Venture capital investors show a strong preference for investing in the U.S. educational industry, according to a survey conducted by KnowledgeQuest Ventures LLC, New York, and Education Week magazine.
KnowledgeQuest Ventures, which provides business development and financial advisory services to startup and growth-stage education businesses, surveyed 51 firms in educational businesses.
In the next three years, 65% of the investors polled said they will consider investments in corporate training, 45% in post-secondary schools and 57% in adult education. Approximately 8% of investors surveyed said they were planning to invest in programming for at-risk children, 20% in child care and 24% in K-12 education.
About 55% of firms questioned indicated a below-average deal flow, citing too-few quality business plans as the main obstacle. Return on investment and market size and growth rate were the main reasons given for interest in the industry.