Must Read Blog Higher Ed November 1, 2014

Capital Flows to Post Secondary Education

For-profit, early-stage investment in the postsecondary education ecosystem more than tripled from 2010 to 2013, and investments through October 2014 suggest continued growth in the amount of capital flowing into postsecondary-oriented businesses. Capital flow increases since 2010 are largely driven by increased volume in seed and early-stage venture capital investment. The Education Delivery and Software/Services segments have seen the most significant levels of early-stage investment in this period. A closer look at investments in companies in the Education Delivery segment reveals that dollars are increasingly directed to non-credit, non-accredited companies (e.g., bootcamps) seeking to augment, and in some cases replace, traditional postsecondary education models.

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