VC company educational capital recently announced that it has reached the first close of its second fund. The team has already raised $105 million (€100 million) and is now looking to reach $160 million (€150 million) to invest in edtech startups and companies working on the future of work.
I caught up with Marie-Christine Levetone of the two co-founders of the company with Litzie Maarekso she could tell me about Educapital’s investment thesis and goals with this second fund.
“We founded the company four years ago. We were the first European edtech fund. In four years we have invested in 20 companies, mainly in Europe. We have a broad investment spectrum, from early childhood to vocational training,” Marie-Christine Levet told me.
Some of the companies in the company’s first fund portfolio include: 360Learn† labster† preply† Live Mentor† Simundi and PowerZ†
So far, Educapital has generated two outputs (lalilo and AppScho), and many of the portfolio companies have attracted follow-up investments. Approximately 40% of the companies in Educapital’s portfolio are founded or co-founded by a woman.
“The Covid crisis has been a catalyst – history has accelerated. We saved 5 to 10 years’, says Levet.
With the second fund from Educapital, the team wanted to raise €100 million. But it was pretty easy because they achieved that goal with the fund’s first close. Educapital now aims to reach the fund ceiling of €150 million.
“We think a complete change has taken place. It is more difficult than ever to draw a line between work, school and vocational training,” Levet says.
Educapital wants to invest in another 20 companies. A typical Educapital round will cost between €3 million and €10 million, most likely in the Serie A stage. Three companies have already raised money from Educapital’s second fund: Opportunity† fourth Rev and Invivox†
When it comes to limited partners, many of Educapital’s existing backers decided to invest in the second fund. These investors include Hachette Livre, Bayard, Education for the Many, etc. New investors include Éditions Francis Lefebvre, the Jacobs Foundation, UMR, BNP Paribas Innovation, Arkea, Matmut, and others.
In my discussion, Marie-Christine Levet also insisted that Educapital is not a strict edtech fund – despite the name. The company now also wants to invest in future of work startups.
