Reposted from Fortune:
In 2014, venture funding for education technology reached $1.87 billion dollars. It’s expected to hit $2 billion this year. That’s a big jump from $385 million in 2009, according to CB Insights, the first year the venture capital research firm started tracking education funding.
“The education space is attractive because it’s a big and important part of the economy,” said Rob Hutter, managing partner of Learn Capital an education based venture capital firm. “The edtech companies that get funding can be important 50 years down the line, and not just in a few years.”
And it’s a good business to be in, said Bob Sun, founder of online math site, First in Math. “There’s a high profit margin with no warehouses and not much cost except for research and development,” explained Sun, who also said his firm has grown 20% in the past six years and hasn’t needed outside funding. But while many sing the praises of education technology in the classroom, some question if it’s having the desired effect.