Drivers for EdTech Market Valuation Changes

2 replies
  1. Donald Clark
    Donald Clark says:

    Great work here. Just a couple of observations.
    Not sure that LTG is in same category as rest – not really an ‘Ed’tech company as largely corporate and price down as not an integrated entity. But generally your analysis is spot on. PE organisations, Learning Pool is a good example, bought at $200 million in 2021, will still go for growth as there’s a premium on scale, as they are acquiring and acquisition prices will fall. That’s good for well capitalised entities. Edtech may wobble, as US enrolment down for 12 years in a row and so on, but corporate market will remain strong, as classroom training died a death during Covid. Recession will hit value of all, of course. Great work as always.

    • Phil Hill
      Phil Hill says:

      Fair point, as LTG is mostly corporate – we need a name to distinguish academic EdTech from corporate EdTech, and even straddling EdTech. As for Learning Pool, I’d be willing to bet that they were not in ‘growth at all costs’ mode and were already profitable, or close to it. In that case, growth and bargain M&A make a lot of sense. Any idea if that is accurate?

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