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By Sam S. Adkins, Chief Research Officer
Seattle, WA (PRWEB) February 27, 2008 -- (Release updated on July 16th, 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 half of 2008 alone, investment has already reached 74% of the 2007 total."
The research indicates that investment in learning companies peaked in 2000 at over $1.04 billion. It declined rapidly after that to bottom out in 2004. Private investment has been steadily increasing since 2005, but has spiked in the last six 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 August 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 half of 2008 has reached 74% of the 2007 total and now totals more than all the investments made in the entire year of 2006
Key Questions answered in this report:
- What learning technology products are attracting the largest investments?
- Are learning technology products designed for particular buying segments attracting investment?
- What impact is the current recession having on private investment in the learning industry?
- What are the differences between the current investment patterns and the patterns over the last 10 years?
- Which learning technologies are venture capital and private investment firms avoiding?
These questions are answered in a new Ambient Insight "snapshot" report called, "Private Investment Trends in the US Learning Technology Industry: 1999-2007 Longitudinal Analysis." The report includes a detailed analysis of the funding amounts across eight types of learning products since 1999 through 2007, and the first half of 2008. 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 4-5 years. The report identifies the types of companies, products, and services that are attracting that investment."
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