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.