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2015 Edtech Investment Spikes to $3.76 Billion in First Three Quarters

New Ambient Insight Whitepaper Documents Historic Highs in Global Learning Technology Investment and Unprecedented Levels of Deal Flow Between January and September 2015

SEATTLE, Oct. 5, 2015 /PRNewswire-iReach/ -- The investments made to learning technology companies across the planet in the first three quarters of 2015 were the highest in the history of the learning technology industry and far exceed the total amount for the entire year of 2014. Investments blew past the $3 billion threshold, which has never been breached in the history of the industry. Between January and September 2015, a total of $3,761,391,600 was invested in learning technology companies across the globe, according to a new whitepaper from Ambient Insight called "Q1-Q3 2015 International Learning Technology Investment Patterns."

The free whitepaper can be downloaded from Ambient Insight's Resource Library here:

Ambient Insight's Q1-Q3 2015 International Learning Technology Investment Patterns

"I have been working in the learning technology industry for over 30 years and I am astonished by the spike in investment," reports Sam S. Adkins, Chief Research Officer.  "Not only is the investment total in the first three quarters of 2015 breathtaking, but the sheer volume of deal flow is striking. In the first three quarters of 2015, 473 companies on the planet were funded; this is 39% higher than all of the deals made in the entire year of 2014."

In the first three quarters of 2015, consumer-facing companies accounted for the highest number of deals and the vast majority of funding. Over $1.97 billion went to consumer-facing companies followed by corporate-facing companies at $782.4 million and PreK-12 companies at $571.4 million, respectively. Of the 473 deals made in the first three quarters of 2015, 210 deals were made with consumer-facing companies.

"Learning technology companies in China continue to attract the lion's share of investments," says Adkins. "$1.2 billion went to 36 learning technology companies operating in China; this was 33% of the total investment that went to all companies combined around the globe in the first three quarters. Economic conditions are challenging in China in 2015 with a stock market crash and a significant devaluation of the yuan. So far, the adverse economic conditions in China have not had a significant impact on edtech investment activities. In fact, investors are now describing the economic situation in China as an environment conducive to investment."

Two significant investment patterns emerged in the first three quarters of 2015: the sharp spike in investments made to behavior modification companies and a new investor interest in interactive mapping technology.

Behavior modification and learning are synonymous. Behavior modification is known as structured learning by instructional designers.  Behavior modification is formally defined as Cognitive Learning in Ambient Insight's Research Taxonomy. Behavior modification is a staple in the training and education industry and used to improve (modify) employee performance.

"Before the first three quarters of 2015, there was never more than $50 million invested in commercial Cognitive Learning companies in any given year," comments Adkins. "By the end of the third quarter, a total of $226.5 million had been invested in behavior modification companies. There were eighteen deals made in the first three quarters of 2015, more than double the eight deals made in 2014."

Another interesting trend is the investor interest in digital cartography and mapping companies. These companies develop what Ambient Insight defines as Digital Reference-ware and Location-based Learning. Maps are inherently related to procedural learning in the same way recipes, product manuals, flowcharts, periodic tables, architectural diagrams, star charts, and schematics are related to learning. In the first three quarters of 2015, $72.0 million was invested in ten cartographic and mapping companies. This is significant considering that there were no companies of this type funded in 2014.

"Some of the most extraordinary mapping innovations are now emerging around so-called indoor mapping and Indoor Positioning Systems (IPS) that work inside locations where GPS does not function," comments Adkins. Six of the ten mapping companies funded in the first three quarters are selling new IPS products. "Museums, galleries, and tourist venues are now avid adopters of IPS systems. For example, the American Museum of Natural History in New York City and the Royal BC Museum in Victoria have both installed IPS for their patrons."

"China was not the only beneficiary of funding across the planet," adds Adkins.  "In the first three quarters of 2015, an additional $216.5 million went to 48 learning technology companies operating in India and an unprecedented $107.4 million was invested in thirteen learning technology companies operating in Brazil."

Media Contact: Sam Adkins, Ambient Insight, 360-805-4298, [email protected]

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SOURCE Ambient Insight

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