China's Online Education Market Is Still Very Attractive For Investors

Source:iResearch September 04,201712:43 PM
Number of the financings reached the top in 2015, totaling 519, and then declined to 428 in 2016; Meanwhile, more than 60% of the financing were at the angle round or A-round, and only a few entered C-round and after. Top companies only had a small share in online education market.
 
Number of the financings was as high as 176 with a total amount of 4.95 billion Yuan in 2016, while it dropped by 93 to 83 with a total amount of 39.2% in 2017. Angel-round financing and A-round financing still took a dominant role in the general financing.
Compared with in 2016, the mergers & acquisitions and strategic investments increased significantly in 2017 with their shares increasing from 2.9% and 2.3% in the previous year to 6.0% and 9.6% in 2017. This indicates that the mergers & acquisitions in online education industry increased obviously and cooperation in the upstream and downstream of the industry started to take form.

Judging from the number of the financings, K12 and vocational education got the majority of financings, but number of interest education and educational informatization financings rose tremendously in 2017, taking up about 16.9% of the total financings, and more than 70% of the financings in educational informatization focused on platform services. Meanwhile, the financing amount in vocational education was far much higher in 2017 than in 2016 with a share of 37.8%. This probably results from the matured profit model of online vocational education.


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