Education Quarterly Investment Report: Year-End 2001 Review

Venture capital investment in education experienced a record-breaking drop in 2001 as the education industry was not immune to the dismal climate of the broader economy. Nearly $800 million of private equity was invested in education ventures in 2001, down 73 percent from the $2.9 billion invested in 2000.

The flood of analysis detailing the excesses of 1999 and early 2000 is stale and offer limited value to entrepreneurs and investors who see secular promise in the education industry. In the year-end EQIR report, Eduventures takes a forward-looking approach to analyzing investment activity in the education industry. By leveraging our conversations with educators and education executives, Eduventures highlights six attractive market segments that offer compelling business fundamentals and potential for scale.

Eduventures also presents its standard analysis of venture capital and M&A activity in the education industry in 2001. Special emphasis is paid to highlighting trends in pre-K-12, postsecondary, and corporate sectors.