EdTech VC reached ∼$2.4B for 2024, representing the lowest level of investment in a decade.

2024 saw 300 M&A transactions, 5 IPOs and a handful of take privates with PE actively pursuing segment leaders.

Education Intelligence Unit

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January 15, 2025

2024 saw $2.4B of EdTech Venture Capital, representing the lowest level of investment since 2015. The hype of 2021 is well and truly over, with investors seeking fundamentals over 'fluff’.

2024 marked a significant shift in the EdTech investment landscape, transitioning from the growth of previous years to a more measured approach. The pandemic-fueled boom has subsided, and investors are now prioritizing sustainability and profitability over rapid expansion.

Figure 1. Global EdTech VC Funding. 2010 - 2024

Venture capital investment in EdTech plummeted to its lowest level since 2014, reaching $2.4 billion, representing a dramatic 89% decline from the 2021 peak, with the proportion of early-stage deals increased as larger round transactions plummeted. Notable exceptions included PhysicsWallah's $210 million round and significant investments in Eruditus, Zum, and SpringHealth. Expect the EdTech funding to continue focusing on scalable, tech-driven solutions, particularly in workforce training, and greater interest in the potential of AI to help solve core challenges in education. Growth capital may return in 2025, but venture investors are holding back large sums, waiting to see outcomes of their pandemic-era bets.

2025 Global Education Outlook

180 pages of data, insights and analysis on the new education economy

North America leads on deal value, Europe close second on volume

North America dominated in funding value, capturing just over half of the total global VC investment value, in just over a third of deal volume. The European landscape highlights many transactions (~30% of global total) but smaller funding rounds. South Asia captured 20% of global EdTech venture capital volume in 2024, with a small number of large deals, with funding value doubling from the prior year, mainly driven by mega-rounds like PhysicsWallah ($210M) and Eruditus’ ($150M).

In terms of sector focus, over a third of venture funding globally went into K-12 education, particularly in K-12 support services, highlights growing demand for solutions that enhance both learning and logistical operations within K-12 systems. Workforce training and development secured another third of the total, driven by upskilling and professional language learning platforms. In post-secondary education, financing solutions and global learning platforms took most of the funding.

Figure 2. 2024 Education VC Funding Count, by Sector, by Region

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M&A, PE and Take-Privates

The M&A landscape remained robust in 2024, with private equity firms leading the charge. EdTech saw approximately 342 transactions totalling ~$28B in disclosed value. Highlights included Neuberger Berman’s $14.5B purchase of Nord Anglia and KKR’s $4.8B acquisition of Instructure, underscoring the rising demand for scalable learning management systems (LMS) to support long-term digital integration across all education sectors. Bain Capital’s $5.6B acquisition of PowerSchool further cemented its role as a key player in K-12 management systems, and in Higher Education, Element451, an AI-powered student engagement solution, raised $175M from PE firm PSG. Looking ahead, expect digital infrastructure to continue to attract funding as AI-driven upgrades and data-centric strategies remain important to the sector.

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