Here’s what you need to know today in startup and venture news, updated by the Crunchbase News staff throughout the day to keep you in the know.
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China’s ed-tech, delivery regulatory changes hit returns for VC-backed companies
China’s overhaul of the private tutoring industry looks poised to deal a sweeping blow to returns in the space for a slew of venture-backed companies.
The Chinese government will ban companies that teach school curriculum from making profits. The decision has already resulted in steep valuation drops for public, venture-backed companies in the space, including TAL Education and New Oriental Education & Technology. Venture and private equity firms, including SoftBank, Sequoia Capital, and BlackRock, are among numerous heavy institutional investors in the space, that could collectively see billions wiped out.
Chinese regulators also extended protections for food delivery workers, in a move that sent shares of major delivery platforms lower. Under the reforms, food delivery platforms in China will reportedly be required to guarantee riders’ income above minimum pay, insurance and a relaxation in deadlines for deliveries, under reforms announced on Monday by China’s market regulator.
BYJU’s to buy Great Learning for $600M
Founded in 2013, Great Learning focuses on professional and higher education, with coursework in cybersecurity, machine learning, digital marketing and an assortment of other areas.
Just last week, BYJU’s announced that it is paying $500 million to acquire Epic, a Silicon Valley-based digital reading platform for kids 12 and under.
— Joanna Glasner
Illustration: Dom Guzman
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