E-Learning in Europe

IBIS Capital | e-Learning
A European
Perspective on eLearning
IBIS Capital | A European Perspective on e-Learning
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Glossary
Adult education: Self-learning and personal development
Capital expenditure: Expenditure on assets that last longer than a year, including construction, renovation or major repairs to buildings as well to equipment, furniture and computers
Current expenditure: Current expenditure covers goods and services bought and used during the year
Corporate training: Professional training and learning and development programmes for firms
EM: Emerging markets
Higher Education (HE): Formal education post 18 years of age
Instructor-Led Training (ILT): Usually refers to traditional classroom training, in which an instructor teaches a class of students. The term is used synonymously with on-site training and
classroom training
ISCED 0: Pre-primary education: Pre-primary education is defined as the initial stage of organised instruction. It is school- or centre based and is designed for children aged at least 3 years
ISCED 1: Primary education: This level begins between 5 and 7 years of age, is compulsory in all countries and generally lasts from four to six years
ISCED 2: Lower secondary education: It continues the basic programmes of the primary level, although teaching is typically more subject focused. Usually, the end of this level coincides with the
end of compulsory education
ISCED 3: Upper secondary education: This level generally begins at the end of compulsory education. The entrance age is typically 15 or 16 years. Entrance qualifications (end of compulsory
education) and other minimum entry requirements are usually needed. Instruction is often more subject-oriented than at ISCED level 2. The typical duration of ISCED level 3 varies from two to five
years
ISCED 4: Post-secondary non-tertiary education: These programmes straddle the boundary between upper secondary and tertiary education. They serve to broaden the knowledge of ISCED
level 3 graduates. Typical examples are programmes designed to prepare pupils for studies at level 5 or programmes designed to prepare pupils for direct labour market entry
ISCED 5: Tertiary education (first stage): Entry to these programmes normally requires the successful completion of ISCED level 3 or 4. This level includes tertiary programmes with academic
orientation (type A) which are largely theoretically based and tertiary programmes with occupation orientation (type B) which are typically shorter than type A programmes and geared for entry into
the labour market
ISCED 6: Tertiary education (second stage): This level is reserved for tertiary studies that lead to an advanced research qualification (Ph.D. or doctorate)
K-12: Formal education period up to 18 years of age
Learning Management System (LMS): Software that automates the administration of learning/course delivery events. The LMS registers users, tracks courses in a catalogue, records data from
learners and provides management reports. An LMS is typically designed to handle courses by multiple publishers and providers. It usually does not include its own authoring capabilities, instead, it
focuses on managing courses created by a variety of other sources
m-Education: Any form of e-Learning delivered to a mobile device, e.g. via smartphones or tablets
Programme for International Student Assessment (PISA): International study that was launched by the OECD in 1997. It aims to evaluate education systems worldwide every three years by
assessing 15-year-olds' competencies in the key subjects: reading, mathematics and science
Rote Learning: A memorisation technique based on repetition
RoE: Rest of Europe
RoW: Rest of the world
Shareable Content Object Reference Model (SCORM): A set of standards and specifications for e-Learning training materials
Tin Can API: An e-learning software specification that allows learning content and learning systems to speak to each other in a manner that records and tracks all types of learning experiences
Talent Management System (TMS): An integrated software suite that manages performance management, learning and development and other talent capital related tasks
Virtual Learning Environment (VLE): A web-based education system that models traditional education in a virtual environment
Web-based Training (WBT): Any instructional event that can be accessed via the Internet or the Web
Table of Contents
5 20
The European e-Learning Market
21 27
Active European e-Learning Corporates
28 34
The European Education Market
35 38
The European Corporate Learning Market
39 44
General European Investment Trends
45 46
The European EdTech 20
47 57
Appendix
A Closer Look at the European Education Market
The European eLearning Market
The European e-Learning Overview
Significant Market Size
A Highly Fragmented Market
Limited Invested Capital to Date
Of the $4.1tn trillion spent on education and

training, approximately 25% is in Europe, making it
the 2nd largest market to North America. In the
schools market, Europe boasts 27% more teachers
than the US, with 4.6m teachers as compared to
3.6m in the US
The European e-Learning market is a highly

fragmented market comprising up to 3,000
predominantly small entrepreneurial companies.
The fragmentation represents in part the early stage
nature of the industry and the market difference
within Europe
Although the relative difference in the size of

markets between the US and Europe is not
significant yet there is a big difference in the volume
of venture deals in e-Learning. Since 2007, 60% of
global venture investments in e-Learning have been
in the US. Europe only accounts for 6% over the
same period
Split Between Corporate & Academic
European M&A still Nascent
IBIS Capitals View on Europe
The spend on academic education and learning

outweighs the spend on corporate training by about
18x. There is also a regional split between northern
and southern Europe where for example in the
Nordics workers are 4x more likely to be receiving
training than in southern Europe
The level of activity within e-Learning M&A in

Europe is currently limited, with very few deals over
$20m. The market remains in development. The
increase in venture investment is expected to fuel
expansion and in due course increase strategic
activity
The evidence of increased investment in Europe in

the sector and anecdotal support that companies are
experience an upsurge in activity points to a market
on the turn. We expect the e-Learning market to be
characterised over the next 3 years by a significant
increase in investment in the sector as well as a level
of consolidation as companies seek scale
Source: McKinsey, Eurostat, Capital IQ, OECD, Eurypedia, National Statistic Offices, Ministries of Education
The EdTech Hype Cycle

Years to Adoption
0-2 years
2-5 years
Expectations
5-10 years
>10 years
Adaptive Learning
BYOD Strategy
Digital Preservation of Research Data
Gamification
MOOC
Web-based Office Productivity Suites

Social Media in Education
Social Learning Platform for Education
Self-publishing
ePortfolios
Big Data
Open Source Portals
Mobile Learning
Personal Learning Networks

Learning Record Store
ITIL
E-textbooks
Tin Can Initiative
Cloud email for staff and faculty
Game Consoles as Media Hubs

Web-based tools for education
SaaS Administration Applications
Media Tablets
Virtual Environments
Learning Repositories
Lecture Capture and Retrieval Tools
Time
Technology
Trigger
Peak of Inflated
Expectations
Trough of
Disillusionment
Source: IBIS Capital, Gartner
Slope of
Enlightenment
Plateau of
Productivity
Global Education and Corporate Learning Expenditure

2011A Global Education Expenditure by Geography
Key Points
Pre-K-12
($bn)
K-12
Post-K-12
Vocational
1,500
1,266
Emerging
AsiaPacific
17%
Developed
AsiaPacific
14%
Europe
25%
966
1,000
668
500
Latin
America
8%
558
319
Middle
East &
Africa
3%
126
0
Middle
East &
Africa
Latin
Emerging Developed
America Asia-PacificAsia-Pacific
Europe
North
America
Similar to other regions, K-12

represents the largest segment
nominally within the European
education sector
North
America
33%
2011A Global Corporate Learning Expenditure by Geography

($bn)
71
75
50
74
25
14
2
Middle
East &
Africa
Latin
America
Emerging Developed
AsiaAsiaPacific
Pacific
Europe
North
America
From a global perspective, Europes

contribution is largest within the PreK-12 segment
Breakdown of 2011 Total Expenditure
Developed
AsiaPacific
19%
Europe
34%
Emerging
AsiaPacific
7%
40
In 2011, global education expenditure

was $3.9tn with global corporate
learning expenditure amounting to
$207bn
Latin
America
3% Middle
East &
Africa
1%
K-12
58.6%
Pre-K-12
6.6%
Corporate
5.0%
North
America
36%
Vocational
4.8%
Source: McKinsey
Note: K-12 is used as a synonym for formal education from kindergarten to 18 years of age
Post-K-12
25.0%
Growing Education Market Driven by Growth of e-Learning

Global Education Expenditure Forecast by Subsectors
Key Points
($bn)
10,000
For profit
6,334
8,000
Test preparation / tutoring market
5,482
6,000
Global language learning
Serious gaming
4,435
Child care
4,000
Global education expenditure market is

projected to grow at 7.4% until 2017
e-Learning expenditure projected to

grow at 23.0% p.a. to $256bn from
2012P-2017P which comprises:
Social learning / communities

Corporate & government learning
2,000
Post secondary
K-12 CAGR of 34.0%

Higher Education CAGR of 28.0%
Corporate market CAGR of 13.0%
K-12
0
2012P
2015P
2017P
e-Learning Expenditure Forecast by Subsectors

($bn)
300
256
Corporate education
Higher education
200
100
K-12
167
91
0
2012p
2015P
2017P
Source: IBIS Capital estimates, GSV education report, Ambient Insight research
Government Expenditure is Vital to Education

Education Expenditures as a % of GDP (2000 vs. 2008)
Key Points
2008
2000
10%
Targeted government spending is an

important stimulus for enhancing the
skills within the labour force. In turn,
investment in skills needed to drive
economic prosperity
8%
6%
4%
2%
Brazil
Slovak Republic
Hungary
Czech Republic
Italy
Ireland
Spain
Germany
Japan
United Kingdom
Australia
Mexico
Netherlands
Austria
Portugal
Poland
Finland
Switzerland
Canada
Belgium
Korea
Sweden
France
Chile
Denmark
Norway
United States
Israel
Iceland
OECD Average
0%
State of the labour market impacts

demand for vocational training:
changes to the economic base result
in changes to the skills requirement
unemployed seek to re-train in order
to return to the labour market
Proportions of Educational Expenditure from Public and Private Sources (ISCED 0-6)
Public funding
13%
13%
8%
15%
5%
6%
n/a
20%
14%
6%
40%
13%
10%
9%
17%
10%
10%
n/a
n/a
5%
16%
9%
13%
10%
0%
12%
18%
3%
3%
31%
9%
n/a
2%
10%
8%
0%
Private funding
0%
20%
40%
60%
80%
EU
BE
BG
CZ
DK
DE
EE
IE
EL
ES
FR
IT
CY
LV
LT
LU
HU
MT
NL
AT
PL
PT
RO
SI
SK
FI
SE
UK
IS
LI
NO
CH
HR
TR
100%
Source: Eurostat, UOE, World bank
10
Investment Trends: Academic and Corporate e-Learning

Increased Focus on the Academic Market
Direct Investments in the Academic e-Learning Market
Key Points
(1)
48%
2008-2012 Est.
CAGR (%) (1)
($m)
750
600
Direct investments in the academic eLearning market have recovered from the
lows of 2002 to 2004
Since 2004, there has been a significant
increase in funding within the academic
e-Learning market
450
300
150
0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Direct Investments in the Corporate e-Learning Market
2009
2010
2011
2012
Investment trends in corporate eLearning are correlate to the general

economic environment, most likely as a
consequence of the fluctuations of
corporate spend on training during the
economic cycle
(1)
Since 1999, direct investments in the

corporate e-Learning market hit an alltime low of $45m in 2010
($m)
750
600
450
300
(29%)
150
0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Source: Ambient Insight

(1)
Estimated based on Ambient Insights report titled The 2012 Boom in Learning Technology Investment . The scope
of the data includes angel, venture capital, and private equity investments
11
The Rise of Consumer-Facing e-Learning

Direct Investments By Type of Target Customer
(1)
Key Points
Deal Volume
Deal Value
(Volume)
($m)
80
2010
2011
2012
60
2010
600
2011
Investment in consumer-facing eLearning companies has increased

nearly threefold year-on-year
2012
450
40
300
20
0
750
Major themes in 2012:
By contrast investment in corporatefacing e-Learning companies fell
150
(2)
Direct Investments in Consumer-Facing

e-Learning Companies (1)
(2)
Direct Investments by Emerging Product

Type (1)
($m)
($m)
750
300
600
250
77%
19%
Mobile-based e-Learning continues to

receive
2010-12
CAGR (%)
200
450
224%
Social learning has attracted significant

interest from the investment
community with an annual growth rate
in new investment over the last 3 years
of 224%
150
300
100
50
0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
150
Cognitive
Learning
Social Learning Mobile Learning

2010
2011
2012
Source: Ambient Insight

(1)
Estimated based on Ambient Insights report titled The 2012 Boom in Learning Technology Investment . The scope
of the data includes angel, venture capital, and private equity investments
(2)
Refers to higher education
12
Significant m-Education Growth and App Downloads

m-Education Market by Region(1)
Key Points
($bn)
40.0
37.8
28.3
30.0
Developied Asia-Pacific: 23%
16.2
10.0
3.4
4.4
5.6
7.3
9.5
North America: 31%

Europe: 29%
21.4
20.0
2011-2020 CAGR
12.4
Emerging Asia-Pacific: 54%

Latin America: 54%
Middle East & Africa: 50%
0.0
2011A 2012P 2013P 2014P 2015P 2016P 2017P 2018P 2019P 2020P
Free Education App Downloads(2)

2009-2011 CAGR (%)
News
Travel
Education
Healthcare & Fitness
Lifestyle
Social Networking
Books & Reference
Music
Business
Sports
Entertainment
Games
Overall average
Paid For Education App Downloads(2)

2009-2011 CAGR (%)
342
270
239
234
232
223
226
226
193
177
175
145
188
Business
Healthcare & Fitness
Music
Social Networking
Books & Reference
News
Entertainment
Education
Sports
Lifestyle
Games
Travel
Overall average
221
213
212
206
201
The investment in m-Education is

estimated to have grown annually by
approximately 19% for the last 3 years,
according to Ambient Insight
The Serious Gaming & Gamification
sector is forecasted to grow from
$2.0bn in 2012 to $7.4bn in 2015
Games and simulation based tools are
expected to grow at a 37% CAGR to
2020
Education app downloads are greater
than the overall average in both free
and paid for downloads
175
185
180
174
171
156
136
178
Source: McKinsey, Research reports

(1)
m-Education includes all internet connected devices, such as smartphones or tablets
(2)
List of categories not exhaustive
13
Global e-Learning Fundraising Summary

Direct Investment and Deal Volume Since 2007(1)
($m)
2,500
Key Points
6
10
2,024
Total Capital Raised

(Global)
2,000
1,500
1,436
Total Capital Raised

(Europe)
1,192
928
1,000
1,063
Volume
(Europe)(3)
857
Since 2007, Europe accounted for 6.0% of

global deal volume
430
500
107
30
31
23
21
42
45
0
2007
2008
2009
2010
India
China
Europe
RoW
2011
Canada
2012
2013 YTD
Global Education Fundraising Volume

by Sector Since 2012
4.9%
4.6%
2.9%
2.0%
6.0%
8.4%
11.3%
59.8%
Global Education Fundraising Volume

by Geography Since 2007
US
The US is the most active global fundraising

market for e-Learning, accounting for 59.7%
of total deals, with high-growth markets,
India and China, trailing with 11.3% and
8.4% respectively(2)
Australia
With Europe accounting for 6.0% of global

e-Learning fundraising since 2007 and the
UK accounting for 2.0%
Management
Systems
17%
UK
Distribution
74%
Content
9%
As consumer-faced e-Learning companies

are on the rise, the distribution sector has
been attracting an increasing volume of
capital
The two largest fundraisings in 2013 were
lynda.com (Accel, MeriTech, Spectrum
investing $103m) and Open English
(Insight, Redpoint, TCV investing $65m)
The lynda.com investment was the first
major round for the company since being
founded in 1995
The investment represents the largest
single US venture financing round on
record for an online education company
Open English previously raised a $43m
round in May 2012 from Flybridge,
Insight, Kaszek and Redpoint bringing its
total capital raised to $120m
Source: Capital IQ as at 9 Jun 2013

(1)
Refers to global equity investments where transaction values are disclosed and are above $1m
(2)
Refers to transactions since 2007
(3)
Refers to transactions where the target was headquartered in Europe
14
US M&A and Investment More Active than Europe

e-Learnings Most Active Corporate Acquirers & Investors
By Number of Acquisitions and Investments (2010-2013)(1)
Company
Headquarters
Key Points
Acquirer / Investor
(Public / Private)
# of
Acquisitions
# of Investments
Total
Public
12
15
Private
Private
Public
Public
Private
Private
Public
Public
Public
Top Global e-Learning Fundraisings in 2012 (US vs. Europe)

(2)
$43m
$6.5m
$32m
$5.1m
$31m
$5.0m
$26m
$5.0m
$25m
$4.6m
Pearson has been the most acquisitive eLearning buyer with recent acquisitions of
Learning Catalytics, Exam Design,
IndiaCan Education and TutorVista
Private equity-backed Blackboard
(Providence Equity) has been the most
acquisitive private company in the sector.
The most recent acquisition (Mar 2012)
were Moodlerooms and Netspot, two
providers of open source online learning
technology
Macmillan is primarily active through its
two digital venture arms - Macmillan New
Ventures and Macmillan Digital
Education
The size of investments in US companies
for the top 5 deals in 2012 were on average
8x larger than those in Europe, despite
Europe being a larger market
Source: CB Insights as at 16 May 2013

(1)
Refers to acquisitions and equity investments in private e-Learning companies. The list excludes financial investors
(2)
Based in Florida despite headquarters in Panama
15
Recent e-Learning Fundraising Across Europe & the US

Europe
Date of
Last
Round
Capital
Raised ($m)
Jun-13
Total Capital
Raised To Date
($m)
Investors
Company Overview
Year
Founded
35.0
Bill Gates, Benchmark Capital, Dragoneer

Investment Group, Tenaya Capital, The
Founders Fund, Thrive Capital
Offers a social, crowdsourced platform designed for

researchers
2008
35.0
Mar-13
10.0
IBB Beteiligungsgesellschaft, Kizoo

Technology Capital, Nokia Growth
Partners, Reed Elsevier Ventures, VC
Fonds Technologie Berlin
Creates online and mobile-based language learning

courses
2007
10.8
Dec-12
5.0
Beringea
Provides open source and agile training programmes and

events for software professionals
2003
5.0
Nov-12
5.1
Undisclosed
Online community that teaches people languages through

crowdsourcing
2010
6.3
Oct-12
4.6
PROfounders Capital
Free online community for learning languages
2008
9.4
Investors
Company Overview
Year
Founded
Target
Domicile
United States
Date of
Last
Round
Capital
Raised ($m)
Jun-13
30.0
Bessemer Venture Partners, EPIC

Ventures, OpenView Venture Partners,
TomorrowVentures
Best known for its Canvas learning management platform,

which was launched in 2011 and now counts over 6 million 2008
users in over 425 K-12 and HE(1) institutions
50.0
May-13
2.0
Capricorn Investment Group, Expansion

VC, Learn Capital
Learning marketplace that lets students connect with

experts in one-on-one video chats
2012
2.5
May-13
6.5
Mainsail Partners
Cloud-based talent management software specifically

developed for K-12 educational organisations
2001
6.5
May-13
4.0
American Public Education

(NasdaqGS:APEI)
Accredited military transition college
2011
6.5
May-13
7.5
Redpoint Ventures, Bill Campbell (Former Marketplace that aims to help students and teachers
Chairman of Apple), Jesse Rogers
connect around a range of subjects
2011
7.5
Target
Source: Capital IQ, TechCrunch, press releases, as at 9 Jun 2013

(1)
Refers to higher education
Domicile
Total Capital
Raised To Date
($m)
16
Global e-Learning M&A Activity

Total Deal Value and Volume of Global and European e-Learning M&A Transactions
Since 2007 and above $20m(1)
($m)
(2)
40%
NR
17%
20%
(2)
24%
NR
33%
14,000
12,000
25
11,482
10,000
17
15
8,000
6,000
1,841
0
2007
1,015
1
2008
3,026
546
6
287
389
2010
2011
Strategic Acquirer %
of Global Volume
Fragmented market has meant a range of

smaller acquisitions from private equity
backed companies:
100%
(2)
NR
248 130
PlaySay / Babbel
lynda.com / video2brain
Desire2learn / Wiggio + Degree Compass
Echo360 / ThinkBinder + LectureTools
67%
17%
2012
2013 YTD
Eur Deal Value ($m)

Europe % of
Global Volume
Volume (Global)
50%
40%
Limited European M&A opportunities

above $20m
0
2009
Global e-Learning Deal Value ($m)
% of Total Deal
Value:
North America
Europe
15
North America continues to dominate

activity by value and number of deals above
$20m
10
290
% of Total Volume:
North America
Europe
8,039
10
4,000
2,000
20
20
9,955
Key Points
67%
20%
47%
24%
95%
(2)
NR
Global e-Learning M&A Volume by

Sector Since 2007
17%
33%
83%
16%
100%(2)
NR
32%
54%
78%
10%
87%
4%
99%
(2)
NR
16%
52%
40%
100%
83%
47%
71%
70%
83%
Management
Systems
36%
Distribution
49%
Source: Press releases, SEC filings, Capital IQ as at 9 Jun 2013

(1)
European data refers to M&A transactions whereby the targets headquarters were in Europe
(2)
Refers to not relevant as there is no data
Content
15%
17
2013: Select Global M&A Transactions

3 of the 21 Private M&A Transactions in 2013 Involved European Targets(1)
Offer
Date
Target
Acquirer
Target /
Buyer HQ
Company Overview
Target
Metrics
Deal Rationale
Transaction
Value ($m)
Apr-13
ThinkBinder
Echo360
US / US
Social collaboration tool that enables peer-topeer functionality within centralized online
study groups
"Tens of thousands of users"
Adds online collaboration tools to its distance learning

platform
Undisclosed
Apr-13
Tribal Nova
Houghton
Mifflin
Harcourt
Canada / US
Develops and publishes educational programs,

games and apps for pre-K audiences
NA
Increases adaptive digital content for the pre-K market
Undisclosed
Apr-13
Mendeley
Reed Elsevier
UK /
Netherlands
Cloud-based research management and social

collaboration platform
2.3m users
Over 340m documents
206k research groups
Expands researcher workflow offerings and builds

greater engagement with its users
Allows for content to be collaborative and open
c. $69-100m
Apr-13
Livemocha
Rosetta Stone
US / US
Online service for language-learning

communities
Over 16m members from c.

196 countries
Allows Rosetta Stone to offer its language packages

online via Livemochas cloud platform
c. $8.5m
Mar-13
PlaySay
Babbel
US / Germany
Develops language learning mobile software

products and applications
Entry into US market

100k users within a month of
Applies PlaySays learnings around gameplay to
launching its iOS-based
Babbel's wider portfolio of services
service in May 2012
Strengthens mobile-based offering
Mar-13
Lore
Noodle
Education
US / US
Socially integrated LMS focused on higher

education
Used by professors on more

than 600 campuses
Technology acquisition
Used to build another business model around Noodle
Launch
Undisclosed
Mar-13
Wiggio
Desire2Learn
US / Canada
Online free toolkit that enables users to work in 1.1m users

100k collaboration groups
groups
Expand presence in US higher education market

Opens up office in Boston, a large hub for e-Learning
Undisclosed
Mar-13
Root-1
Edmodo
US / US
Developed OpenMinds, a free platform that

allows teachers to instantly customize
education apps
5 apps
"acqui-hire" plus adds 5 apps

Supports Edmodos goal of being a distribution
channel for classroom content
Undisclosed
Feb-13
TutorVista
Pearson
India / UK
Online tutoring and test preparation provider
35 schools with intention to

grow to 100 within a year
Allows entry into fast-growing Indian education sector

Supports Pearson's inorganic expansion plan within
India
$25.7m
Feb-13
video2brain
lynda.com
Austria / US
Online video training company offering courses 1,700 video courses

400k subscribers
in English, German, French and Spanish
Adds multi-lingual educational content

Putting cash to work post $103m fundraising
Undisclosed
Jan-13
Degree
Compass
Desire2Learn
US / Canada
Course recommendation engine that helps

students complete their degrees on time
Used by 3 universities
Broadens suite of learning, e-portfolio and analytics

tools
Growing demand for data-driven tools
Undisclosed
Jan-13
Area9
McGraw-Hill
Education
Provides software technologies that help

Denmark / US content providers to develop personalized
educational and training solutions
LearnSmart: Over 300 titles,

1.5m students and has
delivered over 1bn questions
to students
Strengthens McGraw-Hill Education's leadership in

adaptive learning
Technology behind McGraw-Hills LearnSmart and
SmartBook series
Undisclosed
Jan-13
Tutor.com
IAC
US / US
c. 3k tutors
c. 8.8 million online
tutoring sessions to-date
Large untapped growth potential
c. $40m (3)
Online tutoring and homework help services
Source: EdSurge, Capital IQ, TechCrunch, press releases as at 9 Jun 2013

(1)
The highlighted deals above are select examples of the 21 private M&A transactions taking place in 2013
(2)
According to TechCrunch
(3)
According to The Next Web
(2)
(2)
Undisclosed
18
Venture Capital Funding: Europe vs. US
Total Venture Capital Deal Value By Year

27.2
($bn)
38.1
40
Difference
between
US & Eur.
VC
Funding
($bn)
11.6
9.1
Europe
9.6
20.9
10.9
9.3
10
22.4
18.6
9.5
7.2
4.9
22.3
20.5
30.8
30.5
14.0
18.3
23.3
22.4
US
30
20
Key Points
12.8
28.4
26.6
22.9 21.7
19.7
26.5
23.3
15.8
8.5
10.1
5.7
5.0
5.1
4.1
2012
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Europe (yoy
growth%)
-40%
-15%
2%
35%
24%
37%
-61%
19%
-43%
-13%
3%
-20%
US (yoy growth%)
-62%
-45%
-11%
20%
3%
16%
16%
-1%
-35%
18%
22%
-7%
Breakdown of Venture Capital Deal Volume by Investment Stage (1980-2011)

By % of Total Volume
60%
50%
Europe
40%
39%
33%
25%
30%
20%
56%
US
15% 17%
10%
1%
3%
3%
4%
0%
Startup
Product Production in Generating

Development Beta Test
Revenue
0% 0.2%
Profitable
Restart
0%
4%
Early stage investments are more

common in the US, whereas European
VCs invest more in revenue generating
and profitable businesses
Revenue generating and profitable
businesses represent 59% of all firsttime investments in Europe and 43%
in the US (1)
The amounts invested in venture
capital and the associated valuations
are higher in the US than in Europe
Across all stages, average amount
invested in the US is $5.7m and
$3.1m in Europe (1)
Across all stages, average postmoney valuation in the US is $18m
and $11m in Europe (1)
NA
Avg. 1st VC Investment

Size ($m) (2)
2.4/2.8
3.3/6.2
3.1/4.3
3.1/6.5
4.0/10.1
1.4/3.8
NA/3.3
Avg. Valuation @ 1st VC

Investment ($m) (2)
7.1/7.8
9.1/15.3
10.0/13.3
12.1/23.2
26.9/36.7
5.4/6.9
NA/12.8
The venture market in the US is

significantly larger than in Europe;
$26.5bn in the US in 2012 compared to
$4.1bn in Europe
Source: BVCA European Venture Capital: Myths and Facts

(1)
Refers to deals between 1980-2011
(2)
In 2005 equivalent USD
19
European e-Learning: Identifying the Key Trends
Proof: Precedent Fundraisings & Acquisitions (1)
Trend
Tower of Babel
ELT and Language Training
Online Tutoring
m-Learning &
Serious Gaming
Social Collaboration
+
Content
Management
Target
Buyer / Investor (2)
Overview (Target)
Babbel
Reed Elsevier
Online learning system for foreign languages
LinguaLeo
Runa Capital
Cloud-based language tutorial service with focus on

teaching English to Russian speakers
Busuu
ProFounders
Language learning community
tolingo
Acton Capital
Online translation platform
Memrise
Undisclosed
Supplemental flashcard game for language learning
SofaTutor
Acton Capital
Online tutoring platform
Tutoria
Macmillan
Online solution for sourcing offline private tutoring and

accessing trusted pedagogic advice in Germany
Maths Doctor
Macmillan
Mathematics tuition service, offering home visits and

online instruction
HeyTutor
Macmillan
Online tutoring platform
Quipper
Benesse
MangaHigh
PROfounders,
Revolution Learning
Moshi
Monsters
Accel
MindShapes
Index, Richmond
Babbel
Reed Elsevier
Online learning system for foreign languages
Mendeley
Reed Elseiver
Cloud-based research management and social

ResearchGate
Benchmark, Tenaya,
Accel, Bill Gates
Leading social network for scientists
Through a Q&A format, helps people learn things in a

game-like feel
Provides middle and high school-level math education
using casual games
Online game where users can adopt their own pet
monster and go on adventures together
Develops a series of educational apps targeted at
children ages 2 -12
Select European
Companies
Other Geographies (3)
Livemocha / Rosetta Stone

EnglishUp / Macmillan
GlobalEnglish / Pearson
Open English / Insight VP
MindSnacks / Sequoia
PlaySay / Babbel
TutorVista / Pearson
tutor.com / IAC
Tutorspree / Sequoia
OnlineTutorSolutions.com
/ Credo
Fingerprint Digital / Corus

Entertainment, Reed
Elsevier Ventures
Duck Duck Moose /
Sequoia, LVP
Kidaptive / Menlo
Ventures
LocoMotive Labs /
NewSchools
Scoot & Doodle / Pearson

Grockit / Benchmark,
Discovery
Piazza / BVP
Sokikom / Undisclosed
Lore / Noodle
Source: Company websites, press releases, TechCrunch

(1)
Refers to historical fundraisings and acquisitions of targets headquartered in Europe
(2)
Where relevant it only includes select investors
(3)
Refers to transactions whereby the target is domiciled outside of Europe and only includes select investors
20
Active European
e-Learning
Corporates
e-Learning: Active European Corporates

Pearson
From 2002-2012, Pearson has spent

3.4bn on education acquisitions
Offer
Date
Target
Mar-13
Acquisition /
Investment
40%
34% 37%
29% 31%
2012 Revenue by Geography (%)
50%
Asia
RoW
6%
45%
Apr-13: Acquires Learning Catalytics

Mar-13: Invests in Scoot & Doodle
Mar-13: Pearson VUE acquires Exam
Design
Feb-13: Announces launch of EdTech

incubator, Pearson Catalyst
Jan-13: Announces plans to exit UK
vocational market
North America
06'
07'
08'
09'
10'
11'
Europe
12'
2012 Education Revenue
2012 Revenue by Segment (%)
by Segment (%)
8.4%
34.0%
NA Education
(1)
Int'l Education
4.6bn (2)
7%
Since 2007, Pearson has acquired 18

companies; 14 of them were acquired
after 2010 and all were digital-based / eLearning businesses
Apr-12: Buys-out Educomp's

shareholding in IndiaCan
(% Sales)
17%
North American Education is Pearsons

largest business, with 2012 revenue of
2.7bn and operating profit of 536m
Digital & Services Revenue
59%
Operates through 3 business segments:

Education, FT Group and Penguin
May-13: Camfed and Pearson launch

partnership for girls' education
76%
Headquartered in London (UK),

founded in 1894 and employs c. 32,300
personnel
Financial Summary
13%
Relevant News
22%
Company Snapshot
Professional
57.6%
Education
Penguin
FT Group
Target
HQ
Founded
Company Overview
Sector
Deal Rationale
Transaction
Value ($m)
Scoot & Doodle Investment
US
2012
Operates a real time and social creativity platform
Social Collaboration
Supports Pearsons focus on social collaboration

within the education market
$2.5m
Apr-13
Learning
Catalytics
Acquisition
US
2011
Cloud-based learning analytics and assessment system
Student Response System

(Analytics & Assessment)
Supports flipped classrooms and digital learning

analytics
Undisclosed (3)
Apr-13
IndiaCan
Education
Acquisition
India
2008
Provides vocational education and training for

educating and employing the youth in India
Vocational Training
Together with the TutorVista buyout, it confirms

Pearson's inorganic expansion plan within India
$22.0m
Mar-13
Exam Design
Acquisition
US
2007
Provider of examination development software used in

high-stakes testing
Testing (Assessment)
Pearson VUE publishes exams created through

ExamDeveloper
Undisclosed
Feb-13
TutorVista
Acquisition
India
2005
Online tutoring and test preparation provider
Tutoring
Supports Pearson's acquisition expansion plan within

India
$25.7m
Oct-12
Embanet
Compass
Acquisition
US
1993
Provides technology-enabled services to traditional

non-profit postsecondary educational institutions
Online Learning
(Higher Education)
Caters to fast-growing demand for online learning in

higher education
$650.0m
May-12
Global
English
Acquisition
US
1997
Business English software for global enterprises
English Language Training

(ELT)
Supports two major themes of Pearson: ELT and a

strong focus on emerging markets
$90.0m
Oct-11
Knewton
Investment
US
2008
Adaptive learning platform that customizes

educational content based on student needs
Adaptive Learning
Pearson uses Knewtons software to power its online

reading, writing and math courses
$33.0m
Source: Pearson 2012 annual report, company filings, press releases, TechCrunch
(1)
Refers to North America
(2)
Refers to 2012 total revenue
(3)
Rumoured to be well above $10m
22

Reed Elsevier
Financial Summary
M&A is generally done through the operating group and investments are held through
Reed Elsevier Ventures
Reed Elsevier Ventures key focus areas; Healthcare IT, large scale data / analytics,
media
North America
RoW
Netherlands
7%
3%
52%
RoE
UK
11%
34%

14%
15% 22%
15% 21%
64%
63%
27%
14% 25%
61%
33%
17%
14%
59%
12%
20%
50%
13%
Currently operates across 4 professional segments: (1) Scientific, Technical & Medical
(2) Risk Solutions & Business Information (3) Legal (4) Exhibitions
37%
51%
40%
60%
48%
52%
Reed wanted to focus on the growing digital opportunities in its Scientific & Medical,
Legal and Business divisions
37%
80%
35%
Reeds education business, Harcourt Education, was largely acquired in July 2001 as
part of its acquisition of Harcourt General. In July 2007, Reed sold its education
business for $5bn to Houghton Mifflin Company
15%
100%
Primary listing on the LSE with a market cap of c. $13.7bn (1)
19%

19%
Revenue by Format (%)
15%
Headquartered in London (UK), founded in 1844 and employs c. 30.4k personnel

throughout 70+ countries
26%
Company Snapshot
0%
Digital
F2F
(2)
Print
Scientific, Technical & Medical

Legal
Risk Solutions
Exhibitions
Business Information
Recent e-Learning M&A and Fundraising Activity
Apr 2013
Mar 2013
Sep 2011
Elsevier, Reed Elseviers scientific, technical and medical information division,

acquired 100% of Mendeley from Access Industries, Ambient Sound,
Andurance Ventures and Passion Capital
Reed Elseviers corporate venture arm, Reed Elsevier

Ventures, lead a Series B investment of $10m in
Babbel.com
Reed Elsevier Ventures

participated in a $1.4m seed
round in Fingerprint Digital
Based in the UK, Mendeley is a cloud-based research management and social

Other investors included IBB Beteiligungsgesellschaft,

Kizoo Technology Capital, Nokia Growth Partners and VC
Fonds Technologie Berlin
Other investors included K2

Media, THQ and Suffolk Ventures
Mendeley claims 2.3m users, over 340m documents and c. 206k research
groups
Deal rationale: (1) allows for research content to be collaborative and open (2)
expands researcher workflow offerings and builds greater engagement with its
users
Based in Germany, Babbel creates online and mobile-based

language learning courses
Babbel employs 18o personnel and claims c. 15m users and
8m downloads
Fingerprint Digital creates mobile

learning apps for kids (3-8 years
old) and grown ups (the childrens
parents)
Transaction value was rumoured to be between $69-100m (3)
Source: Reed Elsevier 2012 annual report, company filings, TechCrunch

(1)
As at 12-Jun-13
(2)
Refers to face-to-face
(3)
As per TechCrunch
23

Holtzbrinck Publishing Group
Company Snapshot
Holtzbrinck's Investment Vehicles
Headquartered in Stuttgart (Germany), founded in 1971 and employs c. 13.8 k employees
Strong focus on
e-Learning
Georg von Holtzbrinck is a family-owned publishing group
Location
Year
Founded
Focus
# of Portfolio
Companies
NYC
2012
Stage: Late stage deals

Sector: US HE
London
2012
Stage: Venture deals

Sector: Global consumer
education with focus on EM
Munich
2000
Internet (B2B & B2C)
19
Munich
2000
Internet (B2B & B2C)
55
Holtzbrinck Publishing Group operates through three global divisions:
Global Trade (Consumer books)
Global Science & Education
Holtzbrinck Digital Information & Services
Takes advantage of e-Learning opportunities primarily through the following entities:

Macmillan New Ventures (MNV), Macmillan Digital Education and Macmillan
Education
In Jan and Jul 2012, Macmillan launched MNV and Macmillan Digital Education,
respectively to both serve as corporate venture arms
MNV is a $100m venture fund and is slated to add 10-15 companies to its
portfolio by 2015
Select Holtzbrinck e-Learning Investments & Acquisitions
Relevant News
Digital Education
Late Nite
Labs
Produces virtual online simulations for

science education
Veduca
Online video platform that aggregates and curates

publicly available educational content
PrepU
Focused on adaptive assessment in HE

and advanced placement courses (2)
easyaula
Online educational marketplace that makes it easy

for people to learn anything from anyone
EBI
Empowers college educators to positively

impact student retention, success,
learning and satisfaction
tutoria
Tutoring service for individual tutoring at

students homes
iClicker
Enables active learning and formative

assessment in classrooms
Maths
Doctor
Provides live one-to-one home tutoring via the

internet, plus worksheets and tutoring videos
Feb:13: Macmillan Education announces plans to

expand within the UAE
Sapling
Learning
Provides interactive homework and

instruction materials covering HE and
(2)
high school topics
English Up
Cloud-based English learning platform for busy

adults and young professionals
Feb-13: Macmillan Digital Education invests in

Brazilian startups, Veduca and Easyaula
Cramlr
Provides tools and learning algorithms for

teachers in order to create effective online courses
Nov-12: MNV acquires Sapling Learning
Macmillan Education
Jun-13: Macmillan Science & Education launches

Chinese head office in Shanghai
Macmillan New Ventures
bettermarks
Online math learning

system
May-13: Digital Science introduces Projects for

scientific researchers a new technology tool to
organise their data
May-13: Macmillan Education teams up with Knewton

to bring adaptive learning beyond K-12 and HE
Mar-13: MNV acquires Late Nite Labs
Source: Company websites, TechCrunch

(1)
1971 refers to the year that Verlagsgruppe Georg von Holtzbrinck GmbH holding company was founded. In 1948, Georg von Holtzbrinck
launched Die Stuttgarter Hausbuecherei together with a small publishing list
24

Bertelsmann
Company Snapshot
Company Structure
Headquartered in Gutersloh (Germany), founded in 1835 and employs c. 104.3k

personnel
Overview
#1 European broadcaster
Engages in the production, servicing, and marketing of media worldwide

Core divisions encompass television, book publishing, magazine publishing and services
in more than 50 countries
World's largest book-publishing group
Berteslmann takes advantage of e-Learning opportunities primarily through the

following entities:
Bertelsmann Digital Media Investments (BDMI): $63m corporate venture

fund launched in 2006 and based out of NYC
Bertelsmann AG: Parent company
University Ventures: $100m fund launched in Jan 2012, of which

Bertelsmann committed $50m. The other major investor is the University of
Texas Investment Management Company. The fund is focused on global
higher education and is based out of NYC
Provides outsourcing services
Select Bertelsmann e-Learning Investments

BDMI (Current & Exited Portfolio
Companies)
Bertelsmann AG
Europe's biggest magazine publisher
University Ventures
Produces magazines, catalogues, brochures, books and calendars
Relevant News
Jan-13: Bertelsmann announces $4m investment in
WizIQ and merges authorSTREAM into WizIQ
Flatworld
Knowledge
Largest publisher of open

college textbooks for
students worldwide
WizIQ
Offers tools to help teachers

around the world run virtual
classrooms
Synergis
Education
Partners with non-profit, traditional colleges and

universities to help expand their student base to
include the 21st Century Student
Dec-12: University Ventures announces the launch of

UV Labs, a company that will partner with schools to
build new online learning products
Learnship
Interactive
High quality foreign

language training via the
Internet
author
STREAM
Online platform for PowerPoint

users around the world to share
and collaborate on presentations
University
Now
Network of online and on-campus schools devoted

to making postsecondary education affordable and
accessible
Oct-12: BDMI announces investment in Learnship

Interactive
Provides e-books to a wide

range of sectors
Ameritas
College
Offers degree programs targeting Hispanic

Americans
Standardized test
preparation and admissions
consulting company
UV Labs
Self publishing and print ondemand
EDEX
Ebrary
(1)
The
Princeton
(1)
Review
Xlibris
(1)
Works with postsecondary institutions to build

products to solve issues of accessibility,
affordability, quality and accountability facing HE
Leading higher education company in the EU
(portfolio includes University of Nicosia,
Intercollege, Global Training)
Source: Company websites, press releases, TechCrunch

(1)
Refers to exited portfolio companies
Oct-12: Pearson and Bertelsmann announce an

agreement to create the worlds leading consumer
publishing organization by combining Penguin and
Random House (Bertelsmann will own 53% and
Pearson will own 47%)
May-12: University Ventures announces investment in
Ameritas College
25

Sanoma
Financial Summary
In Jun 2012, Malmberg acquired Bureau ICE, a testing and examinations company
63%
News
Learning
Other
Key e-Learning Developments in

2012
In May 2010, Sanoma Learning acquired the remaining 50% of YDP. Sanoma originally
acquired a stake in YDP in 1999 and increased its ownership in 2004
Centralised learning platform development
Sanoma Pro, Malmberg and Nowa Era accounted for c. 80% of Sanoma Learnings total
revenue in 2012
Mobile learning content and tools introduced
# of
Employees
Year of
Group
Inclusion
Company
Overview
HQ
Sanoma Pro
Provider of learning and

competence development
solutions
90m
211
1999
Finland
Malmberg
Educational publisher
90m
321
2004
Holland
Nowa Era
Educational publisher
70m
290
1999
Poland
122
2004
Belgium
65
2011
Sweden
Sanoma
Utbildning
Primary and secondary textbook

30m
publisher
One of Swedens leading
25m
educational publishers
NTK-Perfekt
Textbook publisher
20m
213
2006
Hungary
Young Digital
Planet
Educational and language

digital publisher
15m
290
1999
Poland
VAN IN
Belgium
Other EU
RoW
2012 Revenue by Format (%)
Piloting online tutoring

Digital learning methods grew double-digit
Overview of Sanomas Education Businesses

Revenue
(m) (3)
Holland & Finland
4%
Sanoma Learning operates in 6 European countries through 7 companies: Van In,

Sanoma Pro, NTK-Perfekt, Malmberg, Young Digital Planet (YDP), Nowa Era, and
Sanoma Utbildning
Media
11%
2012
Learning
Revenue
4%
18% 312m
Sanoma Learning, Sanomas education business, employs c. 1.8k personnel and

generated 312.4m of revenue in 2012
13%
13% 6%
Sanoma reports through 3 primary business units: Media, News and Learning (2)

11%
Print
Hybrid
30%
Primary listing on the Helsinki Stock Exchange with a market cap of c. $1.3bn (1)
74%
Headquartered in Helsinki (Finland), founded in 1999 and employs c. 13.7k personnel
53%
Company Snapshot
Pure Digital
Services
Relevant News
3.5m
students are learning
from Nowa Eras textbooks
94%
of Hungarian
schools are using
NTK methods
35k
# of users of Sanoma Pro Teachers
Online Service
50%
of all pupils in primary
schools use a textbook in English from
Sanoma Utbildning
95%
of Finnish schools use
Sanoma Pros digital services
23-Apr-13: Malmberg announces launch of new Arithmetic

Test app
22-Apr-13: Sanoma Pro Online is renamed to Fokus and
announces a new focus on team leading and supervising
16-Apr-13: Sanoma Pro introduces a new e-bookshelf
service containing professionals books focused on the
corporate market
12-Apr-13: NTK announces development of interactive ebook player
11-Apr-13: Sanoma Pro announces introduction of digital
textbooks for upper secondary schools
22-Jan-13: Young Digital Planet announces launch of
Nicole and Tommy, a course for children offered in 5
languages
Source: Annual reports, press releases, company website, Capital IQ

(1)
As at 12-Jun-13
(2)
Excludes other and eliminations, which represented 6% of 2012 revenue
(3)
Refers to approximate revenue figures as per Sanoma Learnings capital market day presentation dated 14-Jun-13
26

Grupo Planeta & Lagardre
Company Snapshot
Company Snapshot
Headquartered in Barcleona (Spain) and founded in 1949
Grupo Planeta is a leading family-owned Spanish publishing and communication group

that offers a broad range of services
Headquartered in Paris (France), restructured and renamed to Lagardre SCA in 1996

and employs c. 22.5k personnel
Primary listing on the Paris Euronext with a market cap of c. $3.5bn (1)
Areas of activity include publishing, major works, bookstores and reading clubs,
collectibles, media, cinema and audio-visual production, training and professional and
internet
Lagardre is a global media group that operates in c. 30 countries through four business
units: Lagardre Publishing (Book and e-Publishing), Lagardre Active, Lagardre
Services and Lagardre Unlimited
Grupo Planeta offers a wide range of specialist educational & training courses from
language learning to university studies and MBAs
Education operates within the Lagardre Publishing business, which generated 2.0bn
of sales (28% of total group revenue) in 2012, of which education represented 18%
The companys educational & training courses are focused on the needs of the Spanish
labour market in addition to incorporating new forms of distribution models via
technology (e.g. e-Learning, virtual campuses, video)
Lagardre is the worlds 2nd ranking publisher and the #1 book distributer in France
e-Books contribution to 2012 publishing revenue: Lagardre Publishing (8%), US

Publishing (23%), UK Publishing (23%), France Publishing (2%)
Financial Summary & Overview of Education Brands
Overview
Online educational tool that enriches classrooms with audiovisual and interactive tools and contents
Digital?
Lagardres Select Education Brands
Company
CEAC
Study centres in vocational training courses
Deusto Formacion
Training for technicians and middle managers
Deusto Salud
Specialist training for positions in the healthcare jobs market
EAE Business School
Undergraduate and graduate business school with two Spanish

campuses and international campuses
English Today
Online English learning platform
Home English
Personalised language teaching
Laudeo Oposiciones
Training programme for public sector entrance examinations

First Spanish-language online business school
Corporate training provider
Superpadres
Provides teaching projects to accompany parents during the

process of educating their children
Publishes works for classroom and

home use
France
Leading educational publishers in

France offering 2,500 different
book titles
Armand
Leading HE publisher in the fields
Collin
of human and social sciences
Publishes books and teaching tools
Hatier
tailored to the needs of teachers in
International Africa and French overseas
territories
Publishes for schools, vocational,
Hodder
higher education and self-learning
Education
markets
Dynamic
Online teaching and learning
Learning
resource s
Philip Allan Publishes a wide range of
Updates
educational resources
Hatier
France
15%
18%
France
UK-AUS-NZ
UK-AUS-NZ
General
Literature
Other
4%
374m
2012
Education
Revenue
France
Education
40%
Illustrated
Books
Reference
23%
2012 Publishing Revenue by

Geography (%)
UK-AUS-NZ
Anaya
Textbook publisher
Spain-LatAm
Hachette
Antoine
Textbook publisher
Arab Speaking
Countries
Source: Annual reports, press releases, company website, Capital IQ

(1)
As at 12-Jun-13
Activity (%)
France
RoW
US
UK
8%
Reference journals for the business world
Market
17%
Online Business
School
Planeta Formacion
Corpotiva
Revistas Harvard
Deusto
Hachette
Education
Overview
20%
Aula Planeta
2012 Publishing Revenue by
23%
Company
33%
Overview of Training & Professional Businesses
Spain
27
The European
Education Market
Distribution of Companies
Breakdown of European e-Learning Companies by Country in 2012
Key Points
1,000
750
Kompass International found c.3,000

European companies in the e-Learning
sector
671
532
98
92
92
88
84
76
64
54
Norway
Spain
Belgium
Romania
Finland
Slovakia
104
Other
109
Denmark
Poland
Germany
UK
France
127
Italy
303
250
Czech Republic
378
Sweden
500
Breakdown of European e-Learning Companies by Sector in 2012

1,000
908
862
750
430
500
321
350
250
8
Software for
education and
training
Software
Consultants
Training courses
Language
courses
Web-based
training
Polands government is investing

heavily with the aid of EU structural
funds into e-Learning and learning
technologies for education
The UK market has approximately 260
e-Learning software development
companies, more than double France
(2.5x), the next largest market in
Europe
In France, 1% of any companys salary
bill must be spent on training and
development or it is levied as a tax on
employers partially explaining the large
amount of corporate training
companies in France
Despite being the largest market in
Europe, the number of UK e-Learning
software development companies have
fallen by 11% p.a. for the last 2 years, in
part due to consolidation within the
industry
Source: Kompass International

Note: The figures represent the companies who have registered with Kompass International, and should not be taken as a true
reflection of market size and activity. Nevertheless it is a good indication of activity within markets in the absence of other comparable data sets
29
Learning Populations Across Europe

Projected 2015 Student Population Across Different Age Groups
Key Points
(m)
20.0
5-14
15-20
20-29
17.9
13.9 13.1
12.1
9.4
10.0
7.5 6.9
3.5
2.3 2.0 2.0 1.9 1.8 1.7 1.5 1.4

1.2 1.1 1.1 1.0 0.9 0.4
0.2 0.1
Iceland
Estonia
Slovenia
Slovak Republic
Ireland
Norway
Finland
Denmark
Switzerland
Austria
Czech Republic
Hungary
Portugal
Sweden
Greece
Belgium
Netherlands
Poland
Spain
Italy
UK
France
Germany
Turkey
0.0
2012 Employed Working Population for Persons in between 20-64 Years Old
0.4
0.2
0.2
0.2
Malta
Iceland
0.6
Estonia
Cyprus
0.9
Latvia
Luxembourg
1.2
0.9
1.3
Croatia
Slovenia
1.8
Ireland
Lithuania
2.3
2.3
Finland
2.4
Norway
Slovakia
2.9
3.6
Greece
2.5
3.9
Hungary
Bulgaria
3.9
Austria
Denmark
4.2
4.1
Portugal
4.4
Sweden
Switzerland
4.5
Belgium
7.7
4.8
Netherlands
Czech Republic
8.8
Romania
15.3
Poland
22.3
16.7
Spain
23.3
25.2
20.0
The working population in Europe is

also significantly larger than that of the
US, with approximately 239m workers
in Europe as compared to 155m in the
US
The key markets can be seen by the
population sizes, however students and
workforce numbers do not directly
correlate
38.4
27.7
(m)
40.0
The total enrolled student population

in Europe is approximately 111m as
compared to US with approximately
77m enrolled students. European
governments (EU 27) spent
approximately Euro 674bn in 2011,
equivalent to approximately 5.3% of
GDP. Denmark and Iceland allocating
the largest share of GDP (7.8%).
European market has a significant

addressable market for e-Learning
with an already sizeable commitment
to education
Italy
Turkey
France
UK
Germany
0.0
Source: OECD, Eurostat
30
The European e-Learning Landscape

P = Pupils
T = Teachers
S = Schools
European e-Learning
The numbers within

countries indicate the
number of e-Learning
companies in that
country
P: 7m
2012 total expenditure
T: 265k
S: 27k
Academic
64
92
127
P: 44m
92
T: 1.3m
P: 13m
S: 159k
532
303
88
109
47m
T: 2.7m
88
T: 331k
S: 65k
378
54
76
671
P:
$7.6bn
$966bn
Number of pupils
111m
Number of teachers
4.6m
Number of schools
417,144
Corporate
$71bn
Working population
239m
98
S: 166k
Source: McKinsey, OECD, Eurostat, Eurypedia, National Statistic Offices, Ministry of Educations, Kompass International
Note: The figures represent the companies who have registered with Kompass International, and should not be taken as a true
reflection of market size and activity. Nevertheless it is a good indication of activity within markets in the absence of other comparable data sets
31
Population Growth Rates & Internet Penetration

Student Population 2010A-2020P CAGRs
3.0%
5-14
2.2%
2.0%
1.0%
1.3%
0.6%
0.6%
0.3% 0.3%
20-29
0.4% 0.3%
0.1%
0.0%
0.7%
0.5%
0.1%
0.8%
0.4%
0.5%
0.2%
0.2%
0.3%
0.1%
1.2%
1.1%
0.1%
(1.0%)
(2.0%)
UK
Turkey
Switzerland
Sweden
Spain
Slovenia
Slovak Republic
Portugal
Poland
Norway
Netherlands
Luxembourg
Italy
Ireland
Iceland
Hungary
Greece
Germany
France
Finland
Estonia
Denmark
Czech Republic
Belgium
Austria
(4.0%)
Population and Internet Penetration by Region
85%
97%
91%
69%
58%
78%
72%
72%
71%
65%
97%
89%
77%
79%
90%
82%
51%
80%
93%
73%
65%
81%
53%
55%
44%
Iceland
Liechtenstein
1
Cyprus
Malta
1
Estonia
Source: OECD, Internet World Statistics
Luxembourg
4
Lithuania
4
Croatia
Latvia
5
Norway
Slovenia
5
Slovakia
Ireland
6
Denmark
Finland
7
Bulgaria
8
Austria
Switzerland
9
Sweden
10
10
10
Belgium
Czech
11
Greece
Hungary
11
Portugal
17
22
Romania
Netherlands
Poland
Spain
France
Turkey
0
Germany
Countries such as Germany are

expected to see the biggest falls in
student populations
Internet penetration is highest in
Western Europe and the Nordic
countries whilst Southern Europe and
Central & Eastern Europe is less
penetrated
38
47
50
65%
67%
84%
58%
63
61
UK
Italy
83%
81
46%
80
66 80%
Penetration (% Population)
93%
Population 2012E (m)
100
OECD projects that the overall student

population will fall to 104m in 2020,
driven mostly by the declining growth
rate of students between 15-29
Overall population birth rates are
leading indicators to growth in the
lower age range.
(3.0%)
150
Key Points
1.9%
1.5%
1.2%
15-20
32
European ICT Infrastructure in Schools

Summary of Infrastructure Penetration in Schools Across Europe by number of
computers, number of connect computers and % of schools that have broadband
Computers per 100 students
10
10
100%
31
75%
24 23
16
13 12
11 10
33
75%
20 19
16 15
20
94%
75%
71%
65%
% schools with broadband
96%
95%
92%
40
30
Computers connected to the internet per 100 students
50%
14
0%
2011-12
2006
Grade 4
2011-12
2006
Grade 8
2011-12
Grade 11 General
2006
2011-12
Grade 11 Vocational
Grade 4
75%
Grade 8
2006
2011-12
86%
71%
Grade 11 General
91% 95%
81%
73%
Uses
51%
Used ICT for

Used ICT in class Used ICT in >25%
preparing
last year
of lessons last year
lessons last year
23%
Insufficient
computers
26%
21%
10%
Lack of
teacher
skills
10%
Lack of
content
9%
44%
23%
8%
Lack of
content in
national
language
Used ICT for

preparing
last year
lessons last year
Insufficient
computers
Lack of
teacher
skills
10%
Lack of
content
9% 7%
Lack of
content in
national
language
Insufficient
computers
Source: Survey of Schools: ICT in Education
87%
49% 50%
Used ICT for

preparing
last year
lessons last year
47%
27%
20%
11%
77%
32%
49%
46%
33%
Grade 11 Vocational
93% 97%
84%
35% 32%
34% 29%
Used ICT for

preparing
last year
lessons last year
Inhibitors
91% 96%
Computers in schools has increased

however this still remains the largest
inhibitor to ICT use
Lack of content in the national

language remains an issue
Summary of Uses and Inhibitions of Use of ICT in Education Across Europe

(% of Teachers)
88% 96%
The principal use of ICT by teacher is

in preparing lessons (mean use of over
95% across the all grades and
countries)
25%
0
2006
Key Points
Computer and broadband penetration
to schools across Europe has increased
significantly over last 5 years
18%
11%
18%
14%
Lack of
teacher
skills
Lack of
content
19%
Lack of
content in
national
language
22%
21%
10%
7% 7%
Insufficient
computers
Lack of
teacher
skills
11%
Lack of
content
8% 7%
Lack of
content in
national
language
33
Digitally Equipped Schools

Percentages of Students by School Type in Terms of Equipment
Type 1
Type 2
Type 3 (see key points for definition)
Grade 4 (9.5 average age)

Norway
Sweden
Finland
Denmark
Spain
Malta
Portugal
Estonia
Ireland
Luxembourg
Latvia
Cyprus
France
Belgium
EU
Czech_Rep
Austria
Lithuania
Slovenia
Croatia
Hungary
Greece
Bulgaria
Slovakia
Romania
Italy
Turkey
Poland
0%
Finland
Sweden
Denmark
Norway
France
Malta
Portugal
Latvia
Spain
Estonia
EU
Austria
Ireland
Belgium
Lithuania
Croatia
Bulgaria
Czech_Rep
Cyprus
Greece
Poland
Slovenia
Hungary
Slovakia
Romania
Italy
Turkey
20%
40%
60%
80%
100%
Type 1: Highly digitally equipped

schools, characterised by relatively high
equipment levels, fast broadband and
relatively high connectedness
Type 2: Partially digitally equipped
schools, with lower than type 1
equipment levels, slow (less than
10mbps) or no broadband, and some
connectedness
Type 3: As type 2 but with no
connectedness
0%
Grade 11 General (13.5 average age)
20%
40%
60%
80%
100%
Grade 11 Vocational (13.5 average age)

Sweden
Norway
Denmark
Finland
Estonia
Croatia
France
Austria
Slovenia
Spain
Bulgaria
Lithuania
Portugal
EU
Latvia
Belgium
Czech_Rep
Greece
Cyprus
Hungary
Slovakia
Turkey
Italy
Romania
Poland
Sweden
Norway
Denmark
Finland
Slovenia
Croatia
France
Latvia
Estonia
Austria
Czech_Rep
Portugal
EU
Spain
Belgium
Bulgaria
Malta
Lithuania
Slovakia
Hungary
Cyprus
Ireland
Italy
Poland
Greece
Turkey
Romania
0%
Legend
Grade 8 (13.5 average age)
25%
50%
75%
100%
0%
Key Points
The Nordic region represent the most
digitally enabled region within Europe
Surprisingly Grade 8, around age 14, is

the demographic most badly served in
the schools digital environment
25%
50%
75%
100%
Source: Survey of Schools: ICT in Education

Note: Criteria looked used to evaluate extent of digitally equipped school:
Equipment provision: numbers of desktop, laptop computers, e-readers, mobile phones, interactive whiteboards, digital cameras and data projectors;
The proportion of fully operational equipment; Broadband speed and type of broadband access; Maintenance and support; Indicators of
34
The European
Corporate Learning
Market
e-Learning Penetration Increasing in European Corporates

% of Employees Using e-Learning
Across European Countries
% of Employees Using e-Learning

Across All Firm Sizes
Country
Firm Size by
Employees
< 10%
10-50%
60%
UK
40%
43%
30%
29%
20%
> 50%
51%
60%
39%
2010 2012
33%
19%
29%
35%
38%
2010 2012
60%
44%
1,000-5,000
20%
2010 2012
40%
40%
32%
19%
2010 2012
38% 42%
19%
40%
> 10,000
2010 2012
25%
35%
2010 2012
2010 2012
30%
31%
41%
2010 2012
35%
41%
12%
2010 2012
2010 2012
2010 2012
% Budget Spent on e-Learning
36%
18%
20%
2010 2012
51%
44%
40%
17%
25%
8%
0%
2010 2012
40%
34%
Companies are increasing their use of

e-Learning regardless of their size
0%
2010 2012
Italy
2010 2012
UK and Spain are leading the adoption

of e-Learning in Europe
12%
20%
0%
60%
2010 2012
60%
20%
France
25%
0%
2010 2012
60%
39%
40%
Market acceptance of e-Learning has

resulted in increasing use for both large
and small companies
34%
27%
51%
20%
0%
Benelux
43%
26%
0%
2010 2012
60%
60%
> 50%
20%
5%
2010 2012
40%
10-50%
40%
40%
< 1,000
0%
Spain
< 10%
Key Points
2010 2012
2010 2012
53%
43%
26%
26%
4%
< 5%
7%
5-9%
44%
12%
20-29%
26%
15%
20%
0%
2010 2012
2010 2012
2010 2012
10-19%
> 30%
25%
Source: Ipsos, CrossKnowledge, Fefaur
n/a
36
Corporate Training in the UK

Total UK Training Expenditure 2011
Key Points
Training spend per learner
Indirect
costs
50%
49bn
Direct
50%
838
Contribution and Proportion of Direct Costs by Country

Total expenditure (bn)
Direct costs (%)
85%
100%
59%
56%
51%
3%
9%
3%
Northern Ireland
Scotland
Wales
Included in their number is the

foregone cost of employees salaries and
wages whilst on training, otherwise
known as indirect costs, which account
for c.50% of the total amount spent
50%
50%
0%
England
Total Expenditure and Number of Skill-Shortage Vacancies in the UK by Sector 2011

10.0
Total expenditure (bn)
Direct costs (%)
9.5
100%
6.7
5.4
5.0
3.5
0.9
3.5
3.4
2.8
2.5
1.5
0.0
Thousands
Business services sector suffers from

the largest shortage in skills in the UK
after the wholesale and retail sector
5.4
3.5
0.3
0.1
The UK Commissions Employer Skills

Survey 2011: UK Results, was the first
report that accurately calculated the
amount of spend applied to corporate
training
50%
0%
30
Number of skill-shortage vacancies
15
11.8
9.5
2.6
0.7
0.5
5.4
Proportion
8.8
50%
26.9
9.1
4.3
3.2
3.7
6.7
10.2
Other activities
Health and
social work
Education
Public
administration
Business
services
Financial
services
Transport and
communicatio
ns
Hotels and
restaurants
Wholesale and
retail
Construction
Electricity,
Gas, Water
Manufacturing
Mining and
Quarrying
0%
Agriculture
25%
Source: UK Commission's Employer Skills Survey 2011: UK Results, Bersin & Associates
37
Corporate Training in the UK

Learning Technology Spend (% Budget)
L&D Spending per Learner by Firm Size
15%
2009
2012
Spend per learner in the US was $706

per learner, according to Bersin &
Associates, almost half of that in the
UK (838 = c.$1,300)
955
838
693
7% 7%
6%
685
8%
7%
5%
Of the large companies in the UK, twothirds are reporting reductions in

training budgets in 2012
3%
Large
Midsize
Small
Total UK
Large
Training Delivery Methods in UK

2009 vs. 2012
Midsize
53%
2009
Total UK
53%
48%
2012
10%
e-Learning
Small
Training Delivery Methods 2012

UK vs. US
77%
Instructor-led
classroom
15%
15%
22%
14%
Experiential
14%
10%
10%
6%
4%
Virtual instructorled classroom
6%
6%
Compared to 2009, twice as many UK

firms now use learning management
systems (LMSs) and learning content
management systems (LCMSs), and
three times as many use rapid elearning tools
1%
1%
0%
US
12%
9%
Other
UK
UK large businesses employ 8.1 L&D

staff for every 1,000 learners, on
averagemore than twice the number
of their US counterparts
US is using significantly more eLearning solutions than the UK for the

provision of training
10%
Collaborative
Key Points
1%
50%
100%
0%
20%
40%
60%
Source: CrossKnowledge, Ipsos, Fefaur, Bersin & Associates
38
General European
Investment
Trends
European Investment in 2012 (All Sectors)

Investments by Stage and Region (bn)
bn
3.0
Rescue Capital
Replacement Capital
Investments by Stage
Growth Capital
Venture Capital
Buyout
8.0
10.2
2.0
1.0
0.4
0.1
0.4
0.1
0.1
1.1
0.8
Buyout
77%
8.6
0.0
0.8
3.6
0.1
0.1
0.4
0.0
0.8
10.0
8.1
0.8
5.6
0.8
4.8
0.0 0.0
0.4
0.5
0.2
Start-up
5%
1.0
0.0
0.2 0.0
0.1
2.8
Growth
10%
Rescue
1%
Replacement
3%
6.9
5.0
Later-stage
3%
Seed
0%
3.9
0.7
0.0
UK &
Ireland
France &
Benelux
DACH
Southern
Europe
Nordics
CEE
Investments by Stage and Region (# of Companies)

Number of companies
1,500
1,546
11
1,287
1,000
29
740
500
21
410
7
325
11
15
109
432
12
74
414
577
965
71
24
220
173
139
Growth
21%
Rescue
1%
224
1
671
58
123
319
400
200
Later-stage
17%
887
37
Investments by Stage
91
123
Southern
Europe
Nordics
Seed
7%
Start-up
35%
Key Points
The buyout market dominates
investment by value whilst venture
capital represents the largest number
of deals
Although UK & Ireland attracts more
investment capital than other areas of
Europe, France & Benelux attracts
more venture and growth capital
A small proportion of capital (4% by
amount and 3% by number of
companies) is applied to rescue or
replacement investments, which is
consistent throughout economic cycles
Earlier stage investment by number of
companies is most active in Germany,
Austria and Switzerland (DACH). UK
and Ireland are relatively inactive,
lying behind France & Benelux, DACH
and the Nordics
Replacement
2%
Buyout
17%
33
0
UK &
Ireland
France &
Benelux
DACH
CEE
Sources: EVCA, PEREP_Analytics

Notes:
(1)
Country region breakdowns are as follows: DACH (Austria, Germany, Switzerland), Nordics (Denmark, Finland, Norway, Sweden), Southern Europe
(Greece, Italy, Portugal, Spain), CEE (Central Eastern Europe)
40
Geographic Investment Dynamic in Europe

Non-European private equity
firms investing in portfolio
companies in Europe
Key Points
The majority of institutional capital is
invested within domestic markets in
Europe with cross-border activity
accounting for 23% and rest-of-world
funds accounting for 2% of the
investment pool
Currently, there is a net outflow of
private equity and venture capital from
Europe
0.8bn
Cross-border
investments
within Europe
1.2bn
8.3bn
European
private equity
firms investing
in portfolio
companies
outside Europe
Equivalent geographic venture capital

investment flows are as follows:
210m
369m
2,365m
610m
27.4bn
Domestic
investments in
European Countries

Notes:
(1)
Europe includes: Austria, Baltic countries (Estonia, Latvia, Lithuania), Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany,
Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Other CEE (Bosnia-Herzegovina, Croatia, Macedonia, Montenegro, Serbia,
Slovenia, Slovakia), Poland, Portugal, Romania, Spain, Sweden, Switzerland, Ukraine, United Kingdom
41
Venture Capital Investment Decreasing in Europe

Comparison of Venture Capital vs. Growth Capital Applied in 2012 and as an Average
0.100%
A positive percentage indicates more venture capital applied
2012
2007-2011 Average
0.050%
Last year showed a trend towards

growth capital versus venture capital
except for in Hungary, Sweden,
Denmark, Ireland, Switzerland and
Austria (as per top chart)
0.000%
(0.050%)
(0.100%)
Most countries venture capital and

growth capital investments as a % of
GDP are below the 2007-2011 average
0.000%
0.000%
0.002%
0.001%
2007-2011 Average
0.002%
0.002%
0.003%
0.010%
0.005%
0.011%
0.011%
0.021%
0.023%
0.025%
0.021%
0.024%
0.025%
0.027%
0.029%
0.029%
0.032%
2012
0.033%
0.038%
0.054%
0.050%
0.041%
0.054%
0.075%
0.065%
Venture Capital Investments as a % of GDP by Country

0.100%
Key Points
0.000%
Last year, Hungary received over 2x its

2007-2011 average investment
In general, little capital has been
applied to Central & Eastern European
Growth Capital Investments as a % of GDP by Country
0.000%
0.000%
0.003%
2007-2011 Average
0.003%
0.008%
0.008%
0.012%
0.009%
0.012%
0.019%
0.020%
0.021%
0.020%
0.024%
0.027%
0.027%
0.036%
0.033%
0.038%
0.039%
0.041%
0.051%
0.045%
0.053%
0.100%
0.060%
0.200%
2012
0.005%
0.300%
0.000%

Notes:
(1)
42
The Trend in European Investment Across all Stages

Investment by Stage from 2007 to 2012 (bn)
bn
Rescue Capital
Replacement Capital
8.0
6.0
6.7
6.3
6.0
Venture Capital
4.3
5.2
3.8
1.9
3.7
3.6
2.0
1.6
0.5
Buyout
Key Points
3.8
Investment in Europe is on the decline

across all stages of investment
6.3
5.1
4.0
2.0
Growth Capital
1.8
0.7
0.3
3.2
0.5
0.5
1.0
0.4
1.1
0.0
60
57.2
38.4
30
29.7
34.5
2010
2011
28
12.7
0
2007
2008
2009
The shift to growth capital can be

clearly seen in the investments in
growth companies increasing despite
the decline in the amount of capital
applied
3,836
3,246
3,094
3,010
3000
Whilst venture capital is in its decline,

nearly 3,000 companies were invested
in last year
2012
Investment by Stage from 2007 to 2012 (Number of Companies)

Number of companies
4000 3,441
Venture capital investments have been

falling at a faster rate than growth
capital investments as people shift
their attention to less risky
opportunities
2,988
2000
1000
348 52 140
593
174
68
994
775
150 176
1,047
932
132 135
103 76
67 118
0
4000
2000
1,299
1,161
2007
2008
615
783
881
878
2009
2010
2011
2012

Notes:
(1)
43
Success Rates & Exit Times: Europe vs. US
Probability of Exit from First Round of VC

Financing
Exit Assumptions &
Vintage Years (1)
IPO Probability
Probability of Exit within 5 Years
IPO
M&A Probability
1995-1999
2000-2003
12.5%
12.2%
40.0%
32.2%
3.1%
4.4%
35.5%
2000-2003
1.4%
2.9%
20.9%
17.1%
2004-2007
1.2%
1.7%
18.3%
12.5%
Europe
12.5%
Europe
2.9%
The probability of exit via M&A and the

average time to M&A have not changed
significantly over time
17.1%
3.5%
27.8%
Unsurprisingly, across the US and

Europe, the probability of exit via an
IPO has declined
M&A
1.7%
Within 10 years:
14.4%
Within 5 years:
1.2%
US
18.3%
US
1.4%
0.1%
1.1%
5.0%
3.5%
2008-2011
0.2%
0.5%
6.1%
2.2%
04'-07' Vintages
IPO Time to
Exit (Months)
2000-2003
00'-03' Vintages
IPO
M&A Time to
Exit (Months)
95'-99' Vintages
32
62
30
45
65
51
52
50
Europe
Contrary to the publics perception,

there is no significant difference in the
success rates of European and US exits
via IPOs from the same vintage year
With regards to success rates of
European and US exits via M&A,
Europe is at a disadvantage
M&A
22
Within 10 years:
1995-1999
26.3%
Time to Exit within 5 Years

(months)
Time to Exit
Exit Assumptions
& Vintage Years
20.9%
6.9%
Within 2 years:
2004-2007
Key Points
33
Europe
36
35
21
36
Within 5 years:
1995-1999
25
21
30
36
2000-2003
47
36
33
35
2004-2007
43
22
36
33
43
US
47
36
US
25
33
30
Within 2 years:
2004-2007
14
17
16
2008-2011
10
18
17
17
04'-07' Vintages
00'-03' Vintages
95'-99' Vintages
Source: BVCA European Venture Capital: Myths and Facts

(1)
A vintage year is defined as the year of the first investment
44
The European
EdTech 20
European EdTech Top 20

The Fastest Growing & Most Innovative Companies in Europe
20
Companies from
9 countries across Europe growing between 13% - 934% last year
Companies
Description
ALISON
Accredited online skill-based courses
Brightwave
End-to-end corporate training
Classroom Monitor
Assessment/Analytics for K-12 market
Coursio
Content portal
Dnevnick
Educational social network
EPIC Learning
FindCourses
Corporate learning course procurement
GCSEPod
Test & prep mobile platform
InfoMentor
VLE for primary market
10
ITycom
11
Labster
Immersive learning in virtual labs
12
Languagelab
Immersive learning for corporates
13
Languagenut
Language learning targeting K-8
14
Mangahigh
Online platform for K-12 maths education
15
Mendeley
Open ecosystem for academic research
16
Serious Games Interactive Serious gaming for corporates
17
Siveco
End-to-end academic/corporate learning
18
Sofatutor
Online private tutoring
19
Twig World
Digital learning resources for 7-16 year olds
20
Virtual College
Accredited online vocational courses
Top 1-3
Top 4-6
Top 7-20
Sources: European EdTech Top 20, Company information
46
Appendix
A Closer Look at
the European
Education Market
School Models, Average Size & the Distribution Private School

Main Models of Primary and Lower Secondary Education in Europe in 2010/2011
Key Points
Single Structure (ISCED1 + ISCED2)

Continuous education from beginning to the end
of compulsory schooling with no transition
between primary and lower secondary education
In almost half of all European

countries, students follow the same
common core curriculum during lower
secondary education after primary
education, i.e. up to 15 or 16 years of
age
Common core Curriculum (ISCED2)

Primary education followed by a common core
curriculum during lower secondary education
On average in Europe, 12% of schools

are private schools
Differentiated branches/streams (ISCED2)

Primary education followed by differentiated
secondary education delivered through distinct
educational pathways
In Europe, the average school size for a

15-year old is 605 pupils
Distribution of 15 year-old Students by Size of School

1,310
1,062 984
938
920
862
768
750
737
696
674
633
624
620
620
616
575
561
554
534
480
475
433
432
419
418
411
410
388
330
Distribution of Students Attending Public or Private Schools Primary and Secondary Schools (ISCED 1-3)
296
258
159
Private
n/a
n/a
n/a
Public
100%
75%
50%
25%
0%
Source: Eurydice, OECD, PISA, Eurostat, UOE

Note:
(1)
There are some country discrepancies in the data
(2)
Where the data is not available for a specific year, the latest available data has been taken
49
Length of Compulsory Education & Expected Duration in Education

Expected Duration of Education for 5
year olds 2000-2009 (ISCED 0-6)
Compulsory Education Across Europe

1980/81
Part-time
0
2006/07
10
12
14
2010/11
16
18
20
Belgium (FR)
EU27
Belgium (DE)
Austria
Belgium (NL)
Belgium
Bulgaria
Bulgaria
Czech Republic
Croatia
Denmark
Cyprus
Germany
Czech Republic
Estonia
Denmark
Ireland
Estonia
Greece
Finland
Spain
France
France
Germany
Italy
Greece
Cyprus
Hungary
Latvia
Iceland
Lithuania
Ireland
Luxembourg
Italy
Hungary
Latvia
Malta
Netherlands
Liechtenstein
Austria
Lithuania
Poland
Luxembourg
Portugal
Malta
Romania
Netherlands
Slovenia
Norway
Slovakia
Poland
Finland
Portugal
Sweden
Romania
UK (excl. N. Ireland)
Slovakia
Northern Ireland
Slovenia
Iceland
Spain
Liechtenstein
Sweden
Norway
Switzerland
Croatia
Turkey
Turkey
United Kingdom
10
2000
15
2005
Key Points
2009
20
Across Europe, compulsory full-time

education lasts for a minimum of 8
years with most countries lasting
between 9 and 10 years. This
represents the recurring school market
that is replenished year on year
On average, the duration of education
across the EU-27 was 17.2 years, c.9
years more than the minimum length
of compulsory education
In addition, the Europe 2020 Strategy

has set a target that at least 95% of
children between the age of four and
the age for starting compulsory
primary education should participate
in early childhood education
Source: Eurostat, UOE

Note:
(1)
There are some country discrepancies in the data, new UK reporting in 2009 obscures the data on the expected duration of Education for 5 year olds
(2)
Where the data is not available for a specific year, the latest available data has been taken
50
Europe Still Requires Widespread Improvement in Basic Skills

Percentage of Low Achievers in Basic Skills in 2006 and 2009
Key Points
60
2006
41
36
20
23
20 18
15
19
13
17
18
18
15
14
21 22
18
17
18
23
25
17
16
15
8
n/a
60
47
47
40
20
30
22
22 19
17
19
21
24 23 25
23
The EU-25 mean of low achievers, i.e.

those who fail to acquire basic skills by
the age of 15, is c.20% in reading,
maths and science. The Europe 2020
Strategy is targeting to bring this
number below 15% across Europe
42
34
33
26 24
22
13
13
Evidently, there has been a lack of

significant widespread improvement
across Europe from 2006 to 2009 in
basic competencies such as reading,
maths and science
23 21 24
21 20
20 21
18
17
10
n/a
EU
Belgium
Bulgaria
Czech
Denmark
Germany
Estonia
Ireland
Greece
Spain
France
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Malta
Netherlands
Austria
Poland
Portugal
Romania
Slovenia
Slovakia
Finland
Sweden
UK
Croatia
Iceland
Turkey
Liechtenstein
Norway
Maths
28
24 26
21 20 20 21
EU
Belgium
Bulgaria
Czech
Denmark
Germany
Estonia
Ireland
Greece
Spain
France
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Malta
Netherlands
Austria
Poland
Portugal
Romania
Slovenia
Slovakia
Finland
Sweden
UK
Croatia
Iceland
Turkey
Liechtenstein
Norway
Reading
40
2009
40
60
33
25
18 18
17 17 15
15
18 19 21
15 17
30
24
14
21
13
13
17
15
n/a
19
19
6
19 18
15
11
16
EU
Belgium
Bulgaria
Czech
Denmark
Germany
Estonia
Ireland
Greece
Spain
France
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Malta
Netherlands
Austria
Poland
Portugal
Romania
Slovenia
Slovakia
Finland
Sweden
UK
Croatia
Iceland
Turkey
Liechtenstein
Norway
Science
20
41
39
40
51
The Majority of 15 Year Olds Spend Little Time on Homework

Distribution of 15-year-old students according to the number of hours a week they
report spending on homework and study at home, public and private sectors
combined, 2009
Language of instruction
Maths
Science
No time or <2 Hours
2 4 Hours
AT
BE (DE)
BE (FR)
BE (NL)
BG
CY
CZ
DE
DK
EE
EL
ES
EU
FI
FR
HR
HU
IE
IS
IT
LI
LT
LU
LV
MT
NL
NO
PL
PT
RO
SE
SI
SK
TR
UK - 1
UK-SCT
70
80
90
100
The findings from an analysis by Hattie

(2009, p. 234) conclude that the
frequency of mathematics homework
has a positive impact on achievement,
whereas homework that requires
longer periods to complete does not.
Furthermore, rote learning leads to
more effective results with increased
knowledge retention
>4 Hours
AT
BE (DE)
BE (FR)
BE (NL)
BG
CY
CZ
DE
DK
EE
EL
ES
EU
FI
FR
HR
HU
IE
IS
IT
LI
LT
LU
LV
MT
NL
NO
PL
PT
RO
SE
SI
SK
TR
UK - 1
UK-SCT
60
Key Points
AT
BE (DE)
BE (FR)
BE (NL)
BG
CY
CZ
DE
DK
EE
EL
ES
EU
FI
FR
HR
HU
IE
IS
IT
LI
LT
LU
LV
MT
NL
NO
PL
PT
RO
SE
SI
SK
TR
UK - 1
UK-SCT
0
10
20
30
40
Despite the statement above on rote

learning, Finnish students do less
homework and spend fewer hours at
school than the OECD average and the
country consistently ranks among the
Top 3, sharing honours with education
superpowers, such as China, Korea and
Singapore, which are associated with
rigid discipline and rote learning
The Flipped Classroom concept has
been gaining traction in Europe
changing the emphasis on the aim of
homework or home learning
10
20

Note:
(1)
UK 1 includes England, Northern Ireland and Wales; UK SCT includes only Scotland
52
Language Learning Across Europe

Percentages of Pupils Learning at Least 2
Foreign Languages in EU, 2000-2010
2.0 2.4
1.5 1.9
1.0 1.4
1.5 0.9
60%
Key Points
At present, it is obligatory to learn at
least one foreign language in
compulsory education with a second
language optional in most of the
member states
2.5 - 3.0
ISCED 2
ISCED 3
ISCED 3 prevocational and vocational
80%
Average Number of Languages Learned

Per Pupil in General Upper Secondary
The Barcelona European Council of

2002 set the objective for teaching at
least two foreign languages from a
early age, we can see that over the
period of 2002-2012, pupils learning 2
languages in ISCED 2-3 increased
40%
20%
Despite the above statement, the ESLC

average of mastering the first foreign
language to an independent level is
below 45% which significantly worsens
at mastering a secondary level with an
average at 25%(1)
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
0%
Percentage of Tested Pupils Achieving Each Level, 2011

First Foreign Language
Beginner
Second Foreign Language

Basic
Advanced Basic
Malta (EN)
Sweden (EN)
Estonia (EN)
Netherlands (EN)
Slovenia (EN)
Greece (EN)
ESLC average
Croatia (EN)
Bulgaria (EN)
Belgium DE (FR)
Portugal (EN)
Spain (EN)
Belgium FR (EN)
Poland (EN)
Belgium (NL)
France (EN)
UK ENG (FR)
Independent
Advanced Independent
Belgium NL (EN)
Belgium DE (EN)
Malta (IT)
Netherlands (DE)
Slovenia (DE)
ESLC average
Belgium FR (DE)
Spain (FR)
Estonia (DE)
Bulgaria (DE)
Greece (FR)
Croatia (DE)
Portugal (FR)
France (ES)
Poland (DE)
Sweden (ES)
UK ENG (DE)
0%
20%
40%
60%
80%
100%
0%
20%
40%
60%
80%
100%
Source: First European Survey on Language Competences: Final Report

Notes:
(1)
A sample of 54,000 pupils at the end of ISCED 2 has been used
(2)
There are some country discrepancies in the data
53
School Assessment Criteria & Evaluation

Elements of the Education System
Subject to Evaluation (ISCED 1-3),
2010/2011
Existence of Standard Criteria for the

External Evaluation of Schools
(ISCED 1-3), 2010/11
Local authority
evaluation
Standard
criteria
School and
teacher evaluation
No standard
criteria
Mainly teacher
evaluation
No external
evaluation
Mainly school
evaluation
No data
Publication of Findings from the External

Evaluation (ISCED 1-3), 2010/11
Use of Student Performance Data in the

External Evaluation (ISCED 1-3), 2010/11
Routine
publication
Standard
criteria
No routine
publication
No standard
criteria
No external
evaluation
No external
evaluation
Local
autonomy
No data
Key Points
In most countries, schools are subject
to external evaluation, while internal
evaluation is performed by school staff.
Internal school evaluation can be
mandatory or even compulsory in
some geographies
School evaluation may focus on a
number of areas including: the quality
of educational or administrative
processes adopted by schools;
compliance with standards or
regulations; and, outcomes of the
teaching and learning process
Where external valuation is the
common occurrence, student
performance is the key proxy for
school evaluation
No data
Source: Eurydice
54
Public Funding Dominates Private Funding

Proportions of Educational Expenditure from Public and Private Sources (ISCED 0-6)
in 2008
Public funding
13%
13%
8%
15%
5%
6%
n/a
14%
6%
20%
13%
10%
9%
17%
10%
10%
n/a
n/a
5%
16%
9%
13%
10%
0%
12%
18%
3%
3%
31%
9%
n/a
2%
10%
8%
0%
Private funding
40%
0%
Key Points
The majority of government
expenditure is concentrated at the
lower secondary to post-secondary
non-tertiary education level
Private funding of education remains
marginal (mean of 13.8% across
Europe) with the main driver being the
EU member states policy for the
funding of education-oriented preprimary schooling and tertiary
education
20%
40%
60%
80%
EU
BE
BG
CZ
DK
DE
EE
IE
EL
ES
FR
IT
CY
LV
LT
LU
HU
MT
NL
AT
PL
PT
RO
SI
SK
FI
SE
UK
IS
LI
NO
CH
HR
TR
100%
Total Public Expenditure on Education by Education Level (ISCED 0 to 6) as a

Percentage of GDP, 2008
ISCED 0
ISCED 1
ISCED 2-4
ISCED 5-6
ISCED 0-6
10
8
6
7
5
5 5
5 5
4
7
6
7
7
6
4
4 5
2
n/a
n/a
n/a
EU27
UK
Turkey
Switzerland
Sweden
Spain
Slovenia
Slovakia
Romania
Portugal
Poland
Norway
Netherlands
Malta
Luxembourg
Lithuania
Liechtenstein
Latvia
Italy
Ireland
Iceland
Hungary
Greece
Germany
France
Finland
Estonia
Denmark
Czech
Cyprus
Croatia
Bulgaria
Belgium
Austria
Source: Eurostat, UOE, National Account Statistics
55
Decentralised Decision-Making For Operational Resources

Location of Decision-Making Powers to Determine the Overall Amount of Public
Expenditure on Specific Resources for Schools (ISCED 1-3), 2010/11
Centrally/Top
Local y
No data
Teaching
Non-Teaching Staff
Key Points
Expenditure on staff represents more
than 70 % of total annual education
expenditure
Current expenditure represents more

than 84 % of total expenditure by
public institutions in all
countries
Capital Expenditure/Immovables and

Movables
Current or Operational Expenditure
From the evidence available, it is clear

that there is a tendency for decisions
relating to the financing of teaching
staff to be taken by central
governments or by the regional body
with full responsibility for education,
while decisions relating to the
financing of operational resources tend
to be shared between head teachers
and local authorities
56
School Autonomy is Widespread in Europe

Decision-Making Autonomy for Teaching and Learning Resources across European
Common
compulsory core
curriculum
Curriculum content
of optional subjects
Choosing teaching
methods
Choosing textbooks
Pupil grouping for

compulsory learning
Setting internal
pupil assessment
criteria
BE (FR) a
BE (FR) b
BE (DE) a
BE (DE) b
BE (NL)
BG
CZ
DK
DE
EE
IE
EL
ES
FR
IT
CY
LV
LT
LU
HU
MT
NL
AT
PL
PT
RO
SI
SK
FI
SE
UK-1
UK-2
UK-3
IS
LI
NO
HR
TR
Key
Full autonomy
Limited autonomy
No autonomy
Not applicable
Local authority decision-making
Key Points
Schools have least autonomy in areas
directly related to the principle goals of
their education system, where central
authorities define a content-based or
goal-oriented core curriculum that all
teachers should follow
Teachers across Europe are highly
involved in choosing teaching
methods, setting internal assessment
criteria and choosing content
The operational expenditure on

content and teacher tools (including
LMSs) are often made by the school
head whereby the school governing
body is likely to be involved with
matters concerning optional core
curriculum content or grouping pupils
for compulsory learning
a)
b)
Schools for which the Community is directly responsible and a minister is the responsible authority
Schools in the public and private grant-aided sector. In the grant-aided sector, the responsible authority is
deemed the school-based management body
UK-1 England and Wales
UK-2 Northern Ireland
UK-3 Scotland
Source: Eurydice, Parthenon U.S. Teacher Survey (Dec2012)
57

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IBIS Capital | e-Learning

IBIS Capital | A European Perspective on e-Learning

IBIS Capital | A European Perspective on e-Learning

IBIS Capital | A European Perspective on e-Learning

The European e-Learning Market

Active European e-Learning Corporates

The European Education Market

The European Corporate Learning Market

General European Investment Trends

The European EdTech 20

IBIS Capital | A European Perspective on e-Learning

IBIS Capital | A European Perspective on e-Learning

The European eLearning Market

IBIS Capital | A European Perspective on e-Learning

The European e-Learning Overview

Significant Market Size

A Highly Fragmented Market

Limited Invested Capital to Date

Of the $4.1tn trillion spent on education and

The European e-Learning market is a highly

Although the relative difference in the size of

IBIS Capital | A European Perspective on e-Learning

Split Between Corporate & Academic

European M&A still Nascent

IBIS Capitals View on Europe

The spend on academic education and learning

The level of activity within e-Learning M&A in

The evidence of increased investment in Europe in

The EdTech Hype Cycle

Digital Preservation of Research Data

Web-based Office Productivity Suites

Personal Learning Networks

Tin Can Initiative

Cloud email for staff and faculty

Game Consoles as Media Hubs

Lecture Capture and Retrieval Tools

IBIS Capital | A European Perspective on e-Learning

Global Education and Corporate Learning Expenditure

Similar to other regions, K-12

2011A Global Corporate Learning Expenditure by Geography

IBIS Capital | A European Perspective on e-Learning

From a global perspective, Europes

In 2011, global education expenditure

Growing Education Market Driven by Growth of e-Learning

Test preparation / tutoring market

Global language learning

Global education expenditure market is

e-Learning expenditure projected to

Social learning / communities

K-12 CAGR of 34.0%

e-Learning Expenditure Forecast by Subsectors

IBIS Capital | A European Perspective on e-Learning

Government Expenditure is Vital to Education

Targeted government spending is an

State of the labour market impacts

IBIS Capital | A European Perspective on e-Learning

Source: Eurostat, UOE, World bank

Investment Trends: Academic and Corporate e-Learning

Direct Investments in the Corporate e-Learning Market

Investment trends in corporate eLearning are correlate to the general

Since 1999, direct investments in the

IBIS Capital | A European Perspective on e-Learning

Source: Ambient Insight