IBIS Capital and EdtechX Holdings Acquisition Corp. II have recently launched ESG and Impact evaluation approach for edtech investments

EdtechX Holdings Acquisition Corp. II (NASDAQ: EDTXU), an edtech-focused SPAC, stated that it will analyse the ESG credentials of possible acquisition businesses in the edtech market using a groundbreaking methodology.

EdtechX Holdings (EdtechX), a prominent European edtech investment platform, and IBIS Capital, a specialist education technology investment bank, established the patented technique, which is one of the first of its kind in the edtech sector. The methodology looks at seven ESG variables relevant to the edtech sector, including factors like accessibility and cost, educational or training efficacy, ethical selling and marketing methods, customer privacy and data security, and so on.

Kpi within each edtech classification, like the number of students enrolled (including those from underserved geographies and low-income households), course completion rates, and job placement rates, assist investors in accurately assessing the efficacy of ESG initiatives as well as the strengths, weaknesses, and risks of potential investments in the sector.

EdtechX and IBIS Capital anticipate that their complete methodology will aid edtech companies in evaluating their own ESG criteria and effectiveness, as well as the growing number of generalist investors interested in the field. EdtechX Holdings Acquisition Corp. II will be the first SPAC to do this type of due diligence on possible investments, with the goal of drawing impact investors to the edtech sector.

EdtechX has made ESG a priority, launching the 'SPACs for Good' campaign last year. Benjamin Vedrenne-Cloquet and Charles McIntyre, co-founders of SPAC, pledged to donate 4% of their SPAC founders shares to non-profits that support the digitization of education. Other SPAC founders and sponsor teams are encouraged to commit a minimum of 1% of their founders' shares as a grant for the same causes. The campaign's co-founders seek to make it a market norm.

"The Covid-19 pandemic dramatically impacted learning since most educational institutions quickly shifted to a remote or hybrid learning paradigm comprised of a combination of in-person and virtual education," stated Benjamin Vedrenne-Cloquet, CEO and Co-Founder of EdtechX and Partner at IBIS Capital. While difficult to implement, this rapid shift has spurred educational technology improvements, and a hybrid model will certainly be preserved in the future to supplement traditional schooling.