Coursera IPO: Prices at Top of Range - EdTech Valuation Boost

Coursera's Public Debut and Valuation

Coursera, a prominent edtech company valued as a unicorn, commenced trading as a public entity today. The initial public offering (IPO) was priced at $33 per share last night.

Based on the total number of shares issued, the company's valuation is calculated at $4.30 billion. This figure increases to $4.38 billion if the underwriters fully exercise their option to purchase additional shares at the offering price.

Valuation Increase Since Last Private Funding

Considering a more comprehensive share count, Coursera’s valuation surpasses the $5 billion threshold.

The last private valuation for Coursera was $2.57 billion, achieved after a $130 million funding round in mid-2020, according to PitchBook data. This represents approximately a 67% increase in valuation compared to that previous private figure.

If underwriters purchase their allotted shares, the valuation gain exceeds 70%. A diluted valuation reveals that Coursera has effectively doubled its final private price in under a year.

Implications for the Edtech Market

For investors in the edtech sector, Coursera’s IPO provides a key indicator of public market sentiment regarding potential exit values. TechCrunch suggests this is a positive development.

The substantial amount of private capital invested in edtech startups – totaling billions of dollars – could see further gains if Coursera performs well in the market.

Conversely, a poor trading performance could negatively impact investor confidence.

Upcoming Edtech IPOs

Coursera is not the only edtech company planning a public debut. Nerdy, for instance, has announced plans to go public through a special-purpose acquisition company (SPAC).

Private investors, having collectively invested over $10 billion in edtech companies globally in 2020, are cautiously optimistic about the volume of edtech exits this year.

Expert Opinions on the IPO

GSV managing partner Deborah Quazzo stated in a TechCrunch survey that the Coursera IPO pricing indicates a successful high-value exit.

Extending this thought, a strong first-day trading performance for Coursera could stimulate increased SPAC interest in taking other edtech startups public.

This could solidify valuations for currently illiquid edtech companies and facilitate the return of invested capital within the technology sector.

Future Outlook

Owl Ventures’ managing director Ian Chiu noted in the same survey that the number of potential IPO candidates within the edtech sector is continually expanding.

Analysts anticipate further developments as Coursera begins trading, and expressed interest in analyzing future edtech IPO filings.