Patrick Brothers, Co-CEO of global market research firm HolonIQ, says of their latest data, “Language Learning, VR, Cyber and Finance shine through Q3 EdTech VC Highlights. Big results from Europe, India, Australia, Brazil and the US.” According to HolonIQ’s latest findings, there was $904M of edtech venture capital for third quarter of this year; “Q3 marked an upswing in total funding on Q2 thanks to a handful of stronger-than-expected Series B/C rounds. One third of Q2 funding came from:
🇦🇹GoStudent,
🇮🇳 Auxilo Finserve Private Limited
🇺🇸 Preply,
🇧🇷 Principia and
🇺🇸 Transfr.
According to their data: “Q2 did indeed turn out to be the bottom of the funding market for EdTech VC (so far – fingers crossed). Q3 delivered stronger funding overall, despite the number of funding rounds remaining well below 50% of the previous few years. Tutoring, Language Learning, Finance and VR are attracting major funding support.
“2021 was peak EdTech VC, reaching $20.8B through 3,000+ funding rounds and holding up 32 EdTech Unicorns by the end of the year. By December 2021, EdTech Venture investment was 40x larger than it was in 2010, nearly 5x the previous investment peak in 2015 and 3x pre-pandemic investment levels in 2019. 2022 halved EdTech VC to $10.6B and 2023 will now likely reach one-third of 2022’s funding levels, expected to come in around $3.5B. So far in 2023 we’ve seen around $2.7B of VC through nearly 700 transactions. Check out [their] Q1 Note and Q2 Note to catchup on the year so far. You will also note we’ve been holding our $3.5B full year forecast since April and as mentioned expect to finish the year somewhere around that level.
“On a brighter note, major funding rounds in Q3 demonstrate where investors are committing ‘dry powder’ and where they see scale and impact in a post pandemic and more tech-mature education and training landscape. For the full report: Learn more.
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