As Asia transplants the US as the largest education market and a center of innovation, what will be the impact?

1. Asia as the World’s EdTech Lab:
What It Means and Why it Matters
Todd Maurer
March 19, 2015

2. Education and Learning 2.0
China Online Conference 2015 - Maurer

3. “Middle Income” Drives Higher Education Demand
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Low income countries
Lower middle income countries
Middle income countries
Upper middle income coiuntries
High income countries
Source: UNESCO Institute of Statistics, accessed 2015
2005
138
million
2025E
270 million
Students Enrolled in Tertiary Education, 1999-2012

4. Venture Funding of Education Companies: 1997-2014

5. M&A Transactions in Education: 2010-2014
5China Online Conference 2015 - Maurer
In the past few years, global education companies have emerged as the leading source
of strategic investment and acquisition valued at $100m +
Source: Educated Ventures LLC

6. Emerging Higher Education 2.0
China Online Conference 2015 - Maurer
Source: Educated Ventures

7. Comparative K12 Enrollments v Affordability
K12 Enrollments (in millions) in Asia and Per Capita GDP (US$, PPP)
China Online Conference 2015 - Maurer
SINGAPORE (^^) USA
(0.52M) (55.5M)
$40,000
ASIA COMPETITOR SET
TOTAL K12 ENROLMENTS = 556 MILLION
US K12 at 1/10 SIZE
KOREA
$30,000 (7.2M)
$20,000 CHINA
(2030 PPP LEVELS)
MALAYSIA
(5.4M) INDIA
(2030 PPP)
$10,000 THAILAND CHINA
(10M) (20.5M) (198.7M)
PHILIPPINES
VIETNAM INDONESIA
(14.8M) (51M) INDIA
(246 M)
40M 80M 150M 200M 220M 220M
CURRENT LEVEL OF STUDENTS

8. Pre-Primary Education: Enrolments (GER) and Percentage Private by Age
OECD avg. = 81%
US avg. = 69%
China avg. = 54%
0%
20%
40%
60%
80%
100%
120%
140%
Aus (4) China (4-6) Japan (3-5) Malaysia
(4-5)
Philippines
(5)
Korea (3-5) Thailand
(3-5)
Vietnam
(3-5)
Gross Enrollment Rate % Private
Asian variance at early
childhood participation
level with growing
private alternatives for
families
Source: UNESCO Institute of Statistics
Note: Country age ranges for this data set displayed in brackets
Pre-Primary Education Activity

9. Student Projections to 2030
0
10
20
30
40
50
60
1970 1990 2010 2020 2030
Emerging Asia
China
India
Indonesia
Korea
Malaysia
Philippines
Singapore
Thailand
Vietnam
Tertiary enrolments are
growing rapidly with
significant runway to 2030
from relatively low historical
levels
Percentage of Students Aged 15+ with Tertiary Education
(1970-2030)
Source: Asia Development Bank

10. Asia and Global E-Learning Leadership
27.1
8.1
1.2
11.5
0.6
0.5
2.2
0.0 5.0 10.0 15.0 20.0 25.0 30.0
North America
Western Europe
Eastern Europe
Asia
Middle East
Africa
La n America
2016F
2013
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
North America
La n America
W Europe
E Europe
Asia
Middle East
Africa
Asia’s leading growth markets on 5 year
projected basis include: Vietnam (+45%),
China (+30%), Thailand (+34%), and
Malaysia (+39%)
Asia is driving e-learning revenues across
content and services, projected to reach
$11.5 billion by 2016.
Global Location and Percentage Growth in E-Learning (Self Paced)
(2011-2016)

11. Mobile Learning by Region (2011-2020 in USD Billion)
Asia (esp. Emerging Asia) will
drive market value to exceed
$12B by 2020.
Mobile Connectivity and M-Learning

12. ASIA K12
$500-700B
PRIVATE
$50B
INTL SCHOOLS
$4B
ELL
$27B
STUDY
ABROAD
$30B
Sources: Ambient; GIA; British Council; Educated Ventures estimates
Aggregate = $750B +
Growth to 2020 significant
Market Sizing in USD by Sub-Segment
Asia as Epicenter of English Language Training

13. “Serious” Games
1,548
2,309
2,364
6,648
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000
2012 Revenues
2017 Revenues
Game-based Learning Simula on-based Learning
World Revenues for Game-Based Learning and Simulation
Learning (2012 and 2017F)
Source: Ambient Insight 2013
Note: Definitions based on research from Alessi and Trollip
* Does not include hardware
64% of Global
Games-Based
Learning
27% Simulation
ASIA in 2017
N. AMERICA in 2017
25% of Global
Games-Based
Learning
41% Simulation

14. Youthfulness of Online Audiences Build to Future
Over 75% of Indian
internet users
under age 35
(China = 57%, US =
48% ).
Asia’s youthful
pipeline creates
greater capacity for
overall growth in
connectivity.
Demographic Composition of Online Audience in Asia-Pacific
Survey 2013 (Aged 15+)
Source: ComScore

15. Labor Market Pressures to 2025
China Online Conference 2015 - Maurer
India will require 300
million new jobs through
2050 (Pakistan,
Bangladesh and
Indonesia area also likely
see expanding
operations).
In Asia, employment
quality and demand will
drive demand going
forward

16. The Increasing Use of Corporate E-Learning
China Online Conference 2015 - Maurer
54％ of Fortune 500 firms
using some form of online or
belnded learning.
50% of this training by value
occurs in US companies.
In 2013, total revenue:
US$300
BILLION
As Global R&D shifts abroad, the needs of corporate training are increasing amongst
multinational firms and Asia-based congolmerates
Source: trainingindustry.com;

17. Venture Capital in Education: Now Active in Asia
0
100
200
300
400
500
600
700
800
900
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Asia VC (US$m) No of Deals (RHS)
17
With overall VC volumes up worldwide, Education sector VC investments in the US
reached with more than $1.5 Billion or xxx the level in China, which was approximately
$300 million.
VC Investment in Asia-Pacific ($US Million) ,
1994-2014
VC Investment in EDUCATION in US and China
1994-2014 ($US Million)
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
US VC in Educa on (US$m) China VC in Educa on (US$m)
Source: AVCJ

18. Recent EdTech Start-Ups in Asia
18
Start-Ups/Venture Investors/Partners Segment Country
QLL B Dash Ventures Early Education language apps Taiwan
Know Re Softbank, KTB, Sparklabs Adaptive Learning Korea
Kelase PT Insights Investment Social Learning Network Indonesia
Zenius Founders Learning Platform (Crit Thinking) Indonesia
Brainly Founders Social Learning Network India, ASEAN
Kungfu Math Kungfu Interactive Gamified Learning Singapore
Geeks College SIG/Blue Run IT Career Skills, Video based China
ChaseFuture Banyan, Harbor Pacific Study Abroad China
Uniquedu Fosun Ventures MOOC China
Rockit Online Learn Capital Test Preparation (IELTS, TOEFL) Vietnam
Delta Viet Topica Accelerator IT/Career Skills/Certificates Vietnam
Xingshuai Teach Northern Light, Legend Capital Graphics and Design Learning China
Revo Tech Founders Education Apps Myanmar
LessonsGoWhere Founders Online to Offline Lessons Singapore
ClassDo Founders Virtual Knowledge Platform Japan
Mana.bo Benesse Test Preparation Japan
Taamkru 500 Startups, Red Dot, Ookbee Early Education Thailand
Asia-based education start-ups are expanding rapidly across with region, to tackle local
educational challenges of access, quality and affordability.

19. Education Businesses and Investment: The Road Ahead
Source: GSV Advisors
After rapid growth, “education capital” still remains a fragment of other industries in the
US (eg. Healthcare) despite its large proportion of total GDP, with even lower
representation overseas.