Great News: From now on there is an Exit for EdTech Start Ups

What a great start for the weekend. Pearson’s Director of Digital Strategy confirmed on a media briefing in London this morning that

[…] there is definitely an M&A strategy. We’ll be focusing on digital service providers and acquiring great technology.

This is big news for online education start ups which might look for an exit one day.

Pearson already has a record of partnerships with and investments in a couple of online / mobile companies like Livemocha or Mobiledu. The possibility that Pearson is now actually aquiring tech start ups like Microsoft, Google, Facebook or Twitter do is really great.

Up to now this was kind of a missing link for me as none of the above have shown an actual strategy in education, at least not that focused that it would lead into acqusitions of edtech start ups.

Sure, we now have to wait if Pearson pulls out the wallet and actually buys a company but as soon as that happens you can be pretty sure that other publisher / media companies will follow suit and supercharge the edtech sector.

Read more about the Pearson announcement on TechCrunch Europe.

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  • Andrew Playford

    It will be interesting to see if Pearson has the stomach to pay the exit prices that the VC investors in edTech companies will expect…

    • KirstenWinkler

      I think they will go the Google way and acquire small bootstrapped start ups with a small or none funding at all.

      It's more about the technology and the developers, I think.

      • Anonymous

        I am the founder of an EdTech startup with VC investment. M&A deals in the Edtech space is not a rare phenomenon. You can look at past companies that Blackboard and Pearson have bought in the past and you can see they do pay sizable sums for edtech companies they want. I've seen deals in the range of 100 million from blackboard alone.

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