GSV 150 — The Most Transformational Growth Companies in Digital Learning and Workforce Skills
by Alex Argo
In 2022, we witnessed significant change, including historic learning loss among students, record-high inflation and interest rate hikes, and the release of ChatGPT. It is hard to believe that it has only been one year since the last GSV 150 list was released. As we look toward the future, this rapidly changing landscape represents what we at GSV call a “Brave New World,” and you can’t use old maps to navigate a new world. At a time of both tremendous challenge and unprecedented innovation, digital learning and workforce skills companies have a unique opportunity to chart new maps that allow ALL people to have access to the future.
With that in mind, we are thrilled to announce the 2023 GSV 150, a list of the most transformational growth companies in digital learning and workforce skills that are shaping the future of education. To arrive at this year’s GSV 150, we evaluated over 4,000 VC and PE-backed private companies across several factors — revenue scale, revenue growth, user reach, geographic diversification, and margin profile. Many of the companies in this year’s GSV 150 are familiar names; these companies are constantly evolving and innovating to meet the needs of students, educators, and professionals around the world. This impressive group has achieved impact at scale, collectively reaching an estimated 3 billion people and generating roughly $25 billion in revenue annually. Additionally, we estimate this year’s list includes 27 companies generating over $250 million in annual revenue, an increase from the 20 companies reported last year.
Across Pre-K to Gray, these 150 companies are utilizing cutting-edge technology to address a wide range of pain points. Most notably, companies are increasingly leveraging artificial intelligence (AI) to scale personalized learning and skills training for individuals and enterprises. The explosion of large language models and generative AI has ushered in a new era of AI in education, and several GSV 150 companies, such as Learneo, Replit, Glean, Grammarly, Speak, and more, are using this technology to enhance learning globally. Additionally, the use of AR/VR technology to deliver an immersive learning and training experience is gaining momentum, with companies like OssoVR, STRIVR, and Mursion at the forefront of this innovation.
In this current environment of economic uncertainty, the needs of learners, educators, and companies for learning and skills training are continually evolving. The GSV 150 companies are agile, adapting their solutions to tackle these challenges head-on. For instance, companies such as BYJU’S and alura have embraced a hybrid model of learning delivery that allows learners to participate in both in-person and online instruction, balancing efficacy and flexibility. Today’s educators are facing a significant amount of pressure due to labor shortages and learning loss, contributing to the current teacher burnout crisis. Companies like Turnitin and Quizizz are finding ways to leverage technology to support teachers inside and outside of the classroom. Lastly, despite reported layoffs, a global talent shortage persists and companies are increasingly shifting toward skills-based, non-degree hiring. Several learning providers within the GSV 150, like Simplilearn, upGrad, Scaler and Springboard are partnering with institutions to provide reputable, high-quality alternatives to traditional, degree-based education to help reskill and upskill all learners.
In 2022, funding decreased across all industries, and EdTech was no exception. Venture capital investment in the sector has slowed from its peak levels during the pandemic in 2020 and 2021. However, excluding Chinese VC funding from the overall funding total, you can see that funding in 2022 has increased by 80% compared with 2020. Despite the slower pace of capital flowing into the sector, we still witnessed a few exceptional companies raise significant growth rounds, such as Physics Wallah, Multiverse, and Handshake. As we enter 2023, investor sentiment remains cautious, and we anticipate increased consolidation across the industry as companies with cash will be well-positioned to acquire targets unable to raise additional rounds at attractive valuations.
Source: HolonIQ
The GSV 150 originate from all over the world and several companies, like Emeritus and Photomath, successfully serve learners globally as exporters of education. North America — primarily the United States — is the most represented region, accounting for 60% of the GSV 150. India is also a significant contributor to the list, with 14% of the companies coming from South Asia, which continues to grow rapidly. Europe and Latin America account for 11% and 7% of the GSV 150, respectively. The remaining 8% of companies are dispersed throughout MENA, Africa, Asia, Australia, and New Zealand.
The GSV 150 is distributed across Pre-K to Gray, covering early childhood, K-12, higher education, adult consumer learning, and workforce learning. Of these companies, 33% focus specifically on lifelong learning (which includes adult consumer learning and workforce learning), 32% focus on early childhood and K-12 education, and 5% focus solely on higher education. More and more companies are extending their reach across the lifetime learning cycle, with 30% of the 150 expanding across multiple categories from Pre-K to Gray.
Learn more about the companies on the GSV 150 list and register for the ASU GSV Summit to meet these companies in-person.
Methodology
The GSV 150 consists of the leading and most transformational, private companies in the Digital Learning space. These are the top 150 companies with the largest and fastest-growing global learning impact. The key criteria for inclusion are:
· VC or PE-backed companies in Digital Learning and Workforce Skills, excluding public and nonprofit companies
· Companies that have achieved meaningful scale and primarily, but not exclusively, those that are post-Series A in their development
· Companies experiencing strong top-line growth
The selection is determined by our internally developed scoring system that applies scores across several KPIs:
· Revenue scale
· Revenue growth
· Active user reach
· Geographic diversification
· Margin profile
Note: As we might have missed companies that should be included in the GSV 150, we encourage readers to let us know if that is the case.