At a Glance
Coursera, a leading online educational platform, has priced its IPO at $33 per share yesterday evening and is now going to be a public company. If its underwriters purchase the shares at its offering price, then its valuation comes to about $4.3 billion or even $4.38 billion using a simple share count. This is a big feat for this EdTech unicorn. With a more diluted share count, the valuation of this EdTech unicorn will go as high as $5 billion. The company was valued at about $2.57 billion in mid-2020 as per the PitchBook data.
It is a great opportunity for all EdTech investors to take the lead and help Coursera determine public market sentiment with the exit value of their investments. Not many people are investing in EdTech startups which is one of the reasons why the amount of private capital at play in EdTech startups is usually very low. However, if Coursera trades well today, there are chances that many potential returns could get hurt with their investments.
So, the billions that are invested in the capital of the firm could lose Coursera the happiness bought by IPO Pricing. Under the lead of Coursera, many other EdTech startups are also aiming at going public. These include the likes of Nerdy. The private investors, who have invested about $10 billion into EdTech companies and startups all over the globe by the year 2020, feel bullish about the EdTech exit volume for this year.
The Coursera pricing is marking the value of a high-value exit as of now, as per the IPO pricing. But what could be the future with this? The first-day trading session of Coursera will determine largely how the SPAC interest rises in taking public more EdTech unicorns and startups. So, this has the potential to lock many valuations for those EdTech unicorns and startups that are currently illiquid.
This can also bring in more valuation and invested capital into that technology sector which is currently undervalued and largely ignored. However, now that the interest in the EdTech industry is rising and the ‘pipeline for potential IPO candidates increasing’, there is a chance that a lot about this industry is revolutionized. However, much can only be said after Coursera trades. So let’s wait until then.