View of EdTech Funding in the US and Europe

Two reports and a blog post worth reading

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Like many EdTech analysts, I follow venture capital activity in the sector. I do this in part because it provides a window on one of the key sources of innovation in EdTech (new products and approaches being developed), but also because of what it tells us about the forces shaping EdTech. I regularly check on the portfolios of some of the major EdTech focused or interested VC firms, but overall summary reports provide a useful overview of some of the trends in the EdTech. Over the last couple of months, a few reports (and a blog post) have been released which give some great insight into activity in the space and where EdTech is headed.

At the end of January, the EU funded the EmpowerED project released a report on the State of Play of EdTech & the European EdTech Ecosystem (just one of a set of reports on EdTech investment in the EU). Also at the end of January, Brighteye Ventures released its annual report on European EdTech funding, and Tony Wan from Reach Capital published a post reviewing US funding in the US.

The story (so far)

There are some important differences, but the story these articles tell is similar in some core dimensions. EdTech funding is down from the heights of 2021-2022, but (like online learning in the US) it has settled at a level above where it was in 2019. There are also some potentially promising signs for the future, but there are also some sources for concern.

VC funding in general and with an EdTech focus

It is worth reminding ourselves of what VC funding in general looks like. From Tony Wan’s post we see the overall pattern, slow but mostly steady growth up to 2020, then a giant surge in 2021 and 2022, followed by a substantial decline in 2023.

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