COVID-19 has been an unexpected boon for one industry: online education. What was a fiercely-competitive, cash-burning market segment is now one of the business winners from the health crisis.
Shares of China’s education companies such as TAL Education Group and New Oriental Education and Technology Group have surged as the virus spread.
According to consulting firm Frost & Sullivan, the market share for online education in China’s 463 billion yuan ($66 billion) after-school tutoring business was just 6.5% in 2018. That figure could jump to 35.7% by 2023.
This also means good fortune for Shanghai-based VC and PE firm Envolve Group which focuses on edtech and China’s massive education sector.
However, Envolve Group has warned that the virus’ impact could lead to an over-saturation in the market, as companies from start-ups to China’s tech giants like Alibaba and Tencent are rapidly filling the void.
Shirley Yu and Martina Fuchs catch up with Co-founder Alex Jiapei Liu, and also get his take on the latest VC trends, Elon Musk and SpaceX.
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