As student populations grow, so too does the need for new teaching styles and strategies—especially in light of the rise of remote learning in recent years. Founders and entrepreneurs have taken note, and a variety of education tech startups have emerged to address those needs. In 2020, the edtech market represented a $227 billion opportunity and is projected to continue growing as educational spaces–from early education to professional development—further embrace new technology.
What is education tech?
Education technology, or edtech, is an industry vertical that encompasses a wide range of software and hardware designed to facilitate teaching and learning processes. Represented within the edtech industry are tools and resources for teachers, students and the families of students, which often incorporate elements from other spaces such as AI and machine learning. At present, the most characteristic tool in education tech is app-based edtech services.
Edtech quick stats from PitchBook
11,390
Companies
4,055
Exits
$9.93
Median post-valuation
23,745
Deals
$7.75B
Largest deal
15,568
Investors
$262.58B
Capital invested
*According to PitchBook as of November 17, 2021; data is subject to change frequently
Top 6 most active investors in edtech
Y Combinator
- Edtech deal count: 185
- AUM: $772.80M
- Dry powder: $658.19M
Y Combinator is a California-based accelerator firm specializing in B2B software, financial technology, education and healthcare. Since 2016, it has carried out much of its edtech incubator activity through its affiliate, Imagine K12.
500 Startups
- Edtech deal count: 174
- AUM: $1.80B
- Dry powder: $247.24M
500 Startups is a VC and accelerator operating out of San Francisco, California that prioritizes minority seed, early-stage and later-stage investments. Its main industries are IT and B2C, with a preference for areas such as IoT, SaaS, e-commerce and consumer services.
National Science Foundation
- Edtech deal count: 146
- Active portfolio: 2,203
- Median valuation: $6.11M
Founded in 1950, the National Science Foundation is a Virginia-based US government organization. Through the America’s Seed Fund program, it provides grants and seed funding to startups and small businesses, with its primary areas of focus being IT, healthcare and B2B.
Techstars
- Edtech deal count: 135
- AUM: $742.00M
- Dry powder: $214.54M
Headquartered in Boulder, Colorado, Techstars is an accelerator offering seed stage funding and mentorship to businesses in the US and UK. It leverages a variety of experienced community members and investors to provide startups with both funds and educational resources.
Learn Capital
- Edtech deal count: 117
- AUM: $600.00M
- Dry powder: $150.44M
Learn Capital is an edtech-focused VC firm operating in San Mateo, California. Since its inception in 2008, its main areas of interest include learning platforms, services and content.
Village Capital
- Edtech deal count: 102
- AUM: $17.70M
- Dry powder: $3.64M
Village Capital is an incubator/accelerator founded in 2009 and headquartered in Washington D.C. Its main investment targets are startups relating to sustainability, future of work and financial health, with a preference for IT.
Village Capital
Find out how Village Capital uses PitchBook to find new startups and create a diverse portfolio.Read case study
More on edtech
Explore the new intersection of edtech and IPOs
Read our blog post on the unicorn class of 2021
See how the pandemic has impacted edtech exits
Learn about the effects on new and established edtech businesses in our recent news article
Follow the emergence of edtech on the NYSE
Check out our news coverage of Coursera’s NYSE debut
Learn how recent trends are influencing edtech valuations
Follow the success of the Byju’s online learning platform in our blog post
Dive deeper into edtech IPOs
Read our N&A article on Udemy’s $4.5 billion IPO
Edtech is one of dozens of industry verticals tracked by PitchBook. Request a free trial to explore them all. Already a PitchBook customer? Log in.