This presentation was prepared for a panel session "Winning the Asian Edtech Market" held at SXSWedu in March 2017.

1. Winning the
Asian Edtech
Market
Prepared for
Prepared by

2. 1.6
2.4
6.5
7.3
1.1
2
3.3
>2.0 E
0.8 0.9
1.5
1.0
2013 2014 2015 2016
Metaari
CB Insights
Edsurge
Edtech investment maintained its momentum in 2016
Private investment in edtch companies in 2016 maintained its momentum after seeing a
record high in the U.S. and the globe in 2015
Investment in edtech companies ($ Billion)

3. Continuing robust deal flow in the U.S. and China is catching up
58%
28%
14%
Companies in the rest of the world
2 0 1 6
i n v e s t m e n t
Chinese Companies
US Companies
$1.0B
$2.1B
$7.3 B $4.2B
Source: Metaari

4. Policies matter in accelerating edtech adoption in the K12
classroom
Photo: CCTV.com Photo: Huffington Post
18th Central Committee of the Communist Party of
China (CPC) in 2015
National People's Congress

5. Chinese online K12 education companies leveraging mobile
platforms received investor attention
<$1 billion VC investment in Chinese edtech companies in 2016
486
135 116
221
26 2
Online Blended Offline
475
128 135
1
131
87
30
K12 Corp / Lifelong PreK Higher Ed
Mode of delivery Segment
Source: Emerging Strategy Analysis and Dow Jones Venturesource
All subjects + Extra curricular training
ELL only

6. Supplementary learning companies received investor attention
Source: Emerging Strategy Analysis and Dow Jones Venturesource
77 deals
Supplementary learning companies and related service providers
Service providers primarily for formal, regular schools
Learning support for non-formal education vs. Learning support for formal schools
(total 86 deals in 2016)

7. Tablets and smartphones are the most popular gadgets
among Chinese students
Chinese students huddle during a recess in a Saturday supplementary school classroom
Photo:,Emerging Strategy

8. Large test prep segments across Asia offer low-hanging fruits
 Gaokao
 Outbound int’l students
 English fever
 Gamified learning for B2C test
prep apps
 Star teacher lecture capture
 Adaptive learning as value adds
 CSAT
 High per student spending
on supplementary schools
 Competitive college entrance
exams
 Live streaming tutoring
 Social media app
 Artificial intelligence
Drivers
Opportunities
DriversDrivers
Opportunities
IndiaChina South Korea
Opportunities

9. E-textbooks are increasingly common in the K12 classroom
K12 student-
computer ratio
by OECD
 Australia, UK,
US, Norway
(1.0~2.0)
 Singapore,
Canada
(2.0~3.0)
 Korea, Japan
(3.0~4.0)
Photo: Kyodo News
In Korea and Japan the governments promote classrooms with one-student-one-computer
Photo: Online Learning and Distance Education Resource

10. Edtech poised to accelerate due to improved access to ICT
and its potential for personalized learning
 A large dynamic private K12
school segment
 Greater access to ICT
India
 The govt’s initiatives to promote
digitization of K12 education
through competition & financial
support
China
 Blended learning
 Edtech to facilitate low-cost
private schools for scale up
 Classroom management system
with adaptive learning
 Virtual learning for STEM
education
 Rapidly increasing access to
ICT
 Tablet distribution began in
2016, narrowing the digital gap
between urban and rural schools
Indonesia
 Social learning apps that
facilitate student-to-student
interaction and teacher-student-
parent communication
Drivers
Opportunities
DriversDrivers
OpportunitiesOpportunities

11. Necessity of human interaction in English language learning
results in human-centered business models
 Rising wealth and strong
demand for ELL in preparation
for study abroad programs
China
 Rapidly evolving ELL space
attracting new companies and
driving new business models
while edtech in other segments
is catching up
Japan
 Webcam-based face-to-face ELL
 Experiment on AI for ELL may
gain traction
Drivers
Opportunities
Drivers
Opportunities
 Gamification ELL combined with
human interaction
 Blended learning that creates
communities for the learners of
English language and computer
programming

12. c
Education industry in Asia is facing disruption
Technology and rising incomes in emerging markets are the twin drivers of education industry
expansion and edtech innovations
Classroom management system
Social
Learning
Gamification
Language
Learning
Virtual learning
Mobile
Learning
Adaptive
Learning
Test Prep
STEM