As EdTech slips in the U.S., India and China see big growth

India has seen deals go up over 300 percent since 2014, while China's have grown over 400 percent

As EdTech has begun to fall in the United States, with the space now on track to see its first annual decline, it only makes sense that the rest of the world would start picking up some of the slack. Specially it has been Asia that has seen its EdTech spaces start to grow in recent years.

In 2011, over 80 percent of all EdTech deal share came from the United States, according to data from CB Insights, while less than 20 percent came from other parts of the world. 

The numbers haven't flipped, but they have started to get much closer. In 2015, it was 60 percent of deals in the United States, a 27 percent dip, while 40 percent were from the rest of the world, a 122 percent increase.

So far this year, the U.S. has seen some gain, getting the nmber back up to 64 percent.

So while the U.S. loses share, three other countries have seen their shares rise.

The biggest beneficiary has been India, which had over 50 ed tech deals in 2015, a record for the country. Since 2011, the volume of deals has gone up up 315 percent, 

This year the number of deals is expected to rise another 16 percent to 63; there have already been 18 deals done so far this year.

After that comes China, which actually was the second largest in terms of deals in 2013 and 2014, before India overtook it last year. From 2011 to 2015, deals rose 483 percent, from just 6 to 35. 

Growth has slowed, though, and this year deals are expected to drop 60 percent to only 14. 

The third largest growth has been seen in the United Kingdom, where deals rose 163 percent from 2011 to 2015. Like China, it is expected to see deals drop in 2016 by 52 percent to 14 in all. 

Inside, the United States, EdTech is dominated by five states, with California leading the pack, of course. It has seen 493 deals since 2011. Last year alone it had over 100 deals, though it is not expected to see 90 deals in 2016.

After that comes New York with 208; Massachusetts, with 141; Pennsylvania, with 67; and Illinois with 60 deals. Every other state saw fewer than 50 deals. 

EdTech in Q1

The number of dollars in the EdTech fell to their lowest level in seven quarters in Q1, with $361 million invested. The last time there was less funding put into EdTech  companies was in the the second quarter of 2014. 

Funding fell 75 percent quarter-to-quarter, though, to be fair, Q4 was something of an anomoly, with $1.3 billion invested. That was thanks to mega deals in companies like HotChalk , which raised $230 million; Tutor Group, which raised $200 million; HuJiang, which raised $157 million; and Udacity, which raised $105 million. 

In fact, that is the only quarter to ever see more than $1 billion invested. Combine that with the low funding for this past quarter and the dropoff seems more dramatic than it perhaps actually is. This is now the third quarter out of the last four, minus the historic Q4, to see funding drop, so Q1 i

The EdTech space is now projected to see $1.3 billion invested in 376 deals this year, which would amount to a fall of 57 percent in dollars, and 23 percent in deals. 

That was after activity EdTech startups hit record highs in 2015, when funding went up 64 percent, to over $3.1 billion, and the number of deals rose nearly 10 percent to 491. Now it is expected to the lowest amount of funding since 2013, and the lowest number of deals since 2012.

(Image source: experfy.com)