GoGuardian, which builds software used in over 10K US schools and by over 22M students, raises $200M from Tiger Global at a $1B+ valuation (Mark Bergen/Bloomberg)

10k us 22m 200m tiger 1b bergenbloomberg

A second indication of private equity’s wager that the rise in classroom technology would survive the epidemic is Tiger Global Management’s $200 million investment in GoGuardian, a firm that sells software to K–12 schools.

GoGuardian, which is supported by Sumeru Equity Partners LP, is now valued at more than $1 billion thanks to the investment. The Los Angeles-based firm was founded in 2014, and its first product was a Chrome extension that allowed schools to monitor and restrict their students’ internet use. GoGuardian experienced a surge in demand during the epidemic, similar to other online education businesses, as schools tried to implement virtual learning.

The firm claims that since last summer, sales have increased by almost 150%. Although declining to disclose overall sales or profitability, Chief Executive Officer Advait Shinde said that it had been “cash flow positive since day one.”

The business claimed that 10,000 U.S. schools and 22 million students from kindergarten through 12th grade utilise their software. 23 of the 25 largest U.S. districts are among those clients, up from only 11 before the outbreak. GoGuardian signed statewide agreements with West Virginia and Delaware this year, and it wants to sign more.

Shinde stated that even once districts reopen in person, the edtech spending boom from remote learning will continue. In an interview, he stated that “teachers who were previously on the fence will now continue utilising these tools.” There is a constant increase in the usage of technology.

The digital K–12 education sector has a lot of promise, by most standards. Schools have been purchasing millions of new iPads and Chromebooks for kids since last year. According to research firm HolonIQ, worldwide edtech investment will increase to $404 billion by 2025, which represents less than 6% of total education expenses.

Tiger Global has made significant investments in online education in China, despite the fact that the industry there has suffered from restrictions. Tiger Global now holds a minority stake in GoGuardian, which now only operates in the United States but wants to become international after the investment, according to Shinde.