Despite the overall downturn, some edtech companies are still securing good-sized funding rounds. Notably, AI-enabled edtech tools and platforms addressing staffing shortages in K-12 education are attracting investment. For instance, GoStudent, an online tutoring tools and services provider, recently raised $95 million, while Swing Education, a platform matching substitute teachers with hard-to-fill positions, secured $38 million in a Series C round.
Key takeaways:
- So far in 2023, no education technology company has raised a venture round of $100 million or more, and overall funding to the education sector has dropped nearly two-thirds from the same period in 2022.
- High-profile disappointments in the edtech sector, such as the valuation of Indian education giant Byju’s being slashed to $5.1 billion and the bankruptcy of Bitwise Industries, have potentially exacerbated the funding decline.
- Despite the downturn, some good-sized funding rounds are still occurring in the education space, particularly for AI-enabled edtech tools and platforms that help address staffing shortages in K-12 education.
- While education and edtech venture investment is unlikely to dry up entirely due to the size and growth of the global education market, many startup investors appear to be taking a break from large financings and fast-paced dealmaking.