However, judging from the current development situation, China's private education industry is still facing the problems of single financing channel and shortage of education funds. The research group of private education industry of Prospective Industry Research Institute analyzed the actual operation of venture capital at present, and found that its entry into private education industry has the following characteristics:
First of all, it mainly invests in vocational training and preschool education, and rarely dabbles in academic education. This is mainly because academic education is regulated by laws and regulations, and the supervision of education administrative departments is strict.
Secondly, the focus is on providing seed funds and growth funds. Venture capital pays little attention to those relatively mature and stagnant training enterprises, and pays more attention to finding some fast-growing small and medium-sized training institutions to provide start-up funds for their development.
Thirdly, investment and investment promotion are mainly carried out at the company level. Because the property right of school legal person is protected and preserved by law, and its change, increase or decrease procedures are quite complicated, so at present venture capital and investment mainly occur at the level of school organizer-education (training) company.
In addition, venture capitalists in the private education industry generally only invest in minority shares. Private equity investment funds generally only invest in minority shares in private education, often accounting for only10%-20% of the company's total share capital; However, similar international markets generally conduct holding transactions, hold majority shares, and even make wholly-owned acquisitions.
Judging from the investment trend of private education industry in the future, Forward-looking Industry Research Institute believes that in recent years, there have been four major development trends in private education investment, namely:
Multi-subject and multi-mode investment
It mainly includes: Toyota, Bosch Group and other Fortune 500 companies invest entities and build bases in many domestic vocational colleges; Venture capital and private equity investment, aiming at IPO listing and mergers and acquisitions, will focus on the most popular areas of extracurricular tutoring, online education and online education in primary and secondary schools in China; Private capital has increased its investment in basic education for the purpose of asset appreciation and preservation. For example, after the financial crisis, Tianma Education Group, a private education giant, was acquired, and now it is the largest group of basic education in East China. Manufacturing enterprises participate in vocational education by introducing enterprises into schools and enterprises into schools; In addition, overseas listed companies have also increased their investment in private education industrial clusters in China.
Education market segmentation has become a hot spot for investment.
Among them, under the background that the gross enrollment rate of higher education will reach 40% in 2020, the transfer of equity and property rights of private colleges and universities will be a hot investment spot; At the same time, the overseas study training market continues to be hot, and the English (forum) training market has always maintained a scale of about 30 billion yuan. It is expected that primary and secondary school training will become one of the fastest growing areas in the future.
National education giants began to appear.
Under the background that all kinds of investors, mainly venture capital and private equity investment, enter China's private education industry, the number of educational enterprise chains is increasing, the brand of educational enterprise chains is increasing, the industry awareness is growing, the industry is gradually maturing, and cross-regional educational industry giants begin to appear. For example, New Oriental, Universal IELTS, Baby Friendly, Baby Friendly, Red, Yellow and Blue.
Industry accelerates mergers and acquisitions
The merger and acquisition forms of private education industry mainly include tongzhi merger and industrial chain merger. Among them, Tongzhi M&A refers to the educational institutions that have a certain market share and popularity in the regional market, and acquire the same type of educational institutions horizontally to achieve rapid expansion and rapid listing; M&A in industrial chain is to improve the educational industrial chain and integrate resources horizontally and vertically. For example, after the listing of New Oriental, it quickly entered the college entrance examination re-reading market, online education market and academic education market through acquisition.
The coverage of private education is wider, and the coverage of private colleges and universities is narrower. I hope my answer can help you.