Edtech startups are attracting significant investment from venture capitalists, private equity firms, and other investors. The education industry has been relatively slow to adopt technology, providing a large market opportunity for edtech startups to innovate and disrupt traditional models of education delivery. The market size for global edtech is estimated to reach $252 billion by 2020, and has continued to grow even during the COVID-19 pandemic as more people seek online learning solutions.
Categories and Main Players
Edtech startups operate in a wide range of categories, including:
- Bootcamps: Companies like General Assembly, Flatiron School, and Lambda School offer intensive coding and tech-focused programs to help people gain practical skills for careers in technology. These programs typically have a strong focus on job placement and are designed to be completed in a few months.
- Apps: Many edtech startups develop mobile applications to make learning more accessible and convenient. Examples include Duolingo, which teaches language skills, and Khan Academy, which provides free educational resources and assessments.
- Marketplaces: Startups such as Udemy, Coursera, and Skillshare connect learners with instructors and content providers. They offer a wide range of online courses, from technical skills to creative pursuits, and generate revenue by charging fees for access to the content.
Investors in Edtech
Edtech startups are attracting investment from a variety of investors, including venture capital firms, private equity firms, and corporate venture capital units. The most active investors in edtech startups include:
- GSV Acceleration: GSV has invested in companies such as DreamBox Learning, Coursera, and 2U.
- New Markets Venture Partners: invests in early-stage edtech startups that have a strong focus on improving educational outcomes for underrepresented populations. Portfolio companies include Knewton, AltSchool, and Everfi.
- Bessemer Venture Partners: Portfolio companies include Instructure, Pluralsight, and Udemy.
- GSV Capital: with a focus on companies that use technology to improve educational outcomes. Portfolio companies include 2U, Chegg, and Coursera.