100 million euros for the future of education and work

Educapital, the first European fund dedicated to education technology (Edtech), announces the first closing of Educapital 2 at €100 million and is targeting €150 million for its final close.

THE SOLUTION TO THE EDUCATION MARKET’S CHALLENGES

Marie-Christine Levet and Litzie Maarek created Educapital in 2017, with the firm belief that innovation would play a crucial role in the digital revolution of the education and training sectors. Teacher shortages, declines in PISA rankings, inequalities within educational systems, mismatches of training with the needs of the working world: only a disruption of methods, uses and pedagogical tools, will allow us to answer these major challenges.

After the success of Educapital 1, the founders reaffirm their position as key investors in Edtech and the Future of Work, with the ambition to find and nurture European leaders within the sector. With this second fund 2, Educapital becomes the largest European Edtech fund.

AN ACCELERATION OF HISTORY

The 2020 pandemic forced the whole world to try Edtech and turned the working world upside down. It accelerated adoption by 5 to 10 years, acting as a catalyst for the sector, and caused an eruption of investment in the sector. Edtech reached a record $20 billion globally in 2021, while Europe tripled its efforts in one year to $3 billion.

“Innovation enables education to be accessible to the widest audience, to be personalized and relevant lifelong, and to meet the needs of the younger generation and the world of work. We are only at the beginning of this revolution in education: the market is estimated to be worth $500 billion by 2025. More than ever, our thesis of investing in Edtech and the Future of Work makes sense. Human rights and fundamental freedoms are only possible in a well-educated society. Faced with the onslaught of GAFAM companies in our classrooms, investing in innovative education is a matter of democracy and sovereignty,” says Marie-Christine Levet.

SIGNIFICANT RESULTS

In 4 years, Educapital has established its brand and invested in 22 young European companies that are reinventing the way we learn, train and work. Educapital's portfolio shows strong results, with two exits and many follow-on investments, including 360 Learning (leading platform for professional training), Labster (virtual laboratories for science learning), Preply (marketplace for online language learning), and LiveMentor (online entrepreneurship school). In total, Educapital portfolio companies have raised more than €500 million.

Educapital's strength is to combine financial performance and social impact. This is why the company has become the first impact fund in its sector and has developed its own methodology to measure the social impact of its investments. Educapital also acts to promote diversity: 40% of its portfolio companies have been (co-)founded by women, compared to the <10% market average.

PRESTIGIOUS INVESTORS

Educapital 2 brings together prestigious investors who have chosen to reaffirm their confidence in the team: Bpifrance, which is investing in equity, the French government via the Edtech Fund of Funds managed by Bpifrance as part of France 2030, Hachette Livre, Education for the Many, Bayard and private investors, joined by new supporters such as Les Editions Francis Lefebvre, the Jacobs Foundation, UMR, BNP Paribas Innovation, Arkea, Matmut Revital Emploi and others, all of whom are convinced by the need to invest in the renewal of education and training.

“As a founding member of Educapital, Hachette Livre is pleased to participate in this second fund to support the rapid growth of the Edtech ecosystem in Europe. This participation reflects the central place that Hachette Livre devotes to innovation, to better anticipate and take advantage of all the opportunities offered by digital technology in the field of education,” said Fabrice Bakhouche, Chief Operating Officer of Hachette Livre.

“Bpifrance, which is contributing its own funds and as part of France 2030, is pleased to renew its confidence in Educapital, whose mission is perfectly aligned with our strategy of supporting the players who are shaping the schools and training of tomorrow. Since its creation, Educapital has been able to position itself as a pioneer in all segments of EdTech and today plays a key role in this ecosystem by contributing to the emergence of future French leaders in education,” adds Nicolas Dufourcq, CEO of Bpifrance.

“After supporting Educapital, we are pleased to confirm our commitment to Educapital 2. As demonstrated with its first closing in 2017, the Educapital fund is a key player in Edtech that will strongly contribute to achieving this ambition to serve everyone. This second fund will allow us to consider the latest societal developments and expectations that have accelerated in recent years,” said Bruno Bonnell, Secretary General for Investment, France2030.

ABOUT EDUCAPITAL

Founded in 2017 by internet pioneer Marie-Christine Levet and investment professional Litzie Maarek, Educapital is the first European impact fund dedicated to Edtech and the Future of Work. Educapital invests from late seed to series B in companies that innovate in the education sector, from early childhood to vocational training and the future of work.

Educapital's ambition is to help European Edtech champions emerge by providing financial support, expertise, and know-how. Educapital is an impact fund (Article 9) and has developed its own methodology to measure the impact of its companies.

Educapital has invested in 22 innovative European companies, including Lunii, 360 Learning, Labster, Makers Academy, Preply, Chance, Fourthrev.

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