The impact of the epidemic has not dissipated, and huge financing is difficult to cover the industry downturn.
Editor’s note: This article comes from the WeChat public account “Blackboard Insight” ( ID: heibandongcha) , author: source.
Introduction
Affected by the epidemic, a total of 20 financing events occurred in the education industry in March 2020, a decrease of 14 compared with the same period in 2019. The two largest financing events in March 2020 were the USD 1 billion Series G financing obtained by Ape Coaching and the 700 million RMB strategic financing obtained by Palm Reading Technology. It is worth noting that the financing of Ape Coaching is also the largest financing event in the education industry in the past six months. In March 2020, the overall financing amount of the education industry was close to 10 times the same period in 2019. Behind the surge in data, what happened to the education industry?
(Note: The amount of undisclosed financing events is not counted according to the usual practice. In order to facilitate statistics, we calculate the amount according to the rule of taking intermediate values-millions of financing to take 3 million to calculate; tens of millions of financing to take 30 million to calculate; in addition, for the sake of conservativeness, we take 6 million to calculate for nearly 10 million financing, and 6 million to 36 million RMB for nearly 10 million US dollars; 10 million refers to 10 million; nearly 100 million refers to 60 million. ; Billion yuan refers to 100 million yuan. Attachment: financing time is calculated based on media disclosure time)
01 financing round distribution
According to the data, the number of financing companies is still concentrated in the early stage of financing. Angel round and A round of financing totaled 12 cases, accounting for 60%. It is worth noting that there was no seed round financing event in March. In addition to the large business background of the development of the education industry, the impact of the epidemic is also an important reason for the change in the investment trend. The development of the epidemic has made it difficult for start-up companies to maintain cash flow. Many small and micro enterprises have been affected and their development has been limited.
02 Geographical distribution
As you can see from the chart, financing in March 2020 is more geographically concentrated. Beijing ’s 10 financings accounted for up to 50% of the total. In the past, Shanghai, Guangzhou, and Shenzhen all experienced reduced financing in March. This is closely related to the general decrease in the number of investment and financing during the epidemic. The severe form of the epidemic from the end of February to the beginning of March has also reduced the number of overall financing events in March and implemented it in various regions, and the overall financing is more inclined to the frontier of education development.
03 financing volume
In March 2020, the financing volume was concentrated in the tens of millions, a total of 6 cases, accounting for 30%, and this month also saw the largest financing event in the past six months. The $ 1 billion Ape Coaching G round of financing accounted for 2020 83.7% of total financing in March. In addition, the financing of Palm Reading Technology is also very interesting. According to the blackboard insights of previous data, the financing amount for the entire month of March 2019 was only 749 million, while the financing of Palm Reading Technology alone has reached 700 million yuan. The occurrence of these two financing events is also the reason why the amount of financing can be close to 10 times in the same period in March 2020 when the overall financing amount fell by 41%.
04 subdivided fields
In the education industry financing circuit in March, the differentiation of each subdivision circuit is not obvious. Although STEAM is in the leading position, it is still not outstanding enough. However, the very hot K12 education field in the industry has only received one financing in March. Based on the 2019 annual data, it can be seen that the STEAM track does have a rising trend at this stage. The leading position of the K12 education track may indeed be gradually adopted by STEAM Replace.
05 Attached master list
Conclusion
Overall, the form of financing in March was not as exciting as the superficial data. The emergence of “super financing” is undoubtedly the recognition and affirmation of the industry track by the outside world, but excluding these two huge share of financing Looking at the financing in March 2020, both in terms of volume and volume, there has been a significant decline compared to 2019.
In March, which seems to have seen a surge in financing data, the financing situation was not optimistic. Part of the reason for this phenomenon was also attributed to the severe situation of the epidemic in the previous period. Although the funding of US $ 1 billion has given a strong boost to the overall education industry, it still requires long-term consideration on how to develop the education industry after full recovery.