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By Sam S. Adkins, Chief Research Officer
Seattle, WA (PRWEB) February 27, 2008 -- (Release updated on June 26th, 2008) According to a new longitudinal study by Ambient Insight on the private investment trends in the learning technology industry, capital is flowing at the highest rate since the last recession.
"We are seeing a dramatic spike in private funding activity," reports Sam S. Adkins, Chief Research Officer and industry veteran. "2007 funding was the highest since 2001. In the first quarter of 2008 alone, investment has already reached 64% of the 2007 total."
The research indicates that investment in learning companies peaked in 2000 at over $900 million. It declined rapidly after that to bottom out in 2004. Private investment has been steadily increasing since 2005, but has spiked in the last five quarters. The research provides compelling evidence that private investment firms are now targeting new types of companies and products.
The report will be released in July 2008 and will include activity for the first two quarters of 2008.
Key Findings in the report include:
- Funding in 2007 is the highest since 2001
- Funding in the first quarter of 2008 has reached 64% of the 2007 total and now totals more than all the investments made in the entire year of 2006
- Investment in Self-paced eLearning products designed for the corporate buying segment dominated between 1999 and 2003, but funding for these types of products has dropped dramatically in the last four years and now trails other product types
- Digital reference-ware, Collaboration-based Learning, social network-based learning (peer-generated), and learning services firms, respectively, are now attracting the largest investments
- Funding for Simulation-based Learning and Game-based Learning products, particularly virtual world platforms designed for young children, has increased significantly in 2007. This trend continues in the first two quarters of 2008 and this product type is now on track to outpace investment in Self-paced eLearning as well
"The investment trends are different this time," comments CEO Tyson Greer. "Companies that sold installed technology and Self-paced eLearning content to large corporate buyers were the primary recipients of funding between 1999 and 2003. This time capital is flowing to companies that are developing new types of learning products for buyers outside the corporate market."
The data is included in a new Ambient Insight report called, "Private Investment Trends in the US Learning Technology Industry: 1999-2007 Longitudinal Analysis." The report will be released on July 5th and includes a detailed analysis of the companies and funding amounts across eight types of learning products since 1999 through 2007. The report also identifies the growing amount of capital flowing to the Learning BPOs and training outsourcing companies since 2004.
"We consider venture capital activity to be a leading indicator signaling new revenues for the industry," adds Adkins. "VCs, angels, and investment banks expect a return on the investment in the next 3-4 years. The report identifies the types of companies, products, and services that are attracting that investment."
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