In 2021, financing for edtech businesses in Europe and North America will more than triple
Despite the fact that the edtech ecosystem has grown at an exponential rate in recent years, it is still a relatively shallow well. A tiny number of expanding businesses expressed an interest because the focus was on a small number of specific topics.
However, this isn’t the situation at the present time. In the past, pitches to venture capitalists had to overcome concerns about the size of the market and the willingness of customers to adopt technology aided learning solutions. This was especially true for startups.
2020 will be remembered fondly by many in the education field because of the pandemonium it brought to the classrooms and the work place during the school year. As a result, the year 2017 will be regarded as “the year the education sector finally woke up to the solutions being developed by edtech companies to help individuals learn more quickly and affordably while also being more efficient and effective.”
edtech investment is predicted to surge in 2021, with a diverse variety of investors pouring money into the sector, which comes as no surprise. It is estimated that the amount invested in educational technology between 2020 and 2021 will be equal to the sum of funds received between 2014 and 2019.
To return to the original metaphor, the educational technology ecosystem has grown into a big, vibrant lake. Because of the influx of new, fascinating firms from all over the world, even generalist investors are beginning to believe that the industry has the potential to generate the kinds of outsized returns witnessed in finance, healthtech, and other fields.
Today, we released our 2021 finance report, which focuses on the expansion and activities in the European edtech sector. We calculated the stats with the help of Dealroom’s edtech-targeted data platform.
A year’s worth of information
According to the Education Venture Capital Association (EVCA), edtech venture capital investments in Europe alone will have increased by three times by 2021, from $790 million to $2.5 billion, while global investments will have increased by 34 percent, from $15 billion to $20.1 billion, during the same time span. The amount of educational technology transactions taking place in Europe is increasing, with the continent’s ecosystem accounting for 31 percent of all transactions in the industry in 2019, up from 21 percent in 2019.