Yuanfudao just blew up the EdTech Unicorn funding charts. Completing a USD $1B Series G in March 2020, Yuanfudao raised the largest amount of capital ever raised in a single round by an education company anywhere in the world.
EdTech claims 14 Unicorns, or startups valued at or over USD $1B. Yuanfudao, a Chinese online homework and tutoring platform, achieved Unicorn status through previous financing rounds, but this time it changed the game almost doubling the previous records set by ByJu’s in India and VIPKid, also based in China, in the form of USD $500M+ rounds. Yuanfudao reports over 400 million users, delivered over 800 million problem practice services for students nationwide, ‘Xiao Yuan Search’ has provided 36 billion homework tutorials, and ‘Little Yuan Corrector’ has over 250 million daily corrections.
We have been tracking the evolution of Unicorn funding for some time and have updated the chart below to show how staggering this latest development is. The chart below lines all Unicorn funding up at time = 0 for their first public financing round. The x-axis shows the months elapsed since that first round in attempt to compare the evolution of funding and different fundraising strategies employed. In 2018 we found four Unicorn funding archetypes. Since that time, what looked like clear patterns, the evolution of funding has not been as clean and predictable.