Four-S Edutrack 3rd July - 23rd July, 2011
55% VCs & PE firms to invest र45bn in education by 2014: ASSOCHAM
Around 55% of venture capitalists (VCs) and private equity (PE) firms in India consider education as an attractive sector and plan to make an investment of र45bn in next three years according to a survey conducted by ASSOCHAM. ASSOCHAM interacted with 1,000 PE and VC firms during May and June’2011 to evaluate their interest in education sector from investment point of view.
As many as 550 respondents said they reckon education is a profitable sector with a potential to attract huge VC funding adding that PEs and VCs can play pivotal role in expanding education and support the government in meeting its obligation under the Right to Education Act which provides for free and compulsory education for children between 6 and 14 years of age. Most of the respondents were jittery about the multiple entity structure followed by various industry players like property company, management company and trust and it is too complicated for investors to control in terms of rights. The respondents also highlighted various policy constraints like lack of clarity on current and future education policy, lack of clarity on land rules where schools are built, licensing higher education capacity, treating education as a non-profit activity, difference in education rules and regulations across states.
Around 55% of venture capitalists (VCs) and private equity (PE) firms in India consider education as an attractive sector and plan to make an investment of र45bn in next three years according to a survey conducted by ASSOCHAM. ASSOCHAM interacted with 1,000 PE and VC firms during May and June’2011 to evaluate their interest in education sector from investment point of view.
As many as 550 respondents said they reckon education is a profitable sector with a potential to attract huge VC funding adding that PEs and VCs can play pivotal role in expanding education and support the government in meeting its obligation under the Right to Education Act which provides for free and compulsory education for children between 6 and 14 years of age. Most of the respondents were jittery about the multiple entity structure followed by various industry players like property company, management company and trust and it is too complicated for investors to control in terms of rights. The respondents also highlighted various policy constraints like lack of clarity on current and future education policy, lack of clarity on land rules where schools are built, licensing higher education capacity, treating education as a non-profit activity, difference in education rules and regulations across states.
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