now, big data analytics, mobility, and cloud computing are transforming the way in which educational
content is distributed and consumed
› The primary use of Education Technology is no longer to only manage the learning process, but a new
wave of technologies is changing the way content is delivered
› Content Aggregation, Massive Open Online Courses (MOOCs), Gamification, eBooks, and Immersive
Learning are new technologies that are disrupting traditional educational models
› They provide inexpensive, accessible and comprehensive educational content to the masses

1981 1990 1993 2005 2006 2008 2010 2012 2018

Pearson
First Social
Apple partners with
Implementations Internet begins collaboration
WebCT and Proliferation of announces the edX introduces Google to
IBM introduces of wireless spreading to tools gain
Blackboard online content iPad with MOOCs to develop
first PC student college widespread
Merger aggregators features such as global audience immersive
response campuses adoption in
eBooks learning
systems Education
products

Source: Markets and Markets 12

eLearning is Evolving, Driven by the Corporate Market

Corporate eLearning is still evolving and at the cusp of all four “SMAC” technologies (social, mobile,
analytics and cloud)

 Corporate eLearning can be defined as all forms of
electronic media to facilitate training and development
of a company’s workforce
 Traditionally, eLearning spend has been compliance
oriented – mandatory training for highly regulated
persons and industries
 With new channels for communicating, including
social and mobile now invading the workplace, the
floodgates have opened for all types of training –
involuntary and voluntary alike
 Learning Management Systems (“LMS“) are
increasingly focused on helping employees learn
what they need to know over and above the
regulatory requirements
 Electronic record-keeping is still critical, but that
technology is also changing to accommodate new
media (SCORM to xAPI)
 Moving forward, corporations will increasingly adopt
SaaS (57% today) and single provider (62% today)
LMS solutions

 Moreover, this new content can be delivered in a  Platforms promoting “user experience” and
more cost-effective and productivity-enhancing “continuous learning” should experience the most
manner growth

Source: Docebo, Capterra 13

eLearning is Evolving (Cont’d)

SMAC technologies are reorienting the Corporate eLearning ecosystem

Past Present Future

Monolithic Dis-Aggregation Re-Aggregation
Electronic Record-Keeper Specialized, Siloed Solutions Plug & Play Ecosystem

Learning
Experience
Systems

Legacy Content
Learning Authoring
Tools
Modern Learning
Management Platform Platform
System Integration
Content Lean, flexible and
“Big Brother”, Monolithic Curation integrated to deliver
Tools innovative content
Compliance and
Certification Tracking
Hybrid /
Blended
Learning
SCORM Protocol
SCORM & xAPI Protocol

Involuntary Voluntary

Source: Docebo, Capterra 14

 Private & Public Markets Reflect Improving Sentiment

EdTech Private Financing

$US in Billions
 EdTech private markets cooled in the US after a four 7.0
China
year uninterrupted run, ending in 2015
6.0
US
› 2015 saw a record $1.45B in private funding flowing to
5.0
US EdTech companies with 165 total transactions
› In 2018, funding rebounded to $1.45B, matching the 4.0

2015 record high, albeit on thinner volumes of 110 total

3.0
transactions but larger check sizes
2.0
 While US private markets have recovered, fund flows to
Chinese EdTech companies have exploded 1.0

› Investors have been drawn to companies developing 0.0

English language learning applications for Chinese 2014 2015 2016 2017 2018

youth, which number 250 million in grades K-12 EdTech Sector Stock Performance
80%
SP 500
 These same trends in improving sentiment and fund 70% EdTech Index
flows have played out in the public markets 60%

 After trailing market indices for several years, EdTech 50%

stocks have outperformed over the last two years 40%

30%
 In the new issue market, there have been 8 EdTech IPOs 20%
in 2018, equaling the total of the prior 4 years 10%
› Of these 8 IPOs, 4 were Chinese companies which 0%
listed on the NYSE -10%

Note: EdTech index is comprised of these 12 constituents: PSON, TYL, BLKB, CHGG, CSOD, TWOU, PS, INST, SZE:300010,
LTG, KAHOOT, RST, SYZ. Market cap weighted based on local market performance.

Source: EdSurge, Capital IQ, GETChina 15

 Publicly Traded Ed Tech Firms (>$100M EV)

($ in millions) Market Data Operating Data(c)

Enterprise EV / Revenue EV / EBITDA Revenue EBITDA Revenue Growth LQ Gross EBITDA
Company Value (a) (b) 2018E 2019E 2018E 2019E 2018E 2019E 2018E 2019E 17A/'16A 18E/'17A 19E/18E Margin Margin

Pearson $10,255 1.9x 1.9x 11.6x 10.5x $5,362 $5,473 $881 $974 9% (12%) 2% 51% 16%

Tyler Technologies 6,914 7.4x 6.7x 24.6x 21.6x 938 1,039 $281 320 11% 12% 11% 47% 30%

Blackbaud 3,624 4.3x 4.1x 19.4x 20.5x 850 892 $187 177 8% 8% 5% 55% 22%

Chegg 3,612 11.4x 9.3x 44.0x 32.1x 317 388 $82 113 0% 24% 22% 73% 26%

Cornerstone OnDemand 3,029 5.7x 5.3x 33.2x 23.4x 529 567 $91 129 14% 10% 7% 73% 17%

2U 2,761 6.7x 5.0x NM NM 412 547 $18 12 39% 44% 33% 79% 4%

Pluralsight 1,672 7.3x 5.5x NM NM 231 307 ($43) (28) 27% 38% 33% 75% (19%)

Instructure 1,167 5.6x 4.5x NM NM 209 259 ($16) (11) 43% 32% 24% 71% (8%)

Beijing Lanxum 1,116 3.4x 3.2x ND ND 328 353 37 ND 22% (1%) 8% 48% 11%

Learning Technologies 756 6.0x 4.5x 21.9x 16.1x 126 170 $34 47 102% 79% 35% 25% 27%

Kahoot! 339 ND ND ND ND ND ND ND ND NM NM NM NM NM

Rosetta Stone 336 1.9x 1.8x NM 82.4x 173 191 ($2) 4 (5%) (6%) 11% 79% (1%)

Sylogist 191 6.7x 6.1x 14.1x 12.3x 28 31 $14 16 3% 5% 10% 70% 48%

MEDIAN $1,672 5.9x 4.8x 21.9x 21.1x $323 $371 $36 $47 13% 11% 11% 71% 17%

Notes:
(a) Based on closing stock prices on January 17, 2019
(b) Calculated as Equity Value plus total debt, minority interest (at book value unless otherwise noted) and preferred stock, less cash & equivalents
(c) Projections represent Wall Street consensus mean estimates

Source: Capital IQ 16
Transaction Activity Summary – US & Europe

Highlights & Takeaways

Private Placements  Ex-China, private capital raised
for EdTech companies in
Western markets has rebounded
Total Number of Transactions Total Capital Raised ($MM) to near-record levels in 2018

 Notable recent transactions

$2,231 include the $550M strategic
191 $2,028 investment by Warburg Pincus in
163 Procare and the $130M
136 133 $1,426 investment by TPG in Dreambox
$901  Reflecting the more mature
stage of US and European
EdTech start-ups, M&A volumes
2015 2016 2017 2018 2015 2016 2017 2018
pushed to record highs in 2018

M&A Transactions  Notable recent transactions

include the $1.7B acquisition of
Total Number of Transactions Total Transaction Value ($MM) PowerSchool by Onex and the
$1B+ acquisition of Renaissance
by Francisco Partners
119 118
 PE firms, in particular, have been
94 $8,061 very aggressive establishing
91 $7,008
$6,027 beachheads in the space, using
platform companies and rapid
fire add-ons to consolidate key
sub-segments of the market
$2,240
2015 2016 2017 2018 2015 2016 2017 2018

17
Source: Capital IQ, 451Research, Crunchbase
 Top M&A Deals (2015 – 2018)

Date Target Acquirer Sector Target Business Description Deal Rationale EV ($M)

Ellucian’s industry leadership, global reach, management depth,

Academic Provides enterprise information management software,
Aug-15 and deep vertical focus position the company well for continued 3,500
Mgt. Systems SaaS and services
success and growth

Academic Provides excellent teaching and support to every Cognita presents a very interesting opportunity to create value
Sep-18 2,500
Distribution student to achieve his or her full potential not only for Jacobs Holding but also for society

Blackstone's unique strategy to hold private equity investments

Corporate Provides technology-based educational, curriculum,
Apr-17 in exceptionally high-quality companies for longer periods of 2,000
Mgt. Systems and assessment solutions
time than traditional private equity funds

PowerSchool has an impressive track record of delivering

Academic Offers student information systems and performance
Jun-15 innovative, mission-critical products that serve the diverse 1,744
Content solutions for K-12 schools and districts
needs of educators, parents and students around the globe

Working with management, Vista seeks to scale EAB's best-in-

Academic Provides research, consulting, and systems integration
Aug-17 class thought leadership to its loyal and expanding educational 1,550
Mgt. Systems services for the education sector
member base.

Corporate lynda.com can change the way in which people connect to

Apr-15 Provides online, video-based educational courses 1,500
Distribution opportunity

Academic Provides private education services in the United This transaction will allow us to accelerate our efforts to improve
Feb-17 1,212
Distribution States outcomes for all of our students

Believe in Weld North's vision to become the market leader in

Academic Develops a digital curriculum and tools for preK-
Jan-18 preK-12 digital education. This is the first deal of its size in the 950
Content 12th grade
crriculm space.

Comprises enterprise software developing business for

Academic The education unit provides numerous synergies with Vista-
Dec-16 public administration, public safety, and education 850
Mgt. Sytems owned Powerschool
officials

Corporate Provides online college education services for students Combination will accelerate investment in the educational
Jul-17 800
Distribution in the U.S. experience students receive

Source: Capital IQ, 451 Research, Crunchbase 18

Most Active PE Acquirers (2015 – 2018)

Acquirer Number of Acquisitions Notable Transaction Representative Acquisitions

Gradescope, Illuminate, Alpine, SchoolCity, KDS,
Jul-18 - Announced 5-w ay merger to
11 created Illuminate (ND)
Teachscape, Solutions In Mind, Centris, Excent,
eSPED.com, School Netw ork Improvement

Aug-17 - Acquired The Advisory EAB, Pow erschool, SunGard Public Sector, InfoSnap,
10 Board's education business, aka EAB Maximus, Haiku Learning, SRB Education, Chalkable,
($1.5B) TeacherMatch, Performance Matters

Jan-18 - Sale of Weld North Education Intellify Learning, Performance Matters, Big Brainz, Think
6 (KKR to Silver Lake, $950M) Through Learning, Reasoning Mind, CompassLearning

Dec-18 - Acquired Tes Global from TPG Scenario Learning, Convergence Training , Tes Global, Blue
4 (ND) Canary Data Analytics

Sep-18 - Acquired Campus Management DecisionHealth, Pass Perfect Associates, Idenizen

4 Corp (ND) Smartw are, Educaiton Partners

Career Step, Emergency Certifications, Code3 CME, Medic-

4 10-16 - Acquired Medic-CE.com (ND)
CE

5-16 - Acquired Renaissance Learning

3 from Hellman & Friedman (ND)
myON, Discovery Education, Renaissance Learning

3 8-18 - Acquired LifeCubby (ND) ChildCare Education Institute, Frog Street Press, LifeCubby

8-17 - Acquired Frontline Technologies

2 from Insight Venture Partners (ND)
Frontline Technologies, Prologic Technology Systems

2 5-18 - Acquired Destiny Solutions n2y LLC, Destiny Solutions

Source: Capital IQ, 451 Research, Crunchbase 19

Most Active Strategic Acquirers (2015 – 2018)

Acquirer Number of Acquisitions Notable Acquisition Representative Acquisitions

AHC Media, Sw ank HealthCare, Assessment & Intelligence
6 Sep-18 - OnCourse Learning (ND) Systems, RediLearning, Academy Medical Systems,
OnCourse Learning

Student Brands, LoudCloud Systems, Paper Rater, MBS

5 Feb-17 - MBS Textbook ($197M)
Textbook Exchange, RFQ

4 Learner's Digest ($150M) Firecracker, Macmillan Learning, Learner's Digest, CPE

Aug-15 - TSS Redmond & Ameriteach AmeriTeach, TSS Redmond, MasterLink Training, 1Staff
4 (ND) Training

Eukleia Training, Watershed Systems, gWhiz, Rustici

4 Jan-16 - Rustici Softw are ($26M)
Softw are

3 Oct-15 - SmartPros ($17M) CleanEdison, SmartPros, Booz Allen Hamilton

Financial Aid Management for Education, Furlong Business

3 Nov-17 - FAME (ND)
Solutions, The Alpha School System

Advanced Instructional Systems, Pathbrite, Learning

3 Sep-16 - WebAssign (ND)
Objects

3 May-16 - Imagine Easy ($42M) StudyBlue, WriteLab, Imagine Easy Solutions, Cogeon

2 Jan-16 - Code School ($36M) Train Simple, HackHands, Code School

Source: Capital IQ, 451 Research, Crunchbase 20

 Top Financings (2015 – 2018) – US & Europe

Date Company Size ($M) Sector Investors Series Description

Academic Provides solutions to educational institutions to put their

Nov-15 $230 Bertelsmann SE & Co. KGaA Growth
Distribution degree programs online

Advance Publications; Allen & Company,

Academic
Apr-17 $190 Investment Arm; TPG Growth; MainStreet Series D Operates a digital learning and education technology platform
Distribution
Investment Advisors

Corporate Accel Partners; MeriTech Capital Partners; Offers educational training courses in the fields of business,
Jan-15 $186 Growth
Content Spectrum Equity Management; TPG Capital software, technology, and creative skills

Academic Offers online education resource for children ages 2–7 in the
May-16 $150 ICONIQ Capital Growth
Mgt. System US and internationally

Academic Develops and delivers online elementary and middle school

Jul-18 $130 TPG Growth Growth
Mgt. System math software that aligns to the US and Canadian standards

Academic Develops mobile apps including games, online education, and

Jul-18 $124 Innova Capital; Naspers Ventures Growth
Content entertainment apps for adults and kids

Institutional Venture Partners; General Catalyst

Academic Improves communication by helping users find and correct
May-17 $110 Partners; Spark Capital Partners; Breyer Series A
Mgt. System writing mistakes
Capital; Signalfire

CRV; Baillie Gifford & Co.; Bertelsmann Digital

Academic
Nov-15 $105 Media Investments; GV; Andreessen Horowitz; Series D Provides online education courses
Distribution
Drive Capital; Emerson Collective

Academic IVP, NEA, Evolution Media, Atomico, Advancit Provides a premier online education platform redefining the
Sep-18 $80 Series D
Distribution Capital digital learning experience

Austin Ventures; Warburg Pincus; SJF

Academic Ventures; Emergence Capital Partners; New Provides a predictive analytics platform that helps institutions
Sep-15 $70 Series D
Distribution Markets Venture Partners; First Round Capital; to build a strategic analytics infrastructure
Felicis Ventures

Source: Capital IQ, Crunchbase 21

Top Funded Companies – US & Europe

Company Total Funding ($M) Sector Lead / Majority Investors Business Description

Academic Provides solutions to educational institutions to put their degree

318.1 Bertelsmann
Mgt. Systems programs online

Academic Bezos Expeditions; Rethink Education; Operates a digital learning and education technology platform
289.0
Distribution TPG Growth through which it offers a range of digital courses

Academic EDB Investments; GSV Asset Operates an online education platform that offers access to
210.1
Content Management; Kleiner, Perkins; NEA courses from universities and organizations worldwide

Provides services for k-8 programs, such as individualized

Corporate
183.0 New Mountain; Tennenbaum Capital learning, tiered intervention, practice and preparation, classroom
Distribution
assessment, and foundational literacy

Corporate .406 Ventures; Commonfunf; Mitsui; NGP; Provides video platform for enterprises, media companies,
178.1
Distribution Sapphire Ventures service providers, and educational institutions

Academic Insight Venture; Lightbank; Naspers Offers online courses for students in the United States and
173.0
Distribution Ventures; Norwest Ventures internationally

Academic Develops and delivers online elementary and middle school math
172.6 TPG Growth
Content software that aligns to the United States and Canadian standards

Corporate Offers online education resource for children ages 2–7 across the
166.5 Angel Capital; ICONIQ
Content United States and internationally

Provides an online integrated learning platform for learners in

Academic
165.0 NEA, OMERS Ventures higher education, K–12, healthcare, government, and enterprise
Distribution
sectors

Academic EBD Investments, TAL Education Group,

157.3 Provides an online adaptive learning engine
Distribution GSV Asset Management

Source: Capital IQ, Crunchbase 22

Top Funded Companies – China

Company Total Funding ($M) Sector Lead / Majority Investors Business Description

Academic GGV Capital, Sequoia Capital China, Engages in development, promotion, transfer, consulting and
1,059
Distribution NEA, Goldman Sachs services of education technology

A global education technology company that connects children

Academic Sequoi Capital, Matrix Partners, Tencent
825.0 with the world's best teachers for real-time online English
Distribution Holdings
immersion learning

Owns and operates online study platform 17zuoye.com and

Academic
580.0 CITIC, Temasek Holdings, Shunwei provides technology-based online and mobile language learning
Distribution
solutions

Corporate Goldman Sachs, Tencent Holdings, SAIF

457.0 Designs and develops a question-and-answer website
Distribution Partners

Operates 110 kindergartens, early education centers and training

Academic
365.0 Legend Holdings schools in Shanghai, Suzhou, Nanjing, Chongqing, Changsha and
Distribution
Guangzhou.

Academic Provides online education platforms for students and business

315.0 Alibaba; Qiming Weichaung
Distribution professionals

Develops and operates web-based digital education platform for

Academic Baidu, China Minsheng Group, SB China
277.0 online language learning, communication, information, and
Distribution Venture Capital
services

Academic Provides an exercise database that provides authoritative

243.5 Tencent Holdings, China Media Capital
Distribution contents of previous years' examinations for students

Academic Develops training product and provides online teaching services

211.0 AlphaX; CMC Capital; JD Capital
Distribution to K-12 education

Academic Online platform for academic credit courses with over 2000
207.0 SINA Corporation, Delta Capital
Distribution institutions and 7 million eLearners.

Source: Capital IQ, Crunchbase, GETChina 23

 Most Active Investors (2015 – 2018)

Investor Number of Investments Representative Investments*

ABL, Accelerate Learning, Backpax, BenchPrep, BetterLesson, Degreed, DreamBox, Imbellus,
22 Kiddom, Kuali, LearnZillion, Lingo Live, New slea, Noodle Partners, Panorama, Piper, Quizlet,
RaiseMe, Securely, Sw ing Education Thinkful, Tinkergarten

AltSchool, Andela, BloomBoard, BrightBytes, Build Academy, Coursera, Edunav, Experiment, FC,
22 Foundry, General Assembly, KidAdmit, Limelight, MissionU, Photomath, Shearw ater, SlideRule,
SoloLearn, Teachable, Varsity Tutors, Wonderw orkshop, Wonderschool

CampusLogic, CollegeVine, Credly, EquitySim, EverTrue, Examity, Galvanize, MissionU, Mitomatic,

21 Mpow er, Packback, Portfolium, Pragya Systems, Ready Education, Revature, Techtonic, UNICAF,
Veridas Learning

Alw ays Be Learning, BetterLesson, Class Tw ist, Elevation, Epic! Creations, FreshGrade, Holberton
17 School, Limelight, Monki Mun, Nearpod, Neuron Fuel, SchoolMint, Stryder, Tapd, Tinkergarten, Mrs
Wordw orth, Piper

Allovue, Alw ays Be Learning, BrightBytes, Civitas Learning, Crehana, Degreed, EverFi, General
17 Assembly, Guild, Imbellas, Know ledge to Practice, Lessonly, MissionU, NoRedlnk, Trilogy, Voxy,
Wonderschool

BenchPrep, Bridge Academies, Coursera, Desire2Learn, Duolingo, Edmodo, EverFi,

10 MindTickle,Neuron Fuel, FiftyThree

9 Vidcode, Peergrade, Limelight, Ready Education, Rocketlit, Leada, Mimir, WayUp, Cribspot

8 Sw ing Education, CodeSpark, Allovue, Educents, NoRedInk, Enuma, CodeHS, SchoolMint

Wonderschool, Knew ton, Raise Labs, Civitas Learning, Percolate Industries,

7 Earnest Operations, Koru Careers

7 RealtimeBoard, Knew ton, MindTickle, Tangible Play, Grovo Learning, Lynda.com, Vedantu

* Excludes seed rounds Source: CapIQ, Crunchbase 24

Mergers & Acquisitions 2015 - 2018
For disclosed transactions
EdTech M&A (Cont’d)

Transaction Target EV /
Date Target Acquirer Value ($M) TTM Rev TTM Rev Target Description
Offers online game which teaches computer programming to children which
Dec-18 CodeMonkey Studios TAL Education Group $20 ND ND
includes language CoffeeScript

Provides an online training platform that enables the businesses to access

Nov-18 Grovo Learning Cornerstone OnDemand 24 ND ND
technology, content, and service to align, educate, and inspire their teams

Operates as a holding company for businesses that provide traditional and

Oct-18 Cambium Learning Veritas Capital 744 159 4.7x
software-based educational curriculum for the education sector

Provides exceptional learning at its preschools, schools, university pathway

Sep-18 ACG Education Inspired 500 ND ND
programs, and vocational colleges

Provides excellent teaching and support to every student to achieve his or her full
Sep-18 Cognita Schools Jacobs Holding 2,500 ND ND
potential

Provides Microsoft Windows-based child care management software, SaaS,

Aug-18 Procare Software Warburg Pincus 550 ND ND
services and integrated hardware for businesses globally

Provides a crowdsourced learning website and mobile app for students and
Jul-18 StudyBlue Chegg 21 ND ND
teachers globally through www.studyblue.com

Jun-18 Qwizdom Boxlight 3 ND ND Provides classroom presentation and engagement solutions

Provides AI-enhanced software that helps high school students with grammar,
May-18 WriteLab Chegg 15 ND ND sentence structure and writing style, and gives them feedback for revisions, edits
and improvements to their written work

Apr-18 Vocado Oracle 130 8 16.3x Provides financial aid management SaaS for higher education institutions

Provides online IT, digital marketing and Web development, and software
Apr-18 General Assembly Adecco Group 413 $100 4.1x
development courses for consumers globally

Offers student information systems and performance solutions for K-12 schools
Apr-18 PowerSchool Group Onex 1,744 ND ND
and districts

Apr-18 Embibe Reliance Industries 180 ND ND Provides AI-based education data analytics SaaS to schools in India

Operates an online platform that enables educators to connect and collaborate

Apr-18 Edmodo Best Assistant Education Online 138 1 136.3x
with students, parents, and each other

Provides an online and mobile medical education, learning and exam preparation
Mar-18 Firecracker Wolters Kluwer Health 11 ND ND
service for healthcare markets and students and higher learning institutions

Source: Capital IQ, 451 Research, Crunchbase 26

EdTech M&A (Cont’d)

Transaction Target EV /
Date Target Acquirer Value ($M) TTM Rev TTM Rev Target Description
Discovery Education [Discovery Provides e-textbooks, online learning materials, and professional development
Feb-18 Francisco Partners $120 ND ND
Communications] training for K-12 schools and educators

Jan-18 Weld North Education Silver Lake Partners 950 ND ND Develops a digital curriculum and tools for preK-12th grade

Nov-17 Big Universe K12 3 ND ND Provides K-12 literacy education SaaS to schools

Oct-17 Capella Education Strayer Education 800 440 1.8x Provides online college education services for students in the U.S.

Provides a mobile application that helps high-school and college students with
Oct-17 Cogeon Chegg 27 ND ND
their mathematics problems

Engages in academy franchise, after class education service, publication, and e-

Oct-17 A1N Co-link Private Equity Co. 96 12 7.7x
learning business in South Korea

Provides educational services in the Middle East, North Africa, East Asia, and
Sep-17 Educational Holding Group Boubyan Petrochemical 245 38 6.5x
internationally

Develops a learning management system that manages, delivers, and tracks

Sep-17 Absorb Software Silversmith Capital Partners 59 ND ND
online and instructor led training events

Provides research, consulting, and systems integration services for the

Aug-17 EAB Vista Equity Partners 1550 ND ND
education sector

Publishes print and digital K-12 resources, standards-aligned instructional

Aug-17 Triumph Learning School Specialty 20 25 0.8x
materials, and literacy programs for students and teachers in the United States

Provides online study and writing skills education services for high school,
Aug-17 Student Brands Barnes & Noble Education 585 ND ND
college, and post-graduate students

Provides school network and computer lab management SaaS for businesses in
Aug-17 Impero Software Investcorp Technology Partners 36 ND ND
the education industry

Jul-17 JumpStart Games NetDragon Websoft 26 ND ND Designs and produces educational mobile and multiplayer online games

Jun-17 Learning Heroes CallidusCloud 10 ND ND Provides online professional development courses for businesses in Europe

May-17 GetSmarter 2U 103 17 6.1x Provides online short education courses for working professionals in South Africa

Source: Capital IQ, 451 Research, Crunchbase 27

EdTech M&A (Cont’d)

Transaction Target EV /
Date Target Acquirer Value ($M) TTM Rev TTM Rev Target Description

Apr-17 Ascend Learning Blackstone 2,000 ND ND Provides technology-based educational, curriculum, and assessment solutions

Provides gamified education SaaS to help children from Pre-K to Grade 2 to learn
Apr-17 Ooka Island Scholastic $10 ND ND
to read

Provides an online scholarship application software solution for community

Apr-17 AcademicWorks Blackbaud 50 ND ND
colleges, public and private institutions, universities, and foundations

Develops, markets, and sells software-as-a-service based talent management

Feb-17 Halogen Software Saba Software 212 72 2.9x
software solutions worldwide

Provides performance, knowledge, and learning management solutions

Feb-17 NetDimensions Learning Technologies Group 67 25 2.6x
worldwide

Provides K-12 education assessment management software for schools and

Jan-17 Questar Assessment ETS 128 ND ND
educators

Vista Equity Partners

Dec-16 SunGard 850 ND ND Provides ERP administration SaaS for the K-12 business
Management

Provides financial and payment processing software and services for higher
Jun-16 Higher One Blackboard 263 152 1.7x
education institutions

May-16 Imagine Easy Solutions Chegg 42 ND ND Operates multiple websites that provide online academic tools

Apr-16 LTS Education Systems K12 23 8 2.9x Designs and develops digital game-based learning platforms and software

Provides external, SaaS, cloud-based learning management solutions (LMS) for

Apr-16 ViewCentral Callidus Software 4 ND ND technology, financial services, biosciences, human resources, consulting, and
other industries
Provides accounting professional training course software, as well as teaching
Mar-16 Xiamen NetinNet Software China Distance Education 33 ND ND
simulation software, for colleges and college students in China
Provides school parent and staff communications software-as-a-service that
Mar-16 Synrevoice Technologies West 9 ND ND enables the dissemination of daily attendance and school-wide messages for K-
12 schools and districts
Provides courseware and learning management, workforce training and related
Mar-16 LoudCloud Systems Barnes & Noble Education 18 ND ND
analytics SaaS for educational institutions and businesses

Feb-16 Colloquy ND 19 ND ND Develops and supports online higher education programs

Source: Capital IQ, 451 Research, Crunchbase 28

EdTech M&A (Cont’d)

Transaction Target EV /
Date Target Acquirer Value ($M) TTM Rev TTM Rev Target Description
Provides content on a learning network for children, families, and teachers
Feb-16 Cricket Media Group ZG Ventures $32 13 2.4x
worldwide

Feb-16 LeapFrog Enterprises VTech 72 284 0.3x Provides child-oriented hardware and software

Provides standards compliance, content management and collaboration software

Jan-16 Rustici Software Learning Technologies 26 7 3.9x
for E-learning institutions

Provides electronic learning management SaaS, including collaboration, student

Oct-15 Wizlearn Technologies V-cube Global Services 14 ND ND
assessments and mobile device-based learning, for K-12 schools globally

Provides Internet-based e-learning solutions with customized contents to various

Oct-15 Wizlearn Technologies V-cube 14 11 1.2x
corporate organizations, government institutions, and agencies

Provides interactive whiteboards, wireless presentation devices, and electronic

Oct-15 Promethean World NetDragon Websoft 130 ND ND
pens

TPG Capital / Leonard Green

Aug-15 Ellucian 3,500 ND ND Provides enterprise information management software, SaaS and services
Partners

Provides mobile and online continuing medical education (CME) audio and video
Aug-15 Learner's Digest International Wolters Kluwer Health 150 ND ND
content for the healthcare industry worldwide

Provides an online community destination where former high school classmates

Aug-15 Classmates Intelius 30 ND ND
can locate each other and plan events

Houghton Mifflin Harcourt Provides a reading app that digitalizes children’s stories and adds features such
Aug-15 MeeGenius 1 ND ND
Company as word highlighting and audio playback

Aug-15 Smart Tuition Blackbaud 190 30 6.3x Provides on-site and cloud-based tuition payment processing

Provides e-learning services and learning technologies to corporate and

Jul-15 Eukleia Training Learning Technologies 17 8 2.2x
government clients
Offers online education courses on Health Insurance Portability and
Jul-15 BridgeFront Callidus Software 5 ND ND Accountability Act (HIPPA), compliance, revenue cycle, risk management, and
communication skills
Provides online digital marketing training, including SEO, PPC, mobile and social
Jun-15 Market Motive Simplilearn Solutions 10 ND ND
media marketing, and display advertising training for businesses and individuals

Jun-15 PowerSchool Vista Equity Partners 350 97 3.6x Provides web-based and mobile student information system (SIS) software

Source: Capital IQ, 451 Research, Crunchbase 29

EdTech M&A (Cont’d)

Transaction Target EV /
Date Target Acquirer Value ($M) TTM Rev TTM Rev Target Description
Creates, develops, supplies, and supports learning technology solutions primarily
Jun-15 Promethean World Best Assistant Education Online $141 181 0.8x
for the education market

Jun-15 EliteMedianet Oakley Capital 24 34 0.7x Provides an online academic and degree-focused dating service

Scholastic (EdTech business

Apr-15 Houghton Mifflin Harcourt 575 ND ND Provides curriculum-based online educational courses
assets)

Operates an online visual editing platform that allows users to turn 3D content
Apr-15 Verold Box 5 ND ND
into interactive presentations on the Web

Apr-15 lynda.com LinkedIn 1,500 150 10.0x Provides online, video-based educational courses

Provides student management software, including admissions, enrollment and

Mar-15 Callista Software Services Tribal Group 3 13 0.2x
fees management, for educational institutions in Australia

Provides software as a service model human resources and talent management

Feb-15 HRsmart Deltek 45 ND ND
software solutions for companies to attract, hire, develop, and retain talent
Provides employee training, performance management, learning and
Feb-15 Saba Software Vector Capital 268 ND ND assessment management, compensation management, collaboration and Web
conferencing SaaS
Provides online computer programing instructional video courses, screencasts
Jan-15 Code School Pluralsight 36 ND ND
and tutorials website

Source: Capital IQ, 451 Research, Crunchbase 30

Private Placements 2015 – 2018
For investments of $20M and above
EdTech Private Placements

Amount
Date Target Investor Round Raised ($M) Investors Target Description
Stanford University; REV Venture Partners; State Street
Operates an online social knowledge network platform that allows
Dec-18 EdCast Growth $34 Global Advisors; SoftBank Capital; Mistletoe Corp; Cervin
individuals and organizations to build their knowledge network
Ventures
Gemini Israel Funds; Viola Ventures; Vintage Investment
Provides cloud-based service management platform that helps
Nov-18 Samanage Series D 30 Partners; Morgan Stanley Private Equity; Marker; Salesforce
organization to unlock the potential of their employees
Ventures

Designs and develops whiteboarding platform for cross-functional

Nov-18 RealtimeBoard Series A 25 Accel Partners; AltaIR Capital
team collaboration

Provides a premier online education platform redefining the digital

Sep-18 MasterClass Series D 80 IVP, NEA, Evolution Media, Atomico, Advancit Capital
learning experience

CICC, Sequoia Capital China, Everest Venture Capital, GX Provides a robotics construction platform for makers and STEM
Aug-18 Makeblock Series C 43
Capital learners to turn ideas into reality

Discovers and distributes eBooks, eTextbooks, digital course

Aug-18 RedShelf Series C 25 DNS Capital packets, publisher product codes, print on demand, and digital
OER online for student learners
Provides students with tailored recommendations for exactly what
Aug-18 Knewton Debt 25 TriplePoint Capital to study and teachers with analytics to better support each
student
Andreessen Horowitz, Omidyar Network, Gary Community
Offers a platform where people can start infant and toddler
Aug-18 Wonderschool Series A 20 Investments, First Round Capital, Correlation Ventures,
programs and preschools out of their homes
Abstract Ventures

Aug-18 Procare Software Growth 550 Warburg Pincus Provides integrated child care management technology solutions

Develops and delivers online elementary and middle school math

Jul-18 DreamBox Learning Growth 130 TPG Growth
software that aligns to the United States and Canadian standards

Felicis Ventures, Bessemer Venture Partners, Redpoint,

Offers classes, programs and degrees for working adults, with a
Jul-18 Guild Education Series C 40 Silicon Valley Bank, Salesforce Ventures, Harrison Metal,
path for them to move forward in their education and career
Cowboy Ventures, Rethink Education, Workday Ventures

Union Square Ventures; Amasia; Burda Principal Operates an online learning community for creators around the
Jul-18 Skillshare Series C 28
Investments; Spero Ventures world

Accel Partners; Bessemer Venture Partners; FirstMark

Jul-18 Knewton Debt 25 Capital; Sofina Société Anonyme; First Round Capital; Provides an online adaptive learning engine
Founders Fund; Atomico Investment

Catalyst Investors, University Ventures, New Markets

Jul-18 Galvanize Series C 32 Provide a school for entrepreneurs, engineers, and data scientists
Venture Partners, ABS Capital Partners

Develops apps in various platforms for mobile phones,

Jul-18 Movile Internet Móvel Growth 124 Innova Capital; Naspers Ventures smartphones, and tablets, including games, online education, and
entertainment apps for adults and kids

Source: Capital IQ, Crunchbase 32

EdTech Private Placements (Cont’d)

Amount
Date Target Investor Round Raised ($M) Investors Target Description

Provides K-12 contracted instructional services in the United

Jun-18 Catapult Learning Debt $21 ND
States

General Atlantic Service Company; Bpifrance

Designs and develops an online Web platform that offers online
May-18 OpenClassrooms Series B 60 Investissement; Alven Capital Partners; Citizen Capital
educational courses accessible to all
Partenaires

Offers ClearCost, a cloud-based student financial aid engagement

Apr-18 CampusLogic Growth 55 JMI Equity
platform.

Tennenbaum Capital Partners; New Mountain Capital; New Provides online learning programs to drive student achievement for
Apr-18 Edmentum Growth 25
Mountain Finance academic and career success

Insight Venture Partners; Seaya Capital Gestión, SGEIC; Develops educational games for K-12 children on mobile and
Mar-18 Yogome Series B 27
Variv Capital; Exceed Capital Partners browser-based platforms

Signal Peak Ventures; Owl Ventures; Jump Capital; Provides a lifelong learning platform to track, discover, and
Mar-18 Degreed Series C 42
Founders Circle Capital; GSV Acceleration recognize learning

Operates an online quality-oriented education platform targeting

ZhenFund; Gopher Asset Management; Fosun RZ Capital;
Mar-18 Chengzhangbao Series B 24 K12 students that provides online courses for children to improve
Gene Capital
language logic, mathematical logic, memory, and attentiveness

Technology Crossover Ventures; Learn Capital; Chan

Feb-18 Varsity Tutors Series C 50 Offers in-home and online private academic tutoring services
Zuckerberg Initiative

Africa Crest Operates K-12 schools across the African continent and a chain of
Feb-18 Venture 20 Dubai Investments
Education schools under the name SABIS

Altos Ventures; Icon Ventures; Union Square Ventures; Owl Develops and builds learning tools for students and teachers
Feb-18 Quizlet Series B 20
Ventures; Costanoa Venture Capital worldwide

Africa Crest
Jan-18 Venture 20 Dubai Investments Owns and operates K-12 schools across the African continent
Education

MindTickle Interactive Accel Partners; Canaan Partners; New Enterprise Provides a social learning platform for organizations and
Dec-17 Series B 27
Media Associates; QUALCOMM Ventures corporations in various industries

Develops apps in various platforms for mobile phones,

Nov-17 Movile Internet Móvel Growth 82 Innova Capital; Naspers Ventures smartphones, and tablets, including games, online education, and
entertainment apps for adults and kids
Madrona Venture Group; SOFTBANK Ventures Korea; Vtron
Oct-17 Wonder Workshop Series C 41 Group; TAL Education Group; Tencent, Investment Arm; Offers dash and dot robots that help kids to learn to code
Maven Ventures Growth Labs; Mindworks Ventures
Beijing Gaosibole The Hina Group; Sinovation Ventures Enterprise
Develops training product and provides online teaching services to
Sep-17 Education Growth 83 Management; CMC Capital Partners; China International
K-12 education
Technology Capital; Loyal Valley Capital; AlphaX Partners

Source: Capital IQ, Crunchbase 33

EdTech Private Placements (Cont’d)

Amount
Date Target Investor Round Raised ($M) Investors Target Description

Develops a learning management system that manages, delivers,

Sep-17 Absorb Software Growth 59 Silversmith Capital Partners
and tracks online and instructor led training events

Engages in academy franchise, after class education service,

Aug-17 A1N PIPE $27 ND
publication, and e-learning business in South Korea

Develops a language learning platform for for businesses, schools,

Jul-17 Duolingo Series E 25 Drive Capital
and governments globally

Beijing Combanc
Jun-17 Venture 24 Beijing Lanxum Technology Develops educational software
Technology

GSV Capital; Kleiner Perkins Caufield & Byers; New

Operates an online education platform that offers courses from
Jun-17 Coursera Series D 64 Enterprise Associates; The Lampert Foundation,
universities and organizations worldwide
Endowment Arm; Learn Capital
Provides an online platform that enables users to view and
REV Venture Partners; Social Capital; CAA Ventures;
May-17 CreativeLIVE Growth 25 purchase online courses related to photography, video, design,
Greylock Partners; GSV Acceleration
business, audio, music, crafting, and software training

Institutional Venture Partners; General Catalyst Partners; Develops an online grammar and spelling checker that improves
May-17 Grammarly Series A 110
Spark Capital Partners; Breyer Capital; Signalfire communication by helping users find and correct writing mistakes

Advance Publications; Allen & Company, Investment Arm;

Apr-17 EverFi Series D 190 Operates a digital learning and education technology platform
TPG Growth; MainStreet Investment Advisors

Develops and provides a software solution for data collection and

Apr-17 Qualtrics Series C 180 Accel Partners; Insight Venture Partners; Sequoia Capital
analytics

Kleiner Perkins Caufield & Byers; New Enterprise

Operates an online education platform that offers courses from
Mar-17 Coursera Series D 64 Associates; The Lampert Foundation, Endowment Arm;
universities and organizations worldwide
Learn Capital; GSV Asset Management

Inherent Group; Trinity Capital Investment; University

Mar-17 Examity Series A 21 Enables trainers to create mobile courses and learning games
Ventures

Insight Venture Partners; Krillion Ventures; Reach Capital; Provides a cloud-based platform to enhance the learning process
Mar-17 Nearpod Series B 21
GSV Acceleration in classrooms and distance learning

Accel Partners; Upfront Ventures; J.F. Shea Venture

Develops a hardware gaming device for kids that connects to iPad
Dec-16 Tangible Play Series B 24 Capital; Mattel; K9 Ventures; Collaborative Fund; Houghton
and iPhone
Mifflin Harcourt Company; Calibrate Partners

Nov-16 Inkling Systems Series E 25 Sequoia Capital; Sapphire Ventures; Tenaya Capital Provides cloud publishing platforms to create and publish content

Nov-16 Axonify Venture 27 JMI Equity; BDC Venture Capital Provides an eLearning platform for corporate learning

Source: Capital IQ, Crunchbase 34

EdTech Private Placements (Cont’d)

Amount
Date Target Investor Round Raised ($M) Investors Target Description
Operates a game-based learning and trivia platform for schools,
Sep-16 Kahoot! Series A 20 Northzone Ventures; Creandum; M12 businesses, and professional users in the United States and
internationally

ABS Capital Partners; University Ventures; Aspen Grove Offers education, workspace, and networking for students,
Aug-16 Galvanize Series B $45
Capital; Colorado Impact Fund; Teamworthy Ventures startups, and large companies in the United States

CRV; Madrona Venture Group; WI Harper Group; Innovation

Jul-16 Wonder Workshop Series B 20 Offers dash and dot robots that help kids to learn to code
Works; TCL; Learn Capital; Sinovation North America

Develops science, technology, engineering, and mathematics

Jul-16 Slate Science Series B 45 ND
educational applications for tablets

New Enterprise Associates; Advance Publications; Silicon

Jul-16 EverFi Series C 40 Valley Bank; Bezos Expeditions; TomorrowVentures; Operates a digital learning and education technology platform
Rethink Education; Rethink Impact

Index Ventures; Union Square Ventures; Flybridge Capital

Jul-16 Codecademy Series C 30 Offers online training classes on coding
Partners; Naspers Ventures

Offers online courses for students in the United States and

Jun-16 Udemy Growth 60 Naspers Ventures
internationally

Operates ABCmouse.com Early Learning Academy that offers

May-16 ABCmouse Growth 150 ICONIQ Capital
online education resource for children ages 2–7

Offers courses that give professional certification and skills training

Feb-16 KooLearn ND 49 Tencent Holdings, Investment Arm in areas such as Business English, Finance, Management, and IT
training
Provides an online training platform that enables the businesses to
Accel Partners; SoftTech VC; Costanoa Venture Capital;
Jan-16 Grovo Learning Series C 40 access technology, content, and service to align, educate, and
RSE Ventures, Investment Arm; Vayner/RSE
inspire their teams

Provides a technology and services platform that delivers

Jan-16 Everspring Venture 28 ND
customized and integrated education solutions online

General Catalyst Partners; GSV Advisors; Reach Capital; Operates an online classroom tool that helps teachers enhance
Dec-15 ClassDojo Series B 21
Signalfire behavior in their classrooms.

Provides solutions to educational institutions to put their degree

Dec-15 HotChalk Growth 83 ND
programs online

Provides a lifelong learning platform to track, discover, and

Dec-15 Degreed Series B 21 Jump Capital; Signal Peak Ventures; Rethink Education
recognize learning

Birchmere Ventures; Catalyst Investors; Catamount Provides online speech therapy, occupational therapy, behavioral
Nov-15 PresenceLearning Series C 25 Ventures Management; New Markets Venture Partners; and mental health, and other special education related services to
Blue Heron Capital K-12 students and school districts

Source: Capital IQ, Crunchbase 35

EdTech Private Placements (Cont’d)

Amount
Date Target Investor Round Raised ($M) Investors Target Description
Goldman Sachs Group, Merchant Banking Division;
Provides online education platforms for students and business
Nov-15 iTutorGroup Series C 200 Temasek; GIC; China Investment Corporation; Russian
professionals
Direct Investment Funs
CRV; Baillie Gifford & Co.; Bertelsmann Digital Media
Nov-15 Udacity Series D $105 Investments; GV; Andreessen Horowitz; Drive Capital; Provides online education courses
Emerson Collective

Nov-15 Varsity Tutors Series B 50 Technology Crossover Ventures Offers in-home and online private academic tutoring services

JMI Equity; FirstMark Capital; Intel Capital; Great Road Develops a cloud-based learning management system for K-12,
Nov-15 Schoology Series D 32
Holdings higher education, and corporates

Provides solutions to educational institutions to put their degree

Nov-15 HotChalk Growth 230 Bertelsmann SE & Co. KGaA
programs online

Develops and operates web-based digital education platform for

Shanghai Hujia
Oct-15 Series D 157 SB China Venture Capital; China Minseng Investment online language learning, communication, information, and
Cultural Transmission
services

Oct-15 TalentSoft ND 25 Goldman Sachs Group, Merchant Banking Division Develops cloud-based talent-management software

Benchmark; Goldman Sachs, Merchant Banking Division;

Operates an online professional network for scientific researchers
Oct-15 ResearchGate Series D 53 Wellcome Trust, Investment Division; Groupe Arnault;
worldwide
Founders Fund; Tenaya Capital; The Four Rivers Group
Accel Partners; Bessemer Venture Partners; FirstMark
Oct-15 Knewton Growth 52 Capital; EDB Investments; Founders Fund; TAL Education Provides an online adaptive learning engine
Group
Beijing Gaosibole
Develops training product and provides online teaching services to
Sep-15 Education Growth 20 Morningside Venture Capital; Lightspeed China Partners
K-12 education
Technology
Austin Ventures; Warburg Pincus; SJF Ventures; Provides a predictive analytics platform that helps institutions to
Sep-15 Civitas Learning Series D 70 Emergence Capital Partners; New Markets Venture build a strategic analytics infrastructure bringing real-time insights
Partners; First Round Capital; Felicis Ventures to administrators, faculty, advisors, and students
Beijing Gaosibole
Develops training product and provides online teaching services to
Aug-15 Education Series B 63 JD Capital
K-12 education
Technology
New Enterprise Associates; Kleiner Perkins Caufield &
Operates an online education platform that offers courses from
Aug-15 Coursera Series C 61 Byers; International Finance Corporation; Times Internet
universities and organizations worldwide
Limited; Learn Capital; GSV Capital

Bessemer Venture Partners; Insight Venture Partners; Learn Operates a SaaS-based data analytics platform that measures
Jul-15 BrightBytes Series C 33
Capital; Rethink Education and links technology use in education to learning outcomes

Scottish Equity Partners; IBB Beteiligungsgesellschaft; REV

Jul-15 Babbel Series C 22 Operates an online learning system for foreign languages
Venture Partners; NGP Capital

Source: Capital IQ, Crunchbase 36

EdTech Private Placements (Cont’d)

Amount
Date Target Investor Round Raised ($M) Investors Target Description

Operates an education Website that helps parents and students in

Jun-15 Noodle Education Venture 28 ND
making decisions about learning

Kleiner Perkins Caufield & Byers; New Enterprise

Jun-15 Duolingo Series D $45 Develops a language learning platform for classrooms
Associates; Union Square Ventures; CapitalG

Insight Venture Partners; Norwest Venture Partners; Stripes Offers online courses for businesses through the Udemy Business
Jun-15 Udemy Series D 65
Group product

Sequoia Capital; Technology Crossover Ventures; Granite

Develops and delivers video interviewing software solutions and
Jun-15 HireVue Growth 45 Ventures; Patricia Industries; Rose Park Advisors; Peterson
assessment services for recruiting and hiring talent
Ventures

Accel Partners; MeriTech Capital Partners; Spectrum Equity Offers educational training courses in the fields of business,
Jan-15 Lynda.com ND 186
Management; TPG Capital software, technology, and creative skills

Source: Capital IQ, Crunchbase 37

 About AGC Partners

Note: This document is intended to serve as an informative article only in order to further discussion, analysis and independent verification. This document is based
upon sources believed to be reliable, however, we do not guarantee the sources’ accuracy. Unless otherwise indicated, AGC does not believe that the information
contained herein is sufficient to serve as the basis of an investment decision. There can be no assurance that these statements, estimates or forecasts will be attained
and actual results may be materially different. This is not a solicitation of an offer of any kind. To learn more about the company/companies that is/are the subject of this
commentary, contact one of persons named herein who can give you additional information.
 AGC’s Dedicated Education Technology Team
Tristan Snyder
Partner
 Tristan is a Partner in
AGC’s Dallas office
 He has over 13 years of
sector-specific investment
banking experience,
including tech-enabled
services, SaaS, and cloud
technologies
 Tristan has completed
more than 45 M&A and
capital raising
transactions, totaling more
than $4 billion in enterprise
value
 Prior to AGC, he was Co-
Head of Intrepid
Investment Bankers’
software and services
practice
 He holds a B.A. in
Business Admin & Finance
from the University of
Washington
Benjamin Howe
Co-Founder, CEO
 Ben is a co-founder and
the CEO of AGC Partners
 In 30+ years as an
investment banker, Ben
has completed more than
300 transactions
 Prior to AGC, he served as
Managing Director, Head
of M&A and Executive
Committee Member at SG
Cowen Securities, and
prior to that served as
Head of Technology
Investment Banking for the
East Coast and Europe at
Montgomery Securities
 He serves as co-chairman
of Excel Academy, which
has four charter schools in
East Boston, and served
on the board of
Portsmouth Abbey and the
advisory board of Trinity
College
 He holds a B.A. in
Economics from Trinity
College and an M.S. in
Accounting from The Stern
School of Business at
NYU
Jon Guido
Partner
 Jon is a founding partner
and Chief Operating
Officer at AGC Partners,
with a focus on Software
and Internet/Digital Media
sectors
 As Jon approaches 20
years as an investment
banker, he has completed
more than 80 transactions
 Jon helped found AGC in
February 2003,
coordinating the
infrastructure build, capital
raise, and recruiting effort
 In his role as COO, he
works on developing and
implementing the firm’s
financial, operational, and
business development
strategies
 Prior to joining AGC, Jon
worked in SG Cowen's
Mergers and Acquisitions
Group
 He received a B.A. with
honors from Colgate
University
Mike Parker Sean Tucker
Partner Vice President
 Mike joined AGC Partners
in 2017 and is Head of the  Sean is a Vice President
Chicago Office and Project Manager in
AGC’s London Office
 He has closed more than
$20B in transactions over  At AGC Sean has advised
his career on transactions ranging
from sell-side and buy-side
 Mike’s focus areas include
M&A mandates to debt
enterprise software/SaaS,
and equity financings. He
FinTech, security, internet
has been a part of deal
and mobile apps, among
teams spanning a broad
others
sector base within
 Most recently, he was an technology, including
M&A banker with Lazard. Fintech, IoT, Security,
Prior to Lazard, he was Gaming and Vertical
Vice President of Business Software
Operations & Strategy at
 Prior to joining AGC, Sean
SuccessFactors, which
worked at Ernst and
sold to SAP for over $3.6
Young where he led
billion, and prior to that he
engagement teams in the
was a tech banker with
Financial Services Office
Barclays Capital in Menlo
Park  Sean holds a B.S. in
Business Administration
 Mike holds a B.A. in
from Babson College and
Business Administration
a Masters in Accounting
from the Foster School of
from Olin Graduate School
Business at the University
of Business
of Washington and an
M.B.A. from the Tuck
School of Business at
Dartmouth College
39
Top Ranked Boutique Bank – 358 Closed Deals


TOP DEALMAKERS
 #
Firm
Trans.
1. Morgan Stanley 179
2. Raymond James 150
 3. William Blair 150
4. Houlihan Lokey 129
5. J.P. Morgan Securities 124
6.
6. AGC
AGCPartners
Partners 119
120
7. Evercore Partners 119
8. GCA Advisors 117
9. Goldman Sachs 113
10. Jefferies 92
11. Lazard 79
12. Petsky Prunier 79
13. Mooreland Partners 78
14. DCS Advisory 77
15. Pagemill Duff & Phelps 74
16. Bank of America Merrill Lynch 73
17. Robert W. Baird 70
18. Qatalyst Partners 69
19. Arma Partners 68
20. GP Bullhound 68
21. KeyBanc Capital Markets 62
22. Credit Suisse Securities 60
23. Stifel, Nicolaus & Company 60
24. Needham & Company 59
25. 40
Barclays Capital 53
Source: 451 Research
18 Highly Experienced Partners, Sector-Focused

SOFTWARE

Fred Joseph Jon Guido Ben Howe Dennis Hugh Doug Hurst
Rourke Hoffman

Elena Mike Greg Roth Markus Charlie Tristan

Marcus Parker Salolainen Schopp Snyder
SECURITY

Maria Lewis Ben Howe Joe Dews Russ Eric Davis Fred Joseph
Kussmaul Workman
DIGITAL MEDIA & INTERNET

Jon Guido Linda Elena Mike Tristan Sean

Gridley Marcus Parker Snyder Tucker
INFRASTRUCTURE

Rob Buxton Markus Joe Dews Dennis Fred Joseph Doug Hurst
Salolainen Rourke
41
Common Characteristics of an AGC Banking Team

42
AGC Drives Outstanding Outcomes

PE Growth Financings and Buyouts Compelling Strategic Outcomes

EV / Equity Check / EV /
Client Investor / Acquirer Rev. Multiple Client Acquirer Rev. Multiple

$1B / $550M / $400M / 8.5x

8.0x

$145M / $69M / $275M / 7.4x

5.1x

$100M / ND / ND / ND
ND

ND / $65M / $200M / ND
ND

$100M / ND / $172M / 4.7x

ND

ND / ND / $152M / ND
ND

ND / $49M / $90M / ND
ND

ND / $25M / ND / ND
ND

ND / $25M / ND / ND
ND 43
Source: 451 Research
 AGC’s SaaS Performance Exam

AGC is the most active SaaS focused investment bank and has unmatched experience
working with the most relevant SaaS metrics

Not Strong Solid Great

ARR Scale <$8M $8-20M $20M+

ARR 3-Year CAGR 5-20% 20-50% 50%+

Customer Retention 90% 90-95% 95%+

% Subscription <70% 70-90% 90%+

Gross Margin <60% 60-75% 75%+

Rule of 40% <20% 20-40% 40%+

LTV / CAC <3x 3-5x 5x+

ASP/Customer/Year <$25k $25k-250k $250k+

Avg. Contract Length <1 year 2 years 2+ years

TAM $500M $1-2B $2B+

Barriers to Entry Low Medium High

Representative Multiple 2-4x 4-6x 7-10x+

44
 Continued Momentum: 47 Deals Completed in Last 18 Months

financed by

45
Note: excludes nondisclosed transactions.
 AGC’s Strong Bond With Technology Investors

ABRY Partners DST Global Huntsman Gay Global Capital Norwest Equity Partners Silversmith Capital Partners
ABS Capital Partners Edison Partners ICONIQ Capital Norwest Venture Partners Sigma Prime
Accel Partners Elephant Partners IDG Novacap Siris Capital
Accel-KKR EQT Holdings ILONA Capital Oak Investment Partners SoftBank
Adams Street Partners ESQ Capital Index Ventures Oakley Capital Sorenson Capital
Advent International ESW Capital In-Q-Tel OpenView Partners Spark Capital
Andreessen Horowitz Evolution Equity Insight Venture Partners Osage University Partners Spectrum Equity
Apax Partners Font4 Ventures Institutional Venture Partners Paladin Capital Group Spire Capital
Apollo Global Management Formation8 Partners Investcorp Technology Partners Pamlico Capital Spring Lake Equity Partners
Arrowroot Capital Founders Fund Investor Growth Capital Pamplona Capital Staley Capital
Ascent Venture Partners F-Prime Capital Partners JMI Equity Parallax Capital Partners Stripes Group
Audax Group Francisco Partners K1 Investment Management Parthenon Capital Partners Sumeru Equity Partners
AXA Strategic Ventures Front4Ventures Kayne Anderson Peak Equity Partners Summit Partners
Bain Capital Ventures Frontier Capital Khosla Ventures Periscope Equity Susquehanna Growth Equity
Baird Capital FTV Capital KKR Growth Platinum Equity Symphony Technology Group
Balyasny Asset Management Fulcrum Equity Partners Kleiner, Perkins, Caulfield & Byers Polaris Venture Partners TA Associates
Battery Ventures General Atlantic LaunchCapital Providence Equity Partners Technology Crossover Ventures
BDC Capital General Catalyst Partners Legend Capital PWP Growth Equity Fund Temasek Holdings
Benchmark Capital GGV Capital Level Equity QuestMark Partners Tenaya Capital
Bessemer Venture Partners GI Partners Lightspeed Venture Partners Radian Capital Thoma Bravo
Blackstone Private Equity Globespan Capital Partners LLR Partners Redline Capital Thomas H. Lee Partners
Boathouse Capital Golden Gate Capital Long Ridge Equity Partners Redpoint Ventures TPG Growth
Bregal Sagemount Goldman Sachs Lovell Minnick Partners Resurgens Technology Partners TriplePoint Capital
Bridgepoint Capital Gores Group Lumia Capital Revelstoke Capital Partners True Wind Capital
Brown Brothers Harriman Great Hill Partners Macquarie Revolution Growth Union Square
BV Investment Partners Greenspring Associates Madison Dearborn Rho Capital Partners Updata Partners
Canaan Partners Greycroft Partners Mainsail Partners Riordan, Lewis & Haden Vector Capital
Carlyle Group Greylock Partners Marlin Equity Partners River Cities Capital Funds Venrock
Catalyst Investors Gryphon Investors MassMutual Ventures Riverside Company Veritas Capital
CI Ventures GSV Capital Menlo Ventures Riverside Partners Veronis Suhler Stevenson
Clearlake Capital Group GTCR Merck & Co. Riverwood Capital Vista Equity Partners
ClearSky Power and Tech Guggenheim Partners Meritech Capital Partners Rubicon Technology Partners Vistara Capital Partners
Court Square Capital Guidepost Growth Equity Morgan Stanley Runway Growth Credit Fund Volition Capital
Cove Hill Partners Halyard Capital NEA Safeguard Scientifics W Capital
Crestline Investors HarbourVest New Capital Partners Sageview Capital Warburg Pincus
CVC Capital Partners Hellman & Friedman New Mountain Capital Sequoia Capital Waud Capital Partners
Delta-v Capital HgCapital NewSpring Capital Serent Capital Wavecrest Growth Partners
Diversis Capital HIG Capital NextEquity Partners SFW Capital Partners Welsh, Carson, Anderson & Stowe
46
Draper Fisher Jurvetson Highland Capital Partners North Atlantic Capital Silver Lake Partners WestView Capital
AGC Works With Over 500 Global Strategic Buyers

47
 Premier Industry Investor / Buyer Conferences

San Francisco
March, 2019



Boston
Boston
October, 2018
October, 2018

London
June, 2018


48
Deep Domain Sector Expertise in Over 60 Technology Sectors

49
Global Expertise: 73 Cross-Border Deals in 19 Countries

sold to

sold to

Sold to

International Deal Count

Canada – 12
United Kingdom – 15
France – 4
Germany – 3
Switzerland – 1
Sweden – 4
Israel – 5
Finland – 1
Netherlands – 7
Iceland - 1
Ireland – 2
South Africa – 2
Czech Republic – 1
India – 3
China – 1
Japan – 5
South Korea – 5
Australia – 1
Singapore – 1
50