On a year-over-year basis, Ed Tech funding jumped 55% while deals increased 5%. A number of ed tech companies are nearing the $1 billion valuation mark.

Funding to education technology companies showed no signs of a slowdown in 2014. According to CB Insights data, Ed Tech companies ranging from K-12 APIs to MOOCs to student-teacher messaging apps raked in $1.87B across 350 deals – a new record for both deals & dollars in the space. This data first appeared in a New York Times article detailing Silicon Valley’s rising interest in disrupting education.

2015 is already off to a good start for ed tech as well with online video tutorial company Lynda.com‘s $186M financing deal from TPG Capital, which came at a reported valuation near $1B putting them into unicorn valuation territory. On a year-over-year basis, Ed Tech funding jumped 55% while YoY deals only climbed 5%. The 2014 funding total was 110% higher than 2012′s tally.

Free Bonus: Ed Tech Whitepaper
We detail the top investors, companies, financing and M&A trends within Ed Tech.

edtechfundingrecordEarly-stage deals still strong

Peeling back the stage breakdown of companies receiving investment in 2014, we see early-stage deal activity in the Ed Tech sector remains quite strong. Over 3/4ths of deals came at the seed or Series A stages while mid-stage deals took just over 15% of Ed Tech deals.

2014edtechdealsMid-stage deals get hefty

On the funding front, mid-stage deals at the Series B and Series C stages accounted for a collective 48% of Ed Tech dollars deployed in 2014. Big mid-stage Ed Tech rounds last year included IT training firm Pluralsight‘s $135M Series B, parent-teacher messaging app Remind‘s $40M Series C and integrated learning platform Desire2Learn‘s $85M Series B.

edtech2014fundingBig valuations within Ed Tech

While 2U and Chegg‘s post-IPO performances have been mixed, the Ed Tech industry is seeing a rising number of highly valued private companies. Notably. both Lynda.com and Pluralsight are now valued near $1B. The chart below looks at a handful of private Ed Tech valuations over the past two years from the CB Insights database, highlighting the growing valuations in the space.

Select Private Company Ed Tech Valuations
Company Description Investors Valuation
Lynda.com Online video tutorials and training Accel Partners, Meritech Capital Partners, Spectrum Equity, TPG ~$1000M
Pluralsight Online developer and IT training Insight Venture Partners, Sorenson Capital, Iconiq Capital ~$1000M
NetDragon Education Mobile educational products IDG Capital Partners, Vertex Venture, Alpha Animation $477.5M
Open English Online English language learning Flybridge Capital Partners, Kaszek Ventures, Insight Venture Partners, TCV $350M
Declara Personalised learning tools Founders Fund, GSV Capital, Data Collective, EDBI, Linden Venture Capital $100M

Related: The Largest 2014 Ed Tech Rounds

Looking for the most comprehensive set of private company Ed Tech financing and exit data? Check out the CB Insights Venture Capital Database. Sign up free below.