Reposted from BostInno:
K-12 ed-tech startups saw a 32 percent increase in venture capital over the previous year, securing $642 million in 2014, according to a blog post published by Vivek Murali, an associate partner at nonprofit venture philanthropy firm NewSchools. Helping fuel that growth were Desire2Learn, Harvard alumni-founded Clever and Remind, which raised $85 million, $40.3 million and $55 million in 2014, respectively.
Over the last two years the K-12 ed-tech sector has seen the median Series B round size increase by 49 percent, with several founders focused on how they can tweak the freemium model in a way that benefits teachers, but also helps them turn a profit. There is an increase in companies offering options for free or low-cost teacher adoption that are accompanied by premium site- or district-wide licenses.
Trends shaking up the K-12 space, according to NewSchools, include: “home-to-school communication platforms,” such as ClassDojo and FreshGrade, which streamline communication between parents and educators in an age where one in every five people in the world own a smartphone; and data analytics tools, such as Boston’s Ellevation Education, which raised $2 million in July to help schools better assess English Language Learners’ performance and readiness.