Lessons for investors in China's red-hot education sector

An online education unicorn's $350m funding round underscores the sector's potential. But with valuations stretched and profits scarce, investors need to do their homework.

China's growing middle class will stop at nothing to give its children the best possible start in life and education is the key.

Increasingly, this doesn't just mean finding the right public school or even shelling out big money for an elite international education. A range of online providers are seeing the possibility in offering lessons, tutoring and other educational resources online.

Underlining this point, online education platform Zuoyebang said on Wednesday it had closed its $350 million series D funding round, led by New York-based tech-focused hedge fund Coatue Management.

The company, which provides...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222