UK-based educational publisher and learning materials producer Pearson committed $50m of capital to a corporate venture capital vehicle known as Pearson Ventures on Wednesday.
Pearson has traditionally focused its business on textbooks, but as learning institutions have technologically evolved, it has moved further into apps and other digital resources.
Pearson Ventures will function as the successor to Pearson’s Affordable Learning Fund (PALF), which has invested $20m since it was launched in 2012, building a portfolio that includes Karadi Path, Avanti and Experifun, though it has only generated $7m of returns so far.
The unit is expected to invest the cash over the next three years, targeting companies developing more innovative educational technology than those backed by PALF, pursuing aims such as increasing adult learning, employability and advanced assessment.
More specifically, Pearson Ventures will seek out startups utilising advanced technologies such as artificial intelligence, mobile education, virtual and augmented reality, investing at series A and B stage, in regions where the corporate already has a notable presence.
Jonathan Chocqueel-Mangan, Pearson’s chief strategy officer, said in a blog post announcing the fund: “Pearson Ventures will invest in companies building new market opportunities using innovative business models, future technologies and new educational experiences.
“While Pearson Ventures will pursue competitive financial returns, equally important is its ability to collect shareable insights and drive organisational learning to help future-proof the company. As a result, we will be doing things a bit differently than a typical venture fund.”
