Unitus Ventures’s “Build to Scale: Edtech Report 2017” Reveals Large Disconnect Between Investors and Entrepreneurs

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Findings from a survey of 152 EdTech entrepreneurs and 15 investors.

5 September 2017, Bangalore. Unitus Ventures, India’s leading impact venture fund investing in early-stage startups innovating for the masses today released a report ‘Build to Scale: Edtech Report 2017.’ The report covers trends in India’s EdTech space with a focus on varied business models, investor perception, funding requirements and forecasts, entrepreneur and consumer challenges and scaling strategies – all of which will help steer current and future EdTech entrepreneurs.

Key highlights –

  • Overall Funding: US$159 million of disclosed funding in to the EdTech sector in 2016 with 81 per cent going to a single company. The median funding round has fallen to US$450,000 in 2016 from US$950,000 in 2015.
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  • Profile of Respondents: Survey includes 152 entrepreneurs with an average of 4.5 years of startup experience and 15 investors who have 55 aggregate years of investing experience.
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  • Most preferred sub-sector is K12 – 37 per cent businesses are operating in this space and there is a whopping 92 per cent investor funding interest.
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  • Least preferred sub-sectors are vocational training and school operations with 53 per cent and 80 per cent investors showing disinterest respectively, thereby, indicating a deep disconnect.
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  • Investor interest: Investors are keen to invest in companies that have proven their business model and gained sufficient traction i.e. at series A and B stage.
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  • Top 2 success factors of an EdTech startup: Unit economics and efficacy.
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  • Top 2 entrepreneur challenges: Customer acquisition and high cost of sales, at 66 per cent and 61 per cent respectively.

You can download the complete report here.

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About Unitus Ventures

Unitus Ventures is the leading impact venture fund investing in businesses innovating for the masses in India. Unitus invests in sectors including healthcare, education and financial technology. Unitus Ventures is backed by leading individual, family office, and foundation investors in the USA and India. Unitus Ventures is part of the Unitus Group, a premier financial services group operating in India and other emerging markets since 2000. Unitus Ventures is based in Bangalore and is a member of the Capria Network.

 

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