An Opportunity to Play the Global $90B EdTech Market1
With expected ~20% growth per year through 2028, (CSE:PUSH)(OTC:PUSOF)(FSE:713) Pushfor Investment’s foray into education technology via Socrates represents an attractive value proposition for investors2
- The educational sector is undergoing a digital revolution, and the EdTech industry is thriving as conventional teaching makes a shift to accommodate for a changing scholastic landscape.
- The Global education technology market size is set to register 19.9% CAGR through 2027, with an enormous amount of untapped upside.
- The already growing demand for online education has been further propelled by the global COVID-19 pandemic, as both government and private educational institutions from elementary to university level attempt to transition into the online EdTech model.
- Companies such as Stride, Inc. (NYSE: LRN) are seeing a surge of enrollment, and investors are currently on the lookout for the “new kid on the block” to streamline EdTech experience with an A+ Program.
- The Investor Scene research team has uncovered an EdTech stock with all the right “answers” to the market’s “test”... Who will be the sector’s next big winner?
The global education technology market size was valued at $89.49 billion in 2020 and is expected to witness a compound annual growth rate (CAGR) of 19.9% from 2021 to 2028. Digital technology can improve access to education. Learners are increasingly shifting toward eBooks that can be accessed online from anywhere across the globe. Digital content is comparatively easy to generate than printed content, which tends to incur higher production costs. Moreover, digital books are available in different languages and can be easily translated and retrieved by a wider user base. In addition, learners, especially with physical disabilities, can listen to the educational content in an audio format to improve their vocabulary and encourage better interpretive reading.3
Education technology (EdTech) solutions are expected to evolve in line with the advances in the latest technologies, such as the Internet of Things (IoT), Artificial Intelligence (AI), Augmented Reality (AR), and Virtual Reality (VR), and contribute significantly to the market growth
As the COVID pandemic has forced traditional in-person elementary, middle, and high schools, as well as colleges to reinvent themselves for remote learning, it has also provided a huge opportunity to EdTech companies — funding to EdTech startups so far in 2020 has already reached record highs at more than $8.9B.4
Even before the pandemic, companies have been targeting the traditional university — for example, coding bootcamps like Lambda School aim to replace the typical computer science education for a fraction of the cost, while startups like BibliU provide access to textbooks and other academic literature online.
$100M+ mega-round deals drove funding in 2020
EdTech investment activity is on track for a strong year, driven by several $100M+ mega-rounds. Amid a widespread shift to remote learning due to Covid-19, startups offering mobile-based tools and more immersive learning experiences through augmented/virtual reality are gaining traction.5
Pushfor Investment’s acquisition of Socrates indicates the company’s commitment to riding this trend and taking market share in this burgeoning sector.
Socrates is a Las-Vegas based Education Technology company that brings skills practice to mastery, the focus of play, and the transparency of growth into a simple to use application.
The Socrates platform supports remote learning when school is closed by personalizing the learning experience and adjusting in real-time to the needs of each student.
“Socrates — a new site focused on differentiated instruction through game-based learning that adjusts to the student as they progress” — Tech & Learning6
“Our partnership with Socrates allows us to continue expanding our growing selection of programs for every girl in Southern Nevada”
— Kimberly Trueba (CEO Girl Scouts of Nevada)
“With their state-of-the-art AI technology and fun gamification to encourage students to keep learning, Socrates is the ideal partner to allow Girl Scouts to learn this important topic from the comfort and safety of their homes.”
Teachers have a command center that allows them to assign specific topics for kids to practice online, as well as offline through worksheets, and allows them to monitor and assess progress. It also helps teachers and parents identify where students need help, and groups students for remediation. It runs on any device without any installation, and we can have a school up and running in one day.
Award-Winning Education Technology
Already in 2021, the Company was named for Top Learning Tools when School is Closed from Coronavirus and top 10 tech companies in Las Vegas. In addition to these awards, the company has attained:
- A National Science Foundation Grant
- Fast Company’s recipient of World Changing Ideas Award
- Corporate Vision Magazine’s Best AI-Enhanced Tutoring Platform
- Practical Homeschooling winner of the i-learn awards for both 2019 and 2020
- Tech & Learning’s Top 25 Sites for STEM
(CSE:PUSH)(OTC:PUSOF)(FSE:713) Pushfor Investments Inc. is a North American-based investment company. Pushfor Investments Inc is a diversified multi-industry investment company that engages in technology ventures and software development activities in Canada and the United States. We combine diverse leading-edge technologies to build and monetize cross-platform investment vehicles for our shareholders.
Pushfor Investments Inc. operates as a diversified multi-industry investment company. The company changed its name to Pushfor Investments Inc. in October 2018. Pushfor Investments Inc. was incorporated in 2007 and is headquartered in Surrey, Canada.
Pushfor Investment Brings together the industry specialists and investment expertise to accelerate the growth of exceptional companies.
Recent Management Changes
Mr. Michael Noonan became the Company’s CEO and CFO of the Company effective April 22. Mr. Tajinder Johal resigned from the position of director, CEO and interim CFO of the Company 2021 at the same date. Mr. Kyle Lucas is the new CTO.
Mr. Noonan has wide-ranging capability in corporate governance, corporate finance, and investor relations.
The Company has appointed Mr. Michel Lebeuf, Mr. Kyle Lucas, and Mr. Michael Noonan to the Board of Directors on March 25, 2021.
Mr. Lebeuf is a member of the Quebec and Canadian Bar Association. He has extensive experience in corporate and regulatory compliance, securities laws, corporate finance and in merger and acquisition negotiations.
Mr. Lucas brings over 35 years of technical and management experience to the Company. He has held positions in all aspects of software development.
The competitive landscape for investment companies is intense.
The Covid-19 pandemic was the global story for 2020, but how investment companies like Pushfor recover from the pandemic and thrive in a post–COVID-19 world is expected to be the story for the investment management industry for 2021. Industry impact from COVID-19 varied widely, with investment management as a whole sustaining less damage than some other sectors of the economy. Revenues for investment management firms remained largely intact, but the people, the operations, and the technology used by investment managers were impacted. At the same time, market volatility and price movement dramatically accelerated at the industry sector and asset class levels.
The year 2020 was turbulent for private and public markets, as it was for much of the world. Private equity (PE) continued to perform well, outpacing other private markets asset classes and most measures of comparable public market performance. The strength and speed of the rebound suggest resilience and continued momentum as investors increasingly look to private markets for higher potential returns in a sustained low-yield environment.
Rise in SPACs as an Investment Vehicle
Another form of permanent capital, special-purpose acquisition companies (SPACs), boomed in 2020. Enthusiasm for the tech, healthcare, and clean-energy sectors propelled a huge surge of SPAC deals. Private markets firms dove in, both as deal sponsors and as sellers. SPAC activity has continued into 2021, as many investors remain optimistic that this third wave of SPACs will prove more durable than those in prior market cycles.
The rise in SPACs offers investors in Pushfor a safety valve as the company’s investments in diverse and multi-purpose industries like EdTech provides a natural acquisition target for investment companies to aggregate capital in the form of a SPAC. So whether Pushfor executes on its strategy to grow its share price or gets bought out at a premium to book value, investors in Pushfor win either way.
|Company||Symbol||Book Equity||Market Cap ($M)||P/E Multiple|
|Brookfield Asset Management||BAM||$122,642||$89,321||0.7x|
|Alaris Equity Partners||ADUN||605||838||1.4x|
|Senvest Capital Inc.||SEC||1,146||958||0.8x|
|Market Valuation ($M)|
|PUSH 2022 Projected Book Equity||$15.00|
|Current PUSH Valuation||$12.5|
(CSE:PUSH)(OTC:PUSOF)(FSE:713) Pushfor Investments Inc. presents a rare occasion for the growth-focused investor to realize investment returns before the company executes on its new business focus in EdTech through its acquisition of Socrates.
Furthermore, with most SPACs going public at valuations greater than 1.0x book value, a natural exit for Pushfor investors could be a public merger. This opportunity supports the investment thesis for growth-oriented PUSH investors.
Investors who make the right moves quickly stand to make fortunes.
The disposal of unrelated corporate subsidiaries has resulted in lower debt obligations for (CSE:PUSH)(OTC:PUSOF)(FSE:713). In addition, the company’s financing firepower has grown in recent years, allowing the company to make big bets in attractive industries.
Pushfor Investments has recently strengthened its management team, moved into a wide-open green space in Education Technology, and right-sized its balance sheet. The combination of these recent moves has not yet trigged the lift in share price that (CSE:PUSH)(OTC:PUSOF)(FSE:713) deserves.
What to do now…
We recommend this investment for investors who value technology investment management conglomerates. This opportunity provides investors a natural hedge against inflation, while also giving investment portfolios the deserved equity upside and diversification that investors seek in order to strengthen their risk-to-return ratios.
Begin your diligence by perusing the company’s financial documents on www.sedar.com. Get to know the education technology space. COVID-19’s impact is well underway, and with the combination of Socrates and Pushfor Investments, investors stand to benefit.
For up-to-the-minute news and to access to Pushfor Investments Ltd.