Ambient reports that this sharp increase is attributed in part to an investor spike in consumer-facing learning tech companies. In fact, investments in this market more than tripled in 2015—to an astonishing $3.1 billion. "In essence, these suppliers are engaging in retail education, a fundamental change in the global education ecosystem," explains Sam Adkins, chief researcher for Ambient Insight.
A total of 312 consumer-facing learning technology suppliers were funded, accounting for 47 percent of all ed tech investments made across the globe in 2015. This is significantly higher than the 122 investments made to consumer-facing learning technology suppliers in 2014. "Clearly, investors are now focusing heavily on consumer-facing learning technology suppliers," says Adkins.
Another market that surged in 2015 was what Ambient terms next-generation "cognitive learning" companies, which focus on behavior-modification solutions. Investments in this area rose to $483.5 million in 2015, up from a mere $24 million in 2014. Additionally, in 2015 there were 52 cognitive learning companies funded, whereas there were just eight companies funded in 2014 and three funded in 2013.
For instance, a behavior modification company called Omada Health obtained $48 million in funding in September 2015. It offers a range of methods to help corporate employees reduce the rates of preventable diseases, such as a 16-week learning experience that includes online courses, online coaching, and game-based learning. Another cognitive learning company called Headspace garnered $34 million in investment in 2015. Headspace is a digital health platform that provides guided meditation sessions and mindfulness training.
"Cognitive learning companies have had a bumpy ride attracting private investment. On the surface, that appears to have changed dramatically in 2015," says Adkins.
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