Education Industry Revenues Reach $105 B in 2000, but Venture Investments Continue to Decline in Q2 of 2001, According to New Reports from Eduventures

September 10, 2001

Eduventures has released its annual overview of education industry revenues, trends and drivers, Markets & Opportunities 2001: Education Industry Revenues Top the $100 Billion Mark. The report details past and present revenue performance in every sector of the industry and provides forecasts for growth through 2003.

“In 2000, overall industry revenues grew by 8 percent to reach nearly $105 billion,” said Peter Stokes, executive vice president at Eduventures and director of the firm’s research and advisory business.

The report’s author, Tom Evans, a director and senior analyst at Eduventures, noted that, “Among the most salient trends evident in the course of 2000 were market consolidation, evidenced most markedly in the publishing sectors; strong growth in the K-12 Schools sector; and an ever louder call for increased testing and assessment at all stages of the lifelong learning cycle.”

Eduventures has also released it’s latest quarterly report on industry investment activity, Education Quarterly Investment Report: Corporate E-Learning Results Exceed Expectations. The report examines the recent, dramatic rise in M&A transactions relative to the decline in total industry investments and details each of the industry’s second quarter investments.

According to the report, venture capital investment totaled just $247 million in Q2 of 2001 – a 21 percent decline over Q1. Overall, the $558 million in year-to-date total private investment in education represents a nearly 70 percent decrease from the first half of 2000’s record-setting $1.8 billion.

At the same time, a number of bellwether e-learning firms have demonstrated progress on getting to profitability – a sign of continued health for these markets.

Eduventures, Inc. is the leading, independent research firm dedicated exclusively to the coverage and service of learning markets. We help organizations thrive in the new education economy. Our research, advisory services and executive strategy conferences provide clients with a broad and deep knowledge of key industry metrics, emerging trends and breaking news. Founded in 1993, Eduventures is independently and privately held and is headquartered in Boston, Massachusetts. Visit us at for more information.