Target Information

ELG E-Learning Group GmbH (ELG) is a prominent provider of digital education tailored for working professionals, offering flexible and high-quality learning experiences. Headquartered in Vienna, ELG has established itself as a leader in the online education sector, serving approximately 15,000 educational clients globally and 10,000 MBA students within the DACH region (Germany, Austria, Switzerland). Recognized as the most popular distance learning provider in this region, ELG boasts a remarkable recommendation rate of 96%, reflecting its commitment to quality education.

The company operates within the rapidly expanding online university education market. With customer preferences shifting towards digital, flexible learning solutions, ELG has continuously adapted its offerings to meet the evolving needs of adult learners. The institution provides an extensive range of programs across various fields, including business, management, law, IT, and health, highlighting its innovative approach to education.

Industry Overview

The online education industry, particularly in Austria and the broader DACH region, has been experiencing robust growth driven by technological advancements and changing demographic trends. Many professionals are seeking education that accommodates their busy lifestyles, which increases the demand for accessible and high-quality online learning solutions. This trend aligns with the broader societal shift towards digital transformation across various industries.

In the DACH region specifically, the appetite for online education has surged among working professionals, with many institutions facilitating modular and highly customizable learning paths. ELG has positioned itself at the forefront of this trend, focusing on both quality and accessibility as key differentiators in a competitive market. The undeniable push for lifelong learning due to rapid technological changes further fuels this evolution.

The market also reflects significant growth opportunities in specialized areas such as artificial intelligence and sustainability, where demand for relevant qualifications is increasing. Institutions like ELG are strategically addressing these megatrends by offering tailored programs that prepare students for future skills and job market demands.

Key government and private initiatives aimed at promoting digital education further support the expansion of this sector. Investments and partnerships are becoming more prevalent as stakeholders recognize the vital role online education plays in workforce development and economic resilience.

Rationale Behind the Deal

Round2 Capital’s investment in E-Learning Group is focused on facilitating the company’s growth strategy, especially in expanding their core offerings and launching innovative programs in high-demand areas like AI and sustainability. The 7-figure revenue-based financing model provides ELG with the necessary capital while allowing existing shareholders to maintain control. This approach aligns with ELG's vision to capitalize on its market leadership while exploring new growth channels.

The timing of this investment is crucial, as ELG aims to reinforce its position in a competitive market by enhancing its digital education offerings. Round2 Capital’s support will enable ELG to launch new programs and penetrate new international markets decisively.

Investor Information

Round2 Capital is a dynamic pan-European growth investment firm based in London and Vienna, managing EUR 180 million in assets. Founded in 2017, it specializes in revenue-based finance, empowering European scale-ups and businesses with digital and sustainable business models. Since inception, Round2 Capital has championed technology-driven investments, enhancing growth trajectories for companies across various sectors.

The firm’s backing by the European Investment Fund (EIF) reinforces its strategic position as a facilitator of growth for technology companies in the European Union. Having invested in 37 software and technology scale-ups across nine different jurisdictions, Round2 is well-equipped to support ELG’s objectives and future expansion plans.

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From an investment standpoint, Round2 Capital’s financing of E-Learning Group presents a promising opportunity. The growing market for online education and the company’s established reputation position ELG favorably to leverage this capital towards expanding its offerings and entering new markets. The emphasis on revenue-based financing provides a flexible structure that could lead to sustainable growth without diluting existing shareholders' equity.

Moreover, ELG's proactive identification of trends in digital skills and sustainable education sets the foundation for a solid return on investment. As demand for these specializations increases, particularly in the corporate sector, the potential for enhanced market share seems considerable.

The strategic alignment between Round2 Capital and ELG also points towards a strong partnership, likely yielding long-term benefits. The combination of Round2’s capital and ELG’s market leadership could cultivate innovation and growth across diverse educational platforms.

Overall, this investment appears to be well-timed and strategically aligned with the current trends in education, technological development, and global market expansion, reflecting a sound investment opportunity for Round2 Capital.

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