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23rd June 2011

Post with 11 notes

Investment in Education

The PEs and VCs are wanting to invest in teh education sector but only if it is big. I wonder how the garage cos like Microsoft and Google cd hv become so big without starting with a csle up model?

Pity some of our ideas are suffering for want of finacial back up as we see our ideas are getting translated by others… hmm

It is less abt money and more abt seeing our ideas taking shape :(

Amplify’d from www.vccircle.com

The attraction is a roughly $85 billion education sector, more than half of which is funded privately in a country where state schooling is often so bad that most families who can afford it send their children to private school.

While just 7 per cent of India’s primary and secondary schools are private, they attract 40 percent of pupils, according to CLSA. Parents are happy to spend their savings to create opportunities for the children who will support them in their old age.

"The private sector will fill in this gap and drive the change and this is what makes it very attractive," said Aneja, whose firm runs a $100 million education fund and plans to close its second investment in the next two months.Few companies with scalable businesses has kept a lid on private equity in education and means valuations can be high — a common complaint in an $8 billion Indian private equity sector where cash-heavy funds chase scarce opportunities.

"Increasingly the education sector is acquiring the status of being a hot sector and because of that a lot of education entrepreneurs are beginning to have unrealistic valuation expectations," New Silk Route’s Kurian said.

The sector’s biggest exit saw British publisher Pearson pay $127 million for 59 per cent of Indian online tutoring firm TutorVista from three investors including U.S. venture capital firms Sequoia Capital and Lightspeed Ventures.

Read more at www.vccircle.com
 

Tagged: educationindiannew silk routesectorsequoia capital

  1. srinin posted this