The timing could not be better. We are at ASU+GSV in San Diego and proud to share the Global EdTech Deep Dive we co-authored with StartUp Genome and the Global Entrepreneurship Network (GEN) as part of the 2018 Global StartUp Ecosystems Report. This is our first contribution as ‘HolonIQ’, the Global Education Intelligence Platform Maria and I are co-founding as we farewell Navitas. More on that here.
Released today at the Global Entrepreneurship Congress (GEC) in Istanbul, GSER 2018 features strategic startup, investment and policy insights from over 10,000 founders in 45 cities. The GSER informs public and private decision makers all over the world about what actions they can take to build vibrant startup ecosystems. This years report analyse key sub-sectors such as EdTech and Artificial Intelligence across 45 different ecosystems and looks at how local connections affect company performance and what makes up an entrepreneurial mindset.
The full report is over 150 pages of insights, charts and incredible goodness that you will need many sittings to get through. I can barely read last years report cover through the coffee stains that mark session after session of awesome insights. Here is a really quick grab on the major global themes while you print yours off…
The Global Startup Ecosystem still growing rapidly in terms of VC investment and Exit Value
- Global venture capital investment in startups hit a decade high in 2017, with over $140 billion invested in startups.
- Total value creation of the global startup economy from 2015 to 2017 is at $2.3 trillion — a 25.6% increase from the period between 2014 and 2016.
China rising and U.S. dominance waning — especially in Deep Tech — as seen on unicorn growth and early indicators like patent creation
- China is a primary growth driver in the global startup revolution. In 2014, only 14% of current unicorns were from China. In 2017 and 2018 so far, that number has grown to 35% — while for the U.S. it has gone down from 61% to 41%.
- China is rapidly increasing its knowledge production, as measured by patents, especially in AI and Blockchain. While the U.S. still has more startup activity in these sub-sectors, as measured by VC dollars, China has surpassed the US in patent applications — with 4 times as many AI-related patents and 3 times as many Blockchain and Crypto-related patents as of 2017.
Entering a New Era of Tech with Industry-Focused (Third Wave) and Deep Tech Startups
- We are entering a New Era of Tech, where more startups tackle specific verticals (i.e. Third Wave — think Uber for mobility or Airbnb for hospitality) or focus on Deep Tech (i.e. based on tangible and defensible innovation), for example in AI, Blockchain or Robotics.
- We see this clearly in the data for Sub-Sector growth. The fastest growing Sub-sectors all fit these categories, while declining sub-sectors are mostly associated with the first and second wave of tech startups.
Download the full report for a few pages of EdTech goodness, here is a primer and introduction on the EdTech front…
While education underpins economic, social and financial prosperity for every country in the world, it is arguably one of the last sectors to innovate through technology. At the same time, experts predict 1 billion additional students worldwide by 2050,1 driven by population growth (in emerging economies in particular), increased participation in education, longer time at school and an increased need for reskilling due to labor market shifts.
Global education expenditure is projected to grow at 8 percent annually to $8 trillion by 2020. Despite this sizable investment, current education models and incumbent systems are unlikely to be able to service the future global demand for education. In the 10 years to 2025 education technology expenditure is projected to grow at 17 percent per year to $250 billion.3
The growth rates we are likely to see as a result are incredible. Several themes underpin the EdTech sector and its growth. Technology, bandwidth and immersive devices are enabling much greater access to learning resources. There is a massive fragmentation of content around the world, much of which is very similar and aimed at the same learning outcomes. Internationalization of education and the workplace is concentrating curricula around globally trusted brands and certificates. There is a growing focus on “return on investment” and workforce training, exacerbated by labor skills shortages, the need for job preparation, re-skilling, and continued professional development. In emerging markets, credentials for employment and career progression have particular salience.
EdTech startup activity and funding stats are all from StartUp Genome’s global database and provide a fascinating comparative insight against the growing, maturing and declining sub-sectors profiled.