In addition to attracting capital inflows from the capital market, education has also attracted the attention of some venture capitalists. VipKid, an Internet education company, recently completed the D round of financing, with a scale of US$ 200 million, which was led by Sequoia Capital. The investors included Yunfeng Fund, Jingwei Venture Capital, Zhenge Fund and Tencent Strategic Investment.
The new version of the people's promotion law reduces obstacles for capital operation. In the eyes of some institutions, the arrival of the new version of the People's Promotion Law has made the education sector attractive.
At the end of August, the State Administration for Industry and Commerce and the Ministry of Education jointly issued the Notice on the Administration of Name Registration of For-profit Private Schools (hereinafter referred to as the "New Promotion Law").
According to TF Securities's analysis, the key point is that the for-profit control of schools and training institutions that are not involved in compulsory education will be liberalized, and the capital will flow in and out more smoothly. In addition, this once again emphasizes the attractiveness of the education sector. Mainly includes:
The two-child policy and consumption upgrading have improved the social attention to education, promoted the growth of family education expenditure, and gained new growth opportunities in many educational segments.
Under the new law, the financing channels of educational projects are smooth, the entry of capital promotes the concentration of the industry, and the influx of talents drives the development of the industry.
Education companies are basically ahead, with abundant cash flow and less controllable risks.