A seasoned edtech recruiter dishes on the realities of our field—and the root of the problem.
GUEST COLUMN | by Sarah Risch
FATMAWATI ACHMAD ZAENURI
Private Equity firms keep making the same mistake in K-12 edtech. They pour in money, expecting quick wins—but too often, their playbook fails. Are they fueling sustainable growth, or setting companies up to fail?
Private equity’s footprint in education has seen massive shifts in recent years. In 2021, private equity firms invested $17.1 billion in the U.S. education sector. But by 2023, that number had plummeted to $6.4 billion, and as of May 2024, only $1.5 billion in U.S. PE education deals had been recorded—a sharp decline (Private Equity International).
‘In 2021, private equity firms invested $17.1 billion in the U.S. education sector. But by 2023, that number had plummeted to $6.4 billion, and as of May 2024, only $1.5 billion in U.S. PE education deals…’
This kind of volatility raises important questions. Private equity firms often enter K-12 edtech with aggressive growth targets, expecting quick wins and high returns. But edtech is not like other industries, and applying a standard private equity playbook doesn’t work. Unlike traditional markets, where revenue and market share drive success, K-12 operates on fiscal timelines tied to school-year budgets, with funding dependent on government cycles, grants, and public dollars. Buying decisions are made through complex processes involving district leaders, committees, and educators, each with different priorities. And while other industries scale by aggressively acquiring customers, K-12 growth is often dictated by policy shifts, funding availability, and trust built over time. This is not a traditional SaaS market. Success isn’t just about selling a product—it’s about ensuring it integrates into schools in a way that actually improves learning outcomes.
Many private equity firms don’t grasp these realities. They chase aggressive growth and quick wins, overlooking the slower, trust-driven nature of the industry. When companies prioritize speed over trust, they risk losing credibility and damaging the very relationships that made them successful in the first place. They may cut customer support and implementation teams, push sales teams to overpromise and underdeliver, or cut investment in employees and product development.
With nearly two decades of experience recruiting for K-12 edtech companies, I have had a front-row seat to how private equity shapes this industry. I am often one of the first to hear about layoffs, restructures, and shifts in strategy as candidates navigate career moves in an evolving landscape. Through countless conversations with edtech professionals, I have gained a unique pulse on how PE-backed decisions impact company culture, job stability, and long-term growth. The stories I hear every day reinforce one simple truth—when private equity firms take the time to truly understand edtech, they can drive real success. When they do not, the consequences ripple across teams, products, and ultimately, the schools these companies serve.
The Right Private Equity Partner Can Create Real Growth
Not all PE firms are the same. While some firms take a short-term, numbers-first approach, others bring expertise that can help edtech companies scale in ways they never could on their own.
Edtech companies are often built by passionate founders. These leaders create meaningful products that serve real needs, but that does not always mean they have the business experience to scale effectively. A well-aligned private equity partner can help an edtech company scale strategically, applying business expertise while still respecting the trust-based nature of the education market. The firms that get this balance right drive real, sustainable success.
The Real Issue Is Not Private Equity Itself
It is easy to blame private equity when edtech companies struggle post-acquisition, but the root of the problem often starts earlier. Founders and venture capitalists often make decisions that prioritize a profitable exit over the long-term health of the company, its employees, and its customers.
Private equity firms operate with a clear purpose. Their goal is to create enterprise value, whether by increasing sales, acquiring complementary companies to drive cross-selling, or reducing operational costs. If a company sells to private equity, these are the kinds of changes that will follow. The real question is whether those changes are handled in a way that strengthens the company’s ability to serve schools and educators—or whether they come at the cost of long-term sustainability.
What Private Equity Firms Must Understand to Win in Edtech
For private equity firms looking to succeed in edtech, the approach matters. Before acquiring a company, it is essential to understand the realities of the market.
Balancing profitability with mission-driven impact requires a thoughtful approach. Private equity firms should invest in resources that improve retention and strengthen partnerships. Growth should be strategic and sustainable rather than rushed in ways that compromise credibility.
Private equity can be a powerful tool for scaling edtech, but only when firms take the time to understand the industry. The future of edtech will be shaped by those who get this balance right.
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Sarah Risch, as VP of Talent Acquisition, Educational Technology, for Rockwood Search Associates, builds rockstar teams for edtech. As a seasoned recruiter and industry expert, she specializes in nationwide talent acquisition for the K-12 edtech sector. Her mission is to connect visionary companies with transformative talent, ensuring the education technology space continues to innovate and thrive. With a deep understanding of the unique challenges and opportunities in K-12 education, she partners with organizations providing cutting-edge solutions in technology, publishing, services, learning environments, curriculum, professional development, data management, assessments, and beyond. Connect with Sarah on LinkedIn.
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